Table of Contents
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 JUNE 30, 2023MARCH 31, 2024
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM     TO      
COMMISSION FILE NUMBER 1-11846
atr-20200630x10q002.jpg
AptarGroup, Inc.
Delaware36-3853103
(State of Incorporation)(I.R.S. Employer Identification No.)
265 EXCHANGE DRIVE, SUITE 301, CRYSTAL LAKE, IL 60014
815-477-0424
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock, $.01 par valueATRNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrantregistrant 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 July 24, 2023,April 22, 2024, was 65,637,10666,263,631 shares.


Table of Contents
AptarGroup, Inc.
Form 10-Q
Quarter Ended June 30, 2023March 31, 2024
INDEX
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PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
AptarGroup, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
In thousands, except per share amounts
In thousands, except per share amounts
In thousands, except per share amounts
Three Months Ended
June 30,
Six Months Ended
June 30,
Three Months Ended March 31,
2023202220232022
Three Months Ended March 31,
Three Months Ended March 31,20242023
Net SalesNet Sales$895,906 $844,543 $1,755,973 $1,689,475 
Net Sales
Net Sales
Operating Expenses:Operating Expenses:
Cost of sales (exclusive of depreciation and amortization shown below)
Cost of sales (exclusive of depreciation and amortization shown below)
Cost of sales (exclusive of depreciation and amortization shown below)Cost of sales (exclusive of depreciation and amortization shown below)573,711 549,010 1,131,133 1,091,738 
Selling, research & development and administrativeSelling, research & development and administrative141,428 135,382 289,351 280,923 
Depreciation and amortizationDepreciation and amortization62,267 58,552 121,526 117,217 
Restructuring initiativesRestructuring initiatives1,943 428 13,467 719 
Total Operating ExpensesTotal Operating Expenses779,349 743,372 1,555,477 1,490,597 
Operating IncomeOperating Income116,557 101,171 200,496 198,878 
Other (Expense) Income:Other (Expense) Income:
Other (Expense) Income:
Other (Expense) Income:
Interest expense
Interest expense
Interest expenseInterest expense(9,688)(11,982)(19,916)(20,912)
Interest incomeInterest income648 989 1,320 1,277 
Net investment gain (loss)2,891 (483)3,079 (1,733)
Net investment gain
Equity in results of affiliatesEquity in results of affiliates643 (276)512 (362)
Miscellaneous, net(173)52 (1,344)(1,051)
Miscellaneous expense, net
Total Other ExpenseTotal Other Expense(5,679)(11,700)(16,349)(22,781)
Income before Income TaxesIncome before Income Taxes110,878 89,471 184,147 176,097 
Income before Income Taxes
Income before Income Taxes
Provision for Income Taxes
Provision for Income Taxes
Provision for Income TaxesProvision for Income Taxes27,831 25,858 46,514 50,113 
Net IncomeNet Income$83,047 $63,613 $137,633 $125,984 
Net Income
Net Income
Net Loss Attributable to Noncontrolling Interests
Net Loss Attributable to Noncontrolling Interests
Net Loss Attributable to Noncontrolling InterestsNet Loss Attributable to Noncontrolling Interests$25 $12 $203 $64 
Net Income Attributable to AptarGroup, Inc.Net Income Attributable to AptarGroup, Inc.$83,072 $63,625 $137,836 $126,048 
Net Income Attributable to AptarGroup, Inc.
Net Income Attributable to AptarGroup, Inc.
Net Income Attributable to AptarGroup, Inc. per Common Share:Net Income Attributable to AptarGroup, Inc. per Common Share:
Net Income Attributable to AptarGroup, Inc. per Common Share:
Net Income Attributable to AptarGroup, Inc. per Common Share:
Basic
Basic
BasicBasic$1.27 $0.97 $2.11 $1.92 
DilutedDiluted$1.24 $0.95 $2.07 $1.88 
Average Number of Shares Outstanding:Average Number of Shares Outstanding:
Average Number of Shares Outstanding:
Average Number of Shares Outstanding:
Basic
Basic
BasicBasic65,568 65,475 65,470 65,509 
DilutedDiluted66,855 66,900 66,748 66,969 
Dividends per Common ShareDividends per Common Share$0.38 $0.38 $0.76 $0.76 
Dividends per Common Share
Dividends per Common Share

See accompanying unaudited Notes to Condensed Consolidated Financial Statements.
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AptarGroup, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
In thousands
In thousands
In thousandsIn thousands
Three Months Ended
June 30,
Six Months Ended
June 30,
Three Months Ended March 31,
2023202220232022
Three Months Ended March 31,
Three Months Ended March 31,20242023
Net IncomeNet Income$83,047 $63,613 $137,633 $125,984 
Other Comprehensive Income (Loss):
Net Income
Net Income
Other Comprehensive (Loss) Income:
Foreign currency translation adjustmentsForeign currency translation adjustments(1,749)(68,845)23,875 (91,887)
Changes in derivative (losses) gains, net of tax(3,764)533 (5,131)121 
Foreign currency translation adjustments
Foreign currency translation adjustments
Changes in derivative gains (losses), net of tax
Defined benefit pension plan, net of taxDefined benefit pension plan, net of tax
Actuarial gain (loss), net of tax7 33 68 (750)
Actuarial gain, net of tax
Actuarial gain, net of tax
Actuarial gain, net of tax
Amortization of prior service cost included in net income, net of tax
Amortization of prior service cost included in net income, net of tax
Amortization of prior service cost included in net income, net of taxAmortization of prior service cost included in net income, net of tax33 25 65 53 
Amortization of net loss included in net income, net of taxAmortization of net loss included in net income, net of tax162 1,572 322 3,152 
Total defined benefit pension plan, net of taxTotal defined benefit pension plan, net of tax202 1,630 455 2,455 
Total other comprehensive (loss) incomeTotal other comprehensive (loss) income(5,311)(66,682)19,199 (89,311)
Comprehensive Income (Loss)77,736 (3,069)156,832 36,673 
Comprehensive Loss Attributable to Noncontrolling Interests896 826 231 840 
Comprehensive Income (Loss) Attributable to AptarGroup, Inc.$78,632 $(2,243)$157,063 $37,513 
Comprehensive Income
Comprehensive Loss (Income) Attributable to Noncontrolling Interests
Comprehensive Income Attributable to AptarGroup, Inc.
See accompanying unaudited Notes to Condensed Consolidated Financial Statements.
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AptarGroup, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
In thousandsIn thousands
March 31, 2024
June 30, 2023December 31, 2022
March 31, 2024
March 31, 2024December 31, 2023
AssetsAssets
Cash and equivalentsCash and equivalents$120,983 $141,732 
Cash and equivalents
Cash and equivalents
Short-term investmentsShort-term investments21 — 
Accounts and notes receivable, less current expected credit loss ("CECL") of $12,100 in 2023 and $9,519 in 2022718,619 676,987 
Accounts and notes receivable, less current expected credit loss ("CECL") of $15,512 in 2024 and $16,217 in 2023
InventoriesInventories516,338 486,806 
Prepaid and otherPrepaid and other160,058 124,766 
Total Current AssetsTotal Current Assets1,516,019 1,430,291 
LandLand30,192 30,197 
Buildings and improvementsBuildings and improvements724,703 693,542 
Machinery and equipmentMachinery and equipment3,041,491 2,925,517 
Property, Plant and Equipment, GrossProperty, Plant and Equipment, Gross3,796,386 3,649,256 
Less: Accumulated depreciationLess: Accumulated depreciation(2,400,575)(2,305,592)
Property, Plant and Equipment, NetProperty, Plant and Equipment, Net1,395,811 1,343,664 
Investments in equity securitiesInvestments in equity securities53,878 52,308 
GoodwillGoodwill956,908 945,632 
Intangible assets, netIntangible assets, net299,490 315,744 
Operating lease right-of-use assetsOperating lease right-of-use assets58,179 58,675 
MiscellaneousMiscellaneous67,427 57,144 
Total Other AssetsTotal Other Assets1,435,882 1,429,503 
Total AssetsTotal Assets$4,347,712 $4,203,458 
See accompanying unaudited Notes to Condensed Consolidated Financial Statements.
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AptarGroup, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
In thousands, except share and per share amountsIn thousands, except share and per share amounts
March 31, 2024
June 30, 2023December 31, 2022
March 31, 2024
March 31, 2024December 31, 2023
Liabilities and Stockholders’ EquityLiabilities and Stockholders’ Equity
Current Liabilities:Current Liabilities:
Current Liabilities:
Current Liabilities:
Notes payable, revolving credit facility and overdrafts
Notes payable, revolving credit facility and overdrafts
Notes payable, revolving credit facility and overdraftsNotes payable, revolving credit facility and overdrafts$61,838 $3,810 
Current maturities of long-term obligations, net of unamortized debt issuance costsCurrent maturities of long-term obligations, net of unamortized debt issuance costs214,257 118,981 
Accounts payable, accrued and other liabilitiesAccounts payable, accrued and other liabilities753,690 794,385 
Total Current LiabilitiesTotal Current Liabilities1,029,785 917,176 
Long-Term Obligations, net of unamortized debt issuance costsLong-Term Obligations, net of unamortized debt issuance costs949,852 1,052,597 
Deferred income taxesDeferred income taxes19,242 20,563 
Retirement and deferred compensation plansRetirement and deferred compensation plans56,143 48,977 
Operating lease liabilitiesOperating lease liabilities43,107 42,948 
Deferred and other non-current liabilitiesDeferred and other non-current liabilities61,157 52,993 
Commitments and contingenciesCommitments and contingencies — 
Total Deferred Liabilities and OtherTotal Deferred Liabilities and Other179,649 165,481 
AptarGroup, Inc. stockholders’ equityAptarGroup, Inc. stockholders’ equity
Common stock, $.01 par value, 199 million shares authorized, 71.3 million and 70.9 million shares issued as of June 30, 2023 and December 31, 2022, respectively713 709 
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
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
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
Capital in excess of par valueCapital in excess of par value1,005,007 968,618 
Retained earningsRetained earnings2,017,065 1,929,240 
Accumulated other comprehensive lossAccumulated other comprehensive loss(321,913)(341,366)
Less: Treasury stock at cost, 5.7 million and 5.6 million shares as of June 30, 2023 and December 31, 2022, respectively(526,484)(503,266)
Less: Treasury stock at cost, 5.8 million shares as of March 31, 2024 and December 31, 2023
Total AptarGroup, Inc. Stockholders’ EquityTotal AptarGroup, Inc. Stockholders’ Equity2,174,388 2,053,935 
Noncontrolling interests in subsidiariesNoncontrolling interests in subsidiaries14,038 14,269 
Total Stockholders’ EquityTotal Stockholders’ Equity2,188,426 2,068,204 
Total Liabilities and Stockholders’ EquityTotal Liabilities and Stockholders’ Equity$4,347,712 $4,203,458 
See accompanying unaudited Notes to Condensed Consolidated Financial Statements.
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AptarGroup, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
In thousands
Three Months EndedAptarGroup, Inc. Stockholders’ Equity
June 30, 2023 and 2022Retained EarningsAccumulated
Other
Comprehensive (Loss) Income
Common
Stock
Par Value
Treasury
Stock
Capital in
Excess of
Par Value
Non-
Controlling
Interest
Total
Equity
Balance - March 31, 2022$1,826,924 $(338,708)$705 $(434,867)$929,218 $15,179 $1,998,451 
Net income (loss)63,625 — — — — (12)63,613 
Foreign currency translation adjustments— (68,031)— — — (814)(68,845)
Changes in unrecognized pension gains and related amortization, net of tax— 1,630 — — — — 1,630 
Changes in derivative gains, net of tax— 533 — — — — 533 
Stock awards and option exercises— — 4,422 10,679 — 15,102 
Cash dividends declared on common stock(24,915)— — — — — (24,915)
Treasury stock purchased— — — (37,105)— — (37,105)
Balance - June 30, 2022$1,865,634 $(404,576)$706 $(467,550)$939,897 $14,353 $1,948,464 
Balance - March 31, 2023$1,958,930 $(317,473)$711 $(520,329)$990,984 $14,934 $2,127,757 
Net income (loss)83,072 — — — — (25)83,047 
Foreign currency translation adjustments— (878)— — — (871)(1,749)
Changes in unrecognized pension gains and related amortization, net of tax— 202 — — — — 202 
Changes in derivative gains, net of tax— (3,764)— — — — (3,764)
Stock awards and option exercises— — 3,155 14,023 — 17,180 
Cash dividends declared on common stock(24,937)— — — — — (24,937)
Treasury stock purchased— — — (9,310)— — (9,310)
Balance - June 30, 2023$2,017,065 $(321,913)$713 $(526,484)$1,005,007 $14,038 $2,188,426 
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In thousandsIn thousands
Six Months EndedAptarGroup, Inc. Stockholders’ Equity
June 30, 2023 and 2022Retained
Earnings
Accumulated
Other
Comprehensive
(Loss) Income
Common
Stock
Par Value
Treasury
Stock
Capital in
Excess of
Par Value
Non-
Controlling
Interest
Total
Equity
Three Months Ended
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, 2021
Three Months Ended
Three Months Ended
March 31, 2024 and 2023
March 31, 2024 and 2023
March 31, 2024 and 2023Retained
Earnings
Accumulated
Other
Comprehensive
(Loss) Income
Common
Stock
Par Value
Treasury
Stock
Capital in
Excess of
Par Value
Non-
Controlling
Interest
Total
Equity
Balance - December 31, 2022
Balance - December 31, 2022
Balance - December 31, 2022
Net income (loss)Net income (loss)126,048 — — — — (64)125,984 
Foreign currency translation adjustments
Foreign currency translation adjustments
Foreign currency translation adjustmentsForeign currency translation adjustments— (91,111)— — — (776)(91,887)
Changes in unrecognized pension gains (losses) and related amortization, net of taxChanges in unrecognized pension gains (losses) and related amortization, net of tax— 2,455 — — — — 2,455 
Changes in derivative gains (losses), net of taxChanges in derivative gains (losses), net of tax— 121 — — — — 121 
Stock awards and option exercisesStock awards and option exercises— — 6,741 23,363 — 30,106 
Cash dividends declared on common stockCash dividends declared on common stock(49,827)— — — — — (49,827)
Treasury stock purchasedTreasury stock purchased— — — (53,088)— — (53,088)
Balance - June 30, 2022$1,865,634 $(404,576)$706 $(467,550)$939,897 $14,353 $1,948,464 
Balance - March 31, 2023
Balance - December 31, 2022$1,929,240 $(341,366)$709 $(503,266)$968,618 $14,269 $2,068,204 
Balance - December 31, 2023
Balance - December 31, 2023
Balance - December 31, 2023
Net income (loss)Net income (loss)137,836 — — — — (203)137,633 
Foreign currency translation adjustments
Foreign currency translation adjustments
Foreign currency translation adjustmentsForeign currency translation adjustments(226)24,129 — — — (28)23,875 
Changes in unrecognized pension gains (losses) and related amortization, net of taxChanges in unrecognized pension gains (losses) and related amortization, net of tax— 455 — — — — 455 
Changes in derivative gains (losses), net of taxChanges in derivative gains (losses), net of tax— (5,131)— — — — (5,131)
Stock awards and option exercisesStock awards and option exercises— — 5,821 36,389 — 42,214 
Cash dividends declared on common stockCash dividends declared on common stock(49,785)— — — — — (49,785)
Treasury stock purchasedTreasury stock purchased— — — (29,039)— — (29,039)
Balance - June 30, 2023$2,017,065 $(321,913)$713 $(526,484)$1,005,007 $14,038 $2,188,426 
Balance - March 31, 2024
See accompanying unaudited Notes to Condensed Consolidated Financial Statements.
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AptarGroup, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
In thousands, brackets denote cash outflowsIn thousands, brackets denote cash outflows
Six Months Ended June 30,20232022
Three Months Ended March 31,
Three Months Ended March 31,
Three Months Ended March 31,20242023
Cash Flows from Operating Activities:Cash Flows from Operating Activities:
Cash Flows from Operating Activities:
Cash Flows from Operating Activities:
Net income
Net income
Net incomeNet income$137,633 $125,984 
Adjustments to reconcile net income to net cash provided by operations:Adjustments to reconcile net income to net cash provided by operations:
DepreciationDepreciation99,432 95,123 
Depreciation
Depreciation
AmortizationAmortization22,094 22,094 
Stock-based compensationStock-based compensation25,433 22,136 
Provision for CECL2,877 2,338 
Gain on disposition of fixed assets(2,945)(179)
Net (gain) loss on remeasurement of equity securities(3,079)1,733 
(Release) Provision for CECL
Loss (gain) on disposition of fixed assets
Net gain on remeasurement of equity securities
Deferred income taxesDeferred income taxes(6,321)(5,484)
Defined benefit plan expenseDefined benefit plan expense7,098 12,347 
Equity in results of affiliatesEquity in results of affiliates(512)362 
Change in fair value of contingent consideration (2,265)
Changes in balance sheet items, excluding effects from foreign currency adjustments:Changes in balance sheet items, excluding effects from foreign currency adjustments:
Changes in balance sheet items, excluding effects from foreign currency adjustments:
Changes in balance sheet items, excluding effects from foreign currency adjustments:
Accounts and other receivables
Accounts and other receivables
Accounts and other receivablesAccounts and other receivables(28,287)(60,045)
InventoriesInventories(18,569)(49,242)
Prepaid and other current assetsPrepaid and other current assets(32,535)(24,091)
Accounts payable, accrued and other liabilitiesAccounts payable, accrued and other liabilities687 62,973 
Income taxes payableIncome taxes payable(12,869)822 
Retirement and deferred compensation plan liabilitiesRetirement and deferred compensation plan liabilities(2,812)(19,727)
Other changes, netOther changes, net(5,124)(8,225)
Net Cash Provided by OperationsNet Cash Provided by Operations182,201 176,654 
Cash Flows from Investing Activities:Cash Flows from Investing Activities:
Capital expendituresCapital expenditures(155,012)(147,262)
Proceeds from government grants 12,794 
Capital expenditures
Capital expenditures
Proceeds from sale of property, plant and equipmentProceeds from sale of property, plant and equipment3,542 507 
Maturity of short-term investment 740 
Proceeds from sale of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of short-term investments
Purchase of short-term investments
Purchase of short-term investmentsPurchase of short-term investments(21)— 
Acquisition of businesses, net of cash acquired and release of escrowAcquisition of businesses, net of cash acquired and release of escrow(10,910)— 
Acquisition of intangible assets, netAcquisition of intangible assets, net(1,300)— 
Proceeds from sale of investment in equity securities 1,088 
Notes receivable, net
Notes receivable, net
Notes receivable, netNotes receivable, net92 (6,992)
Net Cash Used by Investing ActivitiesNet Cash Used by Investing Activities(163,609)(139,125)
Cash Flows from Financing Activities:Cash Flows from Financing Activities:
Proceeds from notes payable and overdraftsProceeds from notes payable and overdrafts19,063 20,457 
Proceeds from notes payable and overdrafts
Proceeds from notes payable and overdrafts
Repayments of notes payable and overdraftsRepayments of notes payable and overdrafts(22,631)(21,010)
Proceeds and repayments of short term revolving credit facility, net61,053 (144,345)
Proceeds and (repayments) of short term revolving credit facility, net
Proceeds from long-term obligationsProceeds from long-term obligations261 402,244 
Repayments of long-term obligationsRepayments of long-term obligations(16,338)(80,453)
Debt issuance costs (4,009)
Payment of contingent consideration obligation(22,750)— 
Dividends paid
Dividends paid
Dividends paidDividends paid(49,785)(49,827)
Proceeds from stock option exercisesProceeds from stock option exercises24,342 11,416 
Purchase of treasury stockPurchase of treasury stock(29,039)(53,088)
Net Cash (Used) Provided by Financing Activities(35,824)81,385 
Net Cash Used by Financing Activities
Effect of Exchange Rate Changes on CashEffect of Exchange Rate Changes on Cash(3,517)(1,365)
Net (Decrease) Increase in Cash and Equivalents and Restricted Cash(20,749)117,549 
Net Decrease in Cash and Equivalents and Restricted Cash
Cash and Equivalents and Restricted Cash at Beginning of PeriodCash and Equivalents and Restricted Cash at Beginning of Period142,732 122,925 
Cash and Equivalents and Restricted Cash at End of PeriodCash and Equivalents and Restricted Cash at End of Period$121,983 $240,474 
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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.
Six Months Ended June 30,20232022
Three Months Ended March 31,Three Months Ended March 31,20242023
Cash and equivalents
Cash and equivalents
Cash and equivalentsCash and equivalents$120,983 $240,474 
Restricted cash included in prepaid and otherRestricted cash included in prepaid and other1,000 — 
Total Cash and Equivalents and Restricted Cash shown in the Statement of Cash FlowsTotal Cash and Equivalents and Restricted Cash shown in the Statement of Cash Flows$121,983 $240,474 
See accompanying unaudited Notes to Condensed Consolidated Financial Statements.
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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”,“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, 20222023 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, 2022.2023. 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 September 2022, the FASB issued ASU 2022-04, Liabilities-Supplier Finance Programs (Topic 405), which enhances the transparency of supplier finance programs and requires certain disclosures for a buyer in a supplier finance program. The requirements are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on roll forward information, which is effective for fiscal years beginning after December 13, 2023. Early adoption is permitted. We adopted this guidance in the fourth quarter of 2022.
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 LIBORthe London Interbank Offered Rate ("LIBOR") to a SOFR ratethe 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 the 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 timingtemporary 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.
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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 Columbia. Under current U.S. taxColombia. As of March 31, 2024, under currently enacted laws, allwe do not have a balance of our non-U.S.foreign earnings arethat will be subject to U.S. taxation on a current or deferred basis.upon repatriation. We will provide for the necessary withholding tax,and local income taxes, and U.S. federal and state 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.
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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 taxationthe examination of our returns and file incomeother tax returns inmatters by the U.S. federal jurisdictionInternal Revenue Service and many stateother tax authorities and foreign jurisdictions.government bodies. We believe that an adequate provision has been madewe have adequately provided a tax reserve for any adjustments that may result from tax examinations.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. AsDuring the second quarter of June 30, 2023, we recorded $0.7 million as assets held for sale within Prepaidprepaid and other on our Condensed Consolidated Balance Sheets related to three building locationsbuildings 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 Accountsaccounts 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 June 30, 2023,March 31, 2024, the amounts due to suppliers participating in the SCF and included in Accountsaccounts payable, accrued and other liabilities were approximately $43.3$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
Segment financial information forIn 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 prior periods has been recast to conform toreader a better understanding of the current presentation. Refer to Note 16 - Segment Information.geographies we serve. Revenue by segment and geography based on shipped fromto locations for the three and six months ended June 30,March 31, 2024 and 2023 and 2022 iswere as follows:
For the Three Months Ended June 30, 2023
SegmentEuropeDomesticLatin
America
AsiaTotal
Aptar Pharma$254,459 $100,868 $12,358 $23,015 $390,700 
Aptar Beauty213,559 58,473 38,067 19,488 329,587 
Aptar Closures57,065 85,192 21,031 12,331 175,619 
Total$525,083 $244,533 $71,456 $54,834 $895,906 
For the Three Months Ended June 30, 2022
For the Three Months Ended March 31, 2024For the Three Months Ended March 31, 2024
SegmentSegmentEuropeDomesticLatin
America
AsiaTotalSegmentEuropeDomesticLatin
America
AsiaTotal
Aptar PharmaAptar Pharma$209,118 $108,414 $6,339 $16,360 $340,231 
Aptar BeautyAptar Beauty182,934 79,819 32,452 22,462 317,667 
Aptar ClosuresAptar Closures52,913 100,569 20,351 12,812 186,645 
TotalTotal$444,965 $288,802 $59,142 $51,634 $844,543 
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For the Six Months Ended June 30, 2023
SegmentEuropeDomesticLatin
America
AsiaTotal
Aptar Pharma$481,575 $203,142 $19,581 $42,448 $746,746 
Aptar Beauty425,569 117,761 73,319 39,327 655,976 
Aptar Closures114,405 172,108 41,172 25,566 353,251 
Total$1,021,549 $493,011 $134,072 $107,341 $1,755,973 
For the Six Months Ended June 30, 2022
For the Three Months Ended March 31, 2023For the Three Months Ended March 31, 2023
SegmentSegmentEuropeDomesticLatin
America
AsiaTotalSegmentEuropeDomesticLatin
America
AsiaTotal
Aptar PharmaAptar Pharma$420,125 $214,755 $14,194 $33,619 $682,693 
Aptar BeautyAptar Beauty370,693 149,199 62,142 44,713 626,747 
Aptar ClosuresAptar Closures109,278 204,853 40,550 25,354 380,035 
TotalTotal$900,096 $568,807 $116,886 $103,686 $1,689,475 
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 arewere as follows:
Balance as of December 31, 2022Balance as of June 30, 2023Increase/
(Decrease)
Balance as of December 31, 2023Balance as of December 31, 2023Balance as of March 31, 2024Increase/
(Decrease)
Contract asset (current)Contract asset (current)$16,736 $21,196 $4,460 
Contract liability (current)Contract liability (current)80,241 87,117 6,876 
Contract liability (current)
Contract liability (current)
Contract liability (long-term)Contract liability (long-term)25,361 28,824 3,463 
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 $71.8$33.1 million, including $45.8$25.6 million relating to contract liabilities at the beginning of the year. Current contract assets are included within the Prepaid and Otherother 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.
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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.
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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 June 30, 2023March 31, 2024 or December 31, 2022.2023.
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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NOTE 3 - INVENTORIES
Inventories, by component net of reserves, consisted of:
June 30,
2023
December 31,
2022
March 31,
2024
March 31,
2024
March 31,
2024
December 31,
2023
Raw materialsRaw materials$157,165 $159,041 
Work in processWork in process177,345 153,592 
Finished goodsFinished goods181,828 174,173 
TotalTotal$516,338 $486,806 

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NOTE 4 – GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill for the sixthree months ended June 30, 2023March 31, 2024 by reporting segment arewere as follows:
Aptar
Pharma
Aptar
Beauty
Aptar ClosuresTotal
Balance as of December 31, 2022$498,742 $319,011 $127,879 $945,632 
Reclassification due to segment change— (39,472)39,472 — 
Acquisitions— 3,655 114 3,769 
Foreign currency exchange effects5,302 1,922 283 7,507 
Balance as of June 30, 2023$504,044 $285,116 $167,748 $956,908 
Aptar
Pharma
Aptar
Beauty
Aptar ClosuresTotal
Balance as of December 31, 2023$508,447 $287,097 $167,874 $963,418 
Foreign currency exchange effects(7,739)(1,857)(567)(10,163)
Balance as of March 31, 2024$500,708 $285,240 $167,307 $953,255 
The table below shows a summary of intangible assets as of June 30, 2023March 31, 2024 and December 31, 2022.2023.
June 30, 2023December 31, 2022
March 31, 2024
March 31, 2024
March 31, 2024December 31, 2023
Weighted Average Amortization Period (Years)Weighted Average Amortization Period (Years)Gross
Carrying
Amount
Accumulated
Amortization
Net
Value
Gross
Carrying
Amount
Accumulated
Amortization
Net
Value
Weighted Average Amortization Period (Years)Gross
Carrying
Amount
Accumulated
Amortization
Net
Value
Gross
Carrying
Amount
Accumulated
Amortization
Net
Value
Amortized intangible assets:Amortized intangible assets:
Patents
Patents
PatentsPatents8.8$8,174 $(2,307)$5,867 $8,044 $(1,968)$6,076 
Acquired technologyAcquired technology11.3140,053 (63,694)76,359 135,191 (56,628)78,563 
Customer relationshipsCustomer relationships13.4307,535 (111,944)195,591 305,994 (99,130)206,864 
Trademarks and trade namesTrademarks and trade names7.344,781 (31,522)13,259 43,998 (28,190)15,808 
License agreements and otherLicense agreements and other36.315,854 (7,440)8,414 15,425 (6,992)8,433 
Total intangible assetsTotal intangible assets13.2$516,397 $(216,907)$299,490 $508,652 $(192,908)$315,744 
Aggregate amortization expense for the intangible assets above for the quarters ended June 30, 2023 and 2022 was $11,131 and $11,067, respectively. Aggregate amortization expense for the intangible assets above for the sixthree months ended June 30,March 31, 2024 and 2023 was $11,323 and 2022 was $22,094 and $22,094,$10,963, respectively.
FutureAs of March 31, 2024, future estimated amortization expense for the years ending December 31 is as follows:
2023$22,808 (remaining estimated amortization for 2023)
2024202441,639 2024$31,287 (remaining estimated amortization for 2024)(remaining estimated amortization for 2024)
2025202539,910 
2026202637,580 
2026
2026
2027202725,568 
2027
2027
2028
2028
2028
ThereafterThereafter131,985 
Thereafter
Thereafter
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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 June 30, 2023.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 June 30,March 31, 2024 and 2023, and 2022, respectively, was 25.1%20.5% and 28.9%25.5%. The effective tax rate for the sixthree months ended June 30, 2023 and 2022, respectively, was 25.3% and 28.5%. The lower reported effective tax rate for the three and six months ended June 30, 2023March 31, 2024 reflects the benefits from refining certain U.S. tax filing positions as well as thea favorable mix of earnings, increased tax benefits from employee stock-based compensation.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 June 30, 2023March 31, 2024 and December 31, 2022,2023, our notes payable, revolving credit facility and overdrafts consisted of the following:
June 30,
2023
December 31,
2022
Revolving credit facility 6.09% to 6.18%$61,143 $— 
Overdrafts 3.65% to 5.73%695 3,810 
$61,838 $3,810 
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 
On June 30, 2021, we entered into an amended and restated multi-currencyAptar has a revolving credit facility (the "revolving credit facility"facility') with a syndicate of banks to replace the then-existing facility maturing July 2022 (the "prior credit facility") and to amend and restate the unsecured term loan facility extended to our wholly-owned UK subsidiary under the prior credit facility (as amended, the "amended term facility").which matures in June 2026. The revolving credit facility matures in June 2026,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 amended term facility matured in July 2022 and was repaid in full. 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 June 30, 2023, $41.5March 31, 2024, $149.5 million was utilized under the revolving credit facility in the U.S. and €18.0 million ($19.6 million) was utilized by our wholly-owned UK subsidiary. As of December 31, 2022, no balance 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. In May 2023 the revolving credit facility was amended to make SOFR the default borrowing rate for USD. 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.
In October 2020, we entered intoAptar 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 June 30, 2023March 31, 2024 or December 31, 2022.2023.
Long-Term Obligations
On March 7, 2022,February 26, 2024, we issued $400repaid in full the $100 million aggregate principal amount of 3.60%3.49% Senior Notes that were due in February 2024.
At March 2032 in an underwritten public offering. The form31, 2024 and termsDecember 31, 2023, our long-term obligations consisted of the notes were established pursuant to an Indenture, dated as of March 7, 2022, as amended and supplemented by a First Supplemental Indenture, dated as of March 7, 2022, each between the Company and U.S. Bank Trust Company, National Association, as trustee. Interest is payable semi-annually in arrears. The notes are unsecured obligations and rank equally in right of payment with all of our other existing and future senior, unsecured indebtedness.following:
March 31, 2024December 31, 2023
Notes payable 0.00% – 2.25%, due in monthly and annual installments through 2030$14,207 $14,988 
Senior unsecured notes 3.4%, due in 202450,000 50,000 
Senior unsecured notes 3.5%, due in 2024 100,000 
Senior unsecured notes 1.2%, due in 2024215,820 220,810 
Senior unsecured notes 3.6%, due in 2025125,000 125,000 
Senior unsecured notes 3.6%, due in 2026125,000 125,000 
Senior unsecured notes 3.6%, due in 2032, net of discount of $0.8 million399,180 399,154 
Finance Lease Liabilities26,115 26,478 
Unamortized debt issuance costs(3,647)(3,816)
$951,675 $1,057,614 
Current maturities of long-term obligations(271,317)(376,426)
Total long-term obligations$680,358 $681,188 
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At June 30, 2023 and December 31, 2022, our long-term obligations consisted of the following:
June 30, 2023December 31, 2022
Notes payable 0.00% – 2.25%, due in monthly and annual installments through 2028$15,850 $29,167 
Senior unsecured notes 1.0%, due in 2023109,130 106,995 
Senior unsecured notes 3.4%, due in 202450,000 50,000 
Senior unsecured notes 3.5%, due in 2024100,000 100,000 
Senior unsecured notes 1.2%, due in 2024218,260��213,990 
Senior unsecured notes 3.6%, due in 2025125,000 125,000 
Senior unsecured notes 3.6%, due in 2026125,000 125,000 
Senior unsecured notes 3.6%, due in 2032, net of discount of $0.9 million399,102 399,050 
Finance Lease Liabilities25,951 26,934 
Unamortized debt issuance costs(4,184)(4,558)
$1,164,109 $1,171,578 
Current maturities of long-term obligations(214,257)(118,981)
Total long-term obligations$949,852 $1,052,597 
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$211,161267,768 
Year Two274,833131,503 
Year Three256,484130,561 
Year Four60274 
Year Five7559 
Thereafter399,187399,242 
Covenants
Our revolving credit facility and corporate long-term obligations require us to satisfy certain financial and other covenants including:
RequirementLevel at June 30, 2023March 31, 2024
Consolidated Leverage Ratio (1) Maximum of 3.50 to 1.00 1.811.39 to 1.00
Consolidated Interest Coverage Ratio (1) Minimum of 3.00 to 1.00 15.5516.75 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 2037.2042. Most of the operating leases contain renewal options and certain leases include options to purchase the related asset during or at the end of the lease term.
Amortization expense related to finance leases is included in depreciation expense, while rent expense related to operating leases is included within cost of sales and selling, research & development and administrative expenses.
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The components of lease expense for the three and six months ended June 30,March 31, 2024 and 2023 and 2022 were as follows:
Three Months Ended June 30,Six Months Ended June 30,
Three Months Ended March 31,
2023202220232022
Three Months Ended March 31,
Three Months Ended March 31,20242023
Operating lease costOperating lease cost$5,277 $4,921 $10,691 $10,202 
Finance lease cost:Finance lease cost:
Finance lease cost:
Finance lease cost:
Amortization of right-of-use assets
Amortization of right-of-use assets
Amortization of right-of-use assetsAmortization of right-of-use assets$867 $949 $1,778 $2,078 
Interest on lease liabilitiesInterest on lease liabilities295 314 594 639 
Total finance lease costTotal finance lease cost$1,162 $1,263 $2,372 $2,717 
Short-term lease and variable lease costsShort-term lease and variable lease costs$5,197 $2,746 $10,109 $6,728 
Short-term lease and variable lease costs
Short-term lease and variable lease costs
Supplemental cash flow information related to leases waswere as follows:
Six Months Ended June 30,20232022
Three Months Ended March 31,Three Months Ended March 31,20242023
Cash paid for amounts included in the measurement of lease liabilities:Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
Operating cash flows from operating leases
Operating cash flows from operating leasesOperating cash flows from operating leases$10,640 $10,337 
Operating cash flows from finance leasesOperating cash flows from finance leases600 645 
Financing cash flows from finance leasesFinancing cash flows from finance leases1,649 1,989 
Right-of-use assets obtained in exchange for lease obligations:Right-of-use assets obtained in exchange for lease obligations:
Right-of-use assets obtained in exchange for lease obligations:
Right-of-use assets obtained in exchange for lease obligations:
Operating leases
Operating leases
Operating leasesOperating leases$6,597 $11,903 
Finance leasesFinance leases352 731 
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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 PlansForeign Plans
Three Months Ended June 30,2023202220232022
Service cost$2,410 $3,945 $1,487 $1,876 
Interest cost2,157 1,743 917 342 
Expected return on plan assets(3,095)(3,229)(589)(689)
Amortization of net loss 1,668 229 433 
Amortization of prior service cost — 45 33 
Net periodic benefit cost$1,472 $4,127 $2,089 $1,995 
Domestic PlansForeign Plans
Six Months Ended June 30,2023202220232022
Service cost$4,819 $7,890 $2,957 $3,846 
Interest cost4,315 3,485 1,820 715 
Expected return on plan assets(6,189)(6,456)(1,169)(1,416)
Amortization of net loss 3,335 457 877 
Amortization of prior service cost — 88 71 
Net periodic benefit cost$2,945 $8,254 $4,153 $4,093 
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Domestic PlansForeign Plans
Three Months Ended March 31,2024202320242023
Service cost$2,365 $2,409 $1,630 $1,470 
Interest cost2,232 2,158 875 903 
Expected return on plan assets(3,101)(3,094)(564)(580)
Amortization of net loss — 259 228 
Amortization of prior service cost — 28 43 
Net periodic benefit cost$1,496 $1,473 $2,228 $2,064 
The components of net periodic benefit cost, other than the service cost component, are included in the line Miscellaneous,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 sixthree months ended June 30, 2023March 31, 2024 and we do not expect significant payments during 2023.the rest of 2024. We contributed $0.7$0.4 million to our foreign defined benefit plans during the sixthree months ended June 30, 2023March 31, 2024 and do not expect additional significant contributions during 2023.the rest of 2024.
NOTE 9 – ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME
Changes in Accumulated Other Comprehensive (Loss) Income by Component:
Foreign CurrencyDefined Benefit Pension PlansDerivativesTotal
Balance - December 31, 2021$(249,500)$(66,486)$(55)$(316,041)
Other comprehensive (loss) income before reclassifications(91,111)(750)4,885 (86,976)
Amounts reclassified from accumulated other comprehensive income (loss)— 3,205 (4,764)(1,559)
Net current-period other comprehensive (loss) income(91,111)2,455 121 (88,535)
Balance - June 30, 2022$(340,611)$(64,031)$66 $(404,576)
Foreign CurrencyForeign CurrencyDefined Benefit Pension PlansDerivativesTotal
Balance - December 31, 2022Balance - December 31, 2022$(328,740)$(5,951)$(6,675)$(341,366)
Other comprehensive income (loss) before reclassificationsOther comprehensive income (loss) before reclassifications24,129 68 (5,131)19,066 
Amounts reclassified from accumulated other comprehensive incomeAmounts reclassified from accumulated other comprehensive income— 387 — 387 
Net current-period other comprehensive income (loss)Net current-period other comprehensive income (loss)24,129 455 (5,131)19,453 
Balance - June 30, 2023$(304,611)$(5,496)$(11,806)$(321,913)
Balance - March 31, 2023
Balance - December 31, 2023
Balance - December 31, 2023
Balance - December 31, 2023
Other comprehensive (loss) income before reclassifications
Amounts reclassified from accumulated other comprehensive income
Net current-period other comprehensive (loss) income
Balance - March 31, 2024
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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 IncomeAffected Line in the Statement
Where Net Income is Presented
Three Months Ended June 30,20232022
Defined Benefit Pension Plans
Amortization of net loss$229 $2,101 (1)
Amortization of prior service cost45 33 (1)
274 2,134 Total before tax
(79)(537)Tax impact
$195 $1,597 Net of tax
Derivatives
Changes in cross currency swap: interest component$ $(118)Interest Expense
Changes in cross currency swap: foreign exchange component (3,042)Miscellaneous, net
$ $(3,160)Net of tax
Total reclassifications for the period$195 $(1,563)
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Details about Accumulated Other
Comprehensive Income Components
Details about Accumulated Other
Comprehensive Income Components
Amount Reclassified from Accumulated Other Comprehensive IncomeAffected Line in the Statement
Where Net Income is Presented
Details about Accumulated Other
Comprehensive Income Components
Amount Reclassified from Accumulated Other Comprehensive IncomeAffected Line in the Statement
Where Net Income is Presented
Six Months Ended June 30,20232022
Three Months Ended March 31,
Defined Benefit Pension Plans
Defined Benefit Pension Plans
Defined Benefit Pension PlansDefined Benefit Pension Plans
Amortization of net lossAmortization of net loss$457 $4,212 (1)
Amortization of net loss
Amortization of net loss$259 $228 (1)
Amortization of prior service costAmortization of prior service cost88 71 (1)Amortization of prior service cost28 43 43 (1)(1)
287 287 271 Total before tax
(84)(84)(79)Tax impact
$$203 $192 Net of tax
545 4,283 Total before tax
(158)(1,078)Tax impact
$387 $3,205 Net of tax
Derivatives
Changes in cross currency swap: interest component$ $(138)Interest Expense
Changes in cross currency swap: foreign exchange component (4,626)Miscellaneous, net
$ $(4,764)Net of tax
Total reclassifications for the periodTotal reclassifications for the period$387 $(1,559)
Total reclassifications for the period
Total reclassifications for the period

(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. Conversely, a strengthening U.S. dollar relative to foreign currencies has a dilutive translation effect on our financial condition and results of operations. 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% U.S. dollarUSD 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 June 30, 2023,March 31, 2024, the fair value of the cross currency swap was a $15.6$18.3 million liability. The swap agreement will mature on September 15, 2029.
Other
As of June 30, 2023,March 31, 2024, we have recorded the fair value of foreign currency forward exchange contracts of $1.0$0.3 million in Prepaidprepaid and other and $0.9$0.4 million in Accountsaccounts payable, accrued and other liabilities on the Condensed Consolidated Balance Sheets. All forward exchange contracts outstanding as of June 30, 2023March 31, 2024 had an aggregate notional contract amount of $57.9$68.8 million.
Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets as of June 30, 2023March 31, 2024 and December 31, 20222023
June 30, 2023December 31, 2022
Balance Sheet
Location
Derivatives Designated as Hedging InstrumentsDerivatives not Designated as Hedging InstrumentsDerivatives Designated as Hedging InstrumentsDerivatives not Designated as Hedging Instruments
March 31, 2024March 31, 2024December 31, 2023
Balance Sheet
Location
Balance Sheet
Location
Derivatives Designated as Hedging InstrumentsDerivatives not Designated as Hedging InstrumentsDerivatives Designated as Hedging InstrumentsDerivatives not Designated as Hedging Instruments
Derivative AssetsDerivative Assets
Foreign Exchange ContractsForeign Exchange ContractsPrepaid and other$ $953 $— $1,107 
Foreign Exchange Contracts
Foreign Exchange Contracts
$ $953 $— $1,107 
$
$
$
Derivative LiabilitiesDerivative Liabilities
Derivative Liabilities
Derivative Liabilities
Foreign Exchange Contracts
Foreign Exchange Contracts
Foreign Exchange ContractsForeign Exchange ContractsAccounts payable, accrued and other liabilities$ $909 $— $269 
Cross Currency Swap Contract (1)Cross Currency Swap Contract (1)Accounts payable, accrued and other liabilities15,636  8,840 — 
$15,636 $909 $8,840 $269 
$
__________________________
(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 Accounting on Accumulated Other Comprehensive Income (Loss) for the Three Months Ended June 30, 2023 and 2022
Derivatives Designated as Hedging InstrumentsAmount of Gain (Loss)
Recognized in
Other Comprehensive
Income on Derivative
Location of (Loss)
Gain Recognized
in Income on
Derivatives
Amount of Gain (Loss)
Reclassified from
Accumulated
Other Comprehensive
Income on Derivative
Total Amount of Affected Income Statement Line Item
2023202220232022
Cross currency swap agreement:
Interest component$ $651 Interest expense$ $118 $(9,688)
Foreign exchange component3,763 3,042 Miscellaneous, net 3,042 (173)
$3,763 $3,693 $ $3,160 
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The Effect of Derivatives Designated as Hedging Instruments on Accumulated Other Comprehensive Income (Loss) for the SixThree Months Ended June 30,March 31, 2024 and 2023 and 2022
Derivatives Designated as Hedging InstrumentsDerivatives Designated as Hedging InstrumentsAmount of Gain
Recognized in
Other Comprehensive
Income on Derivative
Location of Gain Recognized
in Income on
Derivatives
Amount of Gain
Reclassified from
Accumulated
Other Comprehensive
Income on Derivative
Total Amount of Affected Income Statement Line ItemDerivatives Designated as Hedging InstrumentsAmount of Gain
Recognized in
Other Comprehensive
Income on Derivative
Location of Gain Recognized
in Income on
Derivatives
Amount of Gain
Reclassified from
Accumulated
Other Comprehensive
Income on Derivative
Total Amount of Affected Income Statement Line Item
2023202220232022
2024
Cross currency swap agreement:
Cross currency swap agreement:
Cross currency swap agreement:Cross currency swap agreement:
Interest componentInterest component$ $259 Interest expense$ $138 $(19,916)
Interest component
Interest component
Foreign exchange componentForeign exchange component(5,131)4,626 Miscellaneous, net 4,626 (1,344)
$(5,131)$4,885 $ $4,764 
$
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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 June 30,March 31, 2024 and 2023 and 2022
Derivatives Not Designated
as Hedging Instruments
Location of (Loss) Gain Recognized
in Income on Derivatives
Amount of (Loss) Gain
Recognized in Income
on Derivatives
20232022
Foreign Exchange ContractsOther (Expense) Income:
Miscellaneous, net
$59 $1,991 
$59 $1,991 
The Effect of Derivatives Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Income for the Six Months Ended June 30, 2023 and 2022
Derivatives Not Designated
as Hedging Instruments
Derivatives Not Designated
as Hedging Instruments
Location of Loss Recognized
in Income on Derivatives
Amount of Loss
Recognized in Income
on Derivatives
Derivatives Not Designated
as Hedging Instruments
Location of Loss Recognized
in Income on Derivatives
Amount of Loss
Recognized in Income
on Derivatives
20232022
202420242023
Foreign Exchange ContractsForeign Exchange ContractsOther (Expense) Income:
Miscellaneous, net
$(800)$(109)
$(800)$(109)
$
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Gross Amounts Offset in the Statement of Financial Position
Gross Amounts Offset in the Statement of Financial Position
Gross Amounts Offset in the Statement of Financial Position
Gross Amount
Gross Amount
Gross AmountFinancial InstrumentsCash Collateral ReceivedNet Amount
Gross Amounts Offset in the Statement of Financial PositionNet Amounts Presented in the Statement of Financial PositionGross Amounts not Offset in the Statement of Financial Position
Gross AmountFinancial InstrumentsCash Collateral ReceivedNet Amount
June 30, 2023
March 31, 2024
March 31, 2024
March 31, 2024
Derivative AssetsDerivative Assets$953  $953   $953 
Total AssetsTotal Assets$953  $953   $953 
Derivative LiabilitiesDerivative Liabilities$16,545  $16,545   $16,545 
Derivative Liabilities
Derivative Liabilities
Total LiabilitiesTotal Liabilities$16,545  $16,545   $16,545 
December 31, 2022
December 31, 2023
December 31, 2023
December 31, 2023
Derivative AssetsDerivative Assets$1,107 — $1,107 — — $1,107 
Total AssetsTotal Assets$1,107 — $1,107 — — $1,107 
Derivative LiabilitiesDerivative Liabilities$9,109 — $9,109 — — $9,109 
Derivative Liabilities
Derivative Liabilities
Total LiabilitiesTotal Liabilities$9,109 — $9,109 — — $9,109 

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 June 30,March 31, 2024, the fair values of our financial assets and liabilities were categorized as follows:
TotalLevel 1Level 2Level 3
Assets
Investment in equity securities (1)
$1,698 $1,698 $— $— 
Foreign exchange contracts (2)
306 — 306 — 
Convertible notes5,650 — — 5,650 
Total assets at fair value$7,654 $1,698 $306 $5,650 
Liabilities
Foreign exchange contracts (2)
$438 $— $438 $— 
Cross currency swap contract (2)
18,347 — 18,347 — 
Total liabilities at fair value$18,785 $— $18,785 $— 
As of December 31, 2023, the fair values of our financial assets and liabilities were categorized as follows:
TotalLevel 1Level 2Level 3
Assets
Investment in equity securities (1)
$8,376 $8,376 $— $— 
Foreign exchange contracts (2)
953 — 953 — 
Convertible notes5,650 — — 5,650 
Total assets at fair value$14,979 $8,376 $953 $5,650 
Liabilities
Foreign exchange contracts (2)
$909 $— $909 $— 
Cross currency swap contract (2)
15,636 — 15,636 — 
Total liabilities at fair value$16,545 $— $16,545 $— 
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As of December 31, 2022, the fair values of our financial assets and liabilities were categorized as follows:
TotalLevel 1Level 2Level 3
TotalTotalLevel 1Level 2Level 3
AssetsAssets
Investment in equity securities (1)
Investment in equity securities (1)
Investment in equity securities (1)
Investment in equity securities (1)
$5,297 $5,297 $— $— 
Foreign exchange contracts (2)
Foreign exchange contracts (2)
1,107 — 1,107 — 
Convertible noteConvertible note5,650 — — 5,650 
Convertible note
Convertible note
Total assets at fair valueTotal assets at fair value$12,054 $5,297 $1,107 $5,650 
LiabilitiesLiabilities
Foreign exchange contracts (2)
Foreign exchange contracts (2)
$269 $— $269 $— 
Foreign exchange contracts (2)
Foreign exchange contracts (2)
Cross currency swap contract (2)
Cross currency swap contract (2)
8,840 — 8,840 — 
Contingent consideration obligation25,310 — — 25,310 
Total liabilities at fair valueTotal liabilities at fair value$34,419 $— $9,109 $25,310 
Total liabilities at fair value
Total liabilities at fair value

(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 $801.1$621.2 million as of June 30, 2023March 31, 2024 and $868.7$620.7 million as of December 31, 2022.
During the first quarter of 2022, we invested $5.0 million in a convertible note in Enable Injections, Inc. This investment is recorded at fair value and is a Level 3 fair value measurement.
During the second quarter of 2022, we invested $1.0 million in a convertible note in Siklus Refill Pte. Ltd. ("Siklus"). During the fourth quarter of 2022, Siklus repaid $0.4 million of its convertible note. This investment is recorded at fair value and is a Level 3 fair value measurement.
As discussed in Note 12 Fair Value of our Annual Report on Form 10-K for the year ended December 31, 2022, we had contingent consideration obligations to the selling equity holders of:
Fusion Packaging, Inc. ("Fusion") in connection with the acquisition of 100% of the equity interests of Fusion (the "Fusion Acquisition") based on 2022 cumulative performance targets, and
Noble International Holdings, Inc., Genia Medical, Inc. and JBCB Holdings, LLC (collectively referred to as "Noble") in connection with the acquisition of 100% of the equity interests of Noble (the "Noble Acquisition") based on 2024 cumulative performance targets.
We consider these obligations a Level 3 liability and estimated the aggregate fair value for these contingent consideration arrangements as follows:
June 30, 2023December 31, 2022
Fusion Acquisition$$25,310 
Noble Acquisition— 
$$25,310 
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Changes in the fair value of these obligations are recorded within selling, research & development and administrative expenses in our Condensed Consolidated Statements of Income. Significant changes to the inputs, as noted above, can result in a significantly higher or lower fair value measurement. In April 2023, we repaid the outstanding contingent consideration obligation to the selling equity holders of Fusion. Approximately $22.8 million is recorded as a financing activity in our Condensed Consolidated Statements of Cash Flows representing the portion of the outstanding contingent consideration that was associated with the acquisition fair value of the liability. The remaining $2.5 million is recorded within cash flow from operations. The following table provides a summary of changes in our Level 3 fair value measurements:
Balance, December 31, 2022$25,310 
Increase in fair value recorded in earnings— 
Payments(25,310)
Balance, June 30, 2023$
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 June 30, 2023March 31, 2024 and December 31, 2022.
A fire caused damage to our facility in Annecy, France in June 2016. We were insured for the damages caused by the fire, including business interruption insurance. During the second quarter of 2022, we filed a lawsuit against the insurance company to recover a part of our claim. No gain contingencies have been recognized as our ability to realize those gains remains uncertain.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 June 30, 2023.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 and six months ended June 30,March 31, 2024 and March 31, 2023, we repurchased approximately 8186 thousand shares for $9.3$12.1 million and 252171 thousand shares for $29.0 million, respectively. During the three and six months ended June 30, 2022, we repurchased approximately 348 thousand shares for $37.1 million and 488 thousand shares for $53.1$19.7 million, respectively. As of June 30, 2023,March 31, 2024, there was $79.2$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.
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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..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.
Six Months Ended June 30,2023(1)2022
Fair value per stock award$116.17 $141.95 
Grant date stock price$111.38 $114.52 
Assumptions:
Aptar's stock price expected volatility20.00 %20.20 %
Expected average volatility of peer companies39.70 %41.70 %
Correlation assumption33.30 %41.20 %
Risk-free interest rate3.83 %2.04 %
Dividend yield assumption1.36 %1.33 %

(1)The 2023 award inputs and assumptions are related to PSU-ROIC awards with a TSR modifier.
Three Months Ended March 31,20242023
Fair value per stock award$145.79 $116.17 
Grant date stock price$141.00 $111.38 
Assumptions:
Aptar's stock price expected volatility18.80 %20.00 %
Expected average volatility of peer companies34.80 %39.70 %
Correlation assumption30.70 %33.30 %
Risk-free interest rate4.51 %3.83 %
Dividend yield assumption1.16 %1.36 %
A summary of RSU activity as of June 30, 2023March 31, 2024 and changes during the sixthree month period then ended is presented below:
Time-Based RSUsPerformance-Based RSUs
UnitsWeighted Average
Grant-Date Fair Value
UnitsWeighted Average
Grant-Date Fair Value
Nonvested at January 1, 2024335,874 $115.15 514,383 $130.10 
Granted101,067 135.60 129,540 145.79 
Vested(144,668)122.38 (642)130.10 
Forfeited(1,466)116.94 (2,294)133.41 
Nonvested at March 31, 2024290,807 $118.43 640,987 $133.26 
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Time-Based RSUsPerformance-Based RSUs
UnitsWeighted Average
Grant-Date Fair Value
UnitsWeighted Average
Grant-Date Fair Value
Nonvested at January 1, 2023426,361 $111.60 610,871 $118.77 
Granted118,308 110.05 151,368 115.69 
Vested(176,945)104.08 (99,878)89.33 
Forfeited(6,880)102.59 (132,899)93.30 
Nonvested at June 30, 2023360,844 $115.04 529,462 $129.84 
Included in the time-based RSU activity for the six months ended June 30, 2023 are 13,146 units granted to non-employee directors and 10,589 units vested related to non-employee directors.
Six Months Ended June 30,20232022
Three Months Ended March 31,Three Months Ended March 31,20242023
Compensation expenseCompensation expense$22,008 $22,136 
Fair value of units vestedFair value of units vested27,178 19,724 
Intrinsic value of units vestedIntrinsic value of units vested31,809 21,481 
The actual tax benefit realized for the tax deduction from RSUs was approximately $5.4$4.9 million and $2.5 million in the sixthree months ended June 30, 2023.March 31, 2024 and 2023, respectively. As of June 30, 2023,March 31, 2024, there was $60.7$60.4 million of total unrecognized compensation cost relating to RSU awards which is expected to be recognized over a weighted-average period of 2.02.1 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 awardedreinstituted in the first quarter of 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 othersother employees, respectively, during the first sixthree months of 2023. TheAptar executive awards were issuedofficers received stock options with a 10% premium.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:
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Stock Award Plans:
Six Months Ended June 30,2023
Dividend Yield1.41%
Expected Stock Price Volatility16.55%
Risk-free Interest Rate3.57%
Expected Life of Option (years)7
Stock Award Plans:
Three Months Ended March 31,20242023
Dividend Yield1.28 %1.41 %
Expected Stock Price Volatility17.03 %16.55 %
Risk-free Interest Rate4.51 %3.57 %
Expected Life of Option (years)7.07.0
 A summary of option activity under our stock plans during the sixthree months ended June 30, 2023March 31, 2024 is presented below:
Stock Awards PlansDirector Stock Option Plans
OptionsWeighted Average
Exercise Price
OptionsWeighted Average
Exercise Price
Outstanding, January 1, 20232,623,944 $73.34 51,700 $63.91 
Granted314,736 116.20   
Exercised(350,398)68.08 (13,700)56.49 
Forfeited or expired(3,461)78.51   
Outstanding at June 30, 20232,584,821 $79.26 38,000 $66.59 
Exercisable at June 30, 20232,270,679 $74.15 38,000 $66.59 
Weighted-Average Remaining Contractual Term (Years):
Outstanding at June 30, 20233.80.9
Exercisable at June 30, 20233.00.9
Aggregate Intrinsic Value:
Outstanding at June 30, 2023$89,996 $1,787 
Exercisable at June 30, 2023$89,599 $1,787 
Intrinsic Value of Options Exercised During the Six Months Ended:
June 30, 2023$16,886 $854 
June 30, 2022$8,046 $— 
Stock Awards PlansDirector Stock Option Plans
OptionsWeighted Average
Exercise Price
OptionsWeighted Average
Exercise Price
Outstanding, January 1, 20242,182,784 $80.63 19,000 $66.59 
Granted249,663 141.00   
Exercised(299,595)70.69 (19,000)66.59 
Forfeited or expired(4,716)90.72   
Outstanding at March 31, 20242,128,136 $89.09  $ 
Exercisable at March 31, 20241,671,615 $77.98  $ 
Weighted-Average Remaining Contractual Term (Years):
Outstanding at March 31, 20244.30.0
Exercisable at March 31, 20242.90.0
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 
Six Months Ended June 30,2023
Compensation expense (included in SG&A)$3,147
Compensation expense (included in Cost of sales)278
Compensation expense, Total$3,425
Compensation expense, net of tax3,425
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Three Months Ended March 31,20242023
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 tax3,744 2,971 
Grant date fair value of options vested2,299 — 
The increase in stock option expense is due to the newly issued options as discussed above. Cash received from option exercises for the sixthree months ended June 30,March 31, 2024 and 2023 and 2022 was approximately $24.3$22.3 million and $11.4$13.8 million, respectively. The actual tax benefit realized for the tax deduction from option exercises was approximately $4.3$3.7 million and $1.4$2.5 million in the sixthree months ended June 30,March 31, 2024 and 2023, and 2022, respectively. As of June 30, 2023,March 31, 2024, there was $3.6$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 2.42.3 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 and six months ended June 30,March 31, 2024 and 2023 and 2022 iswere as follows:
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Three Months Ended
June 30, 2023June 30, 2022
DilutedBasicDilutedBasic
Consolidated operations
Income available to common stockholders$83,072 $83,072 $63,625 $63,625 
Average equivalent shares
Shares of common stock65,568 65,568 65,475 65,475 
Effect of dilutive stock-based compensation
Stock options871 — 1,021 — 
Restricted stock416 — 404 — 
Total average equivalent shares66,855 65,568 66,900 65,475 
Net income per share$1.24 $1.27 $0.95 $0.97 
Six Months Ended
June 30, 2023June 30, 2022
DilutedBasicDilutedBasic
Three Months EndedThree Months Ended
March 31, 2024March 31, 2024March 31, 2023
DilutedDilutedBasicDilutedBasic
Consolidated operationsConsolidated operations
Income available to common stockholders
Income available to common stockholders
Income available to common stockholdersIncome available to common stockholders$137,836 $137,836 $126,048 $126,048 
Average equivalent sharesAverage equivalent shares
Average equivalent shares
Average equivalent shares
Shares of common stock
Shares of common stock
Shares of common stockShares of common stock65,470 65,470 65,509 65,509 
Effect of dilutive stock-based compensationEffect of dilutive stock-based compensation
Stock options
Stock options
Stock optionsStock options889 1,109 788 906 
Restricted stockRestricted stock389 351 Restricted stock580 457 
Total average equivalent sharesTotal average equivalent shares66,748 65,470 66,969 65,509 
Net income per shareNet income per share$2.07 $2.11 $1.88 $1.92 
NOTE 16 – SEGMENT INFORMATION
During the year ended December 31, 2022, our organizational structure consisted of three market-focused business segments: Pharma, Beauty+Home and Food+Beverage. Effective January 1, 2023, we realigned two of our segments, allowing us to better serve our customers and positioning us for long-term profitable growth. We continue to haveare organized into three reporting segments;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.
We combined all of our closures operations into a single segment - Aptar Closures. The Aptar Closures business serves multiple markets, including food, beverage, personal care, home care, beauty and healthcare. Closures that were developed in Beauty + Home moved to Aptar Closures together with the operations of legacy Food + Beverage. Aptar's food protection business and our elastomeric flow-control technology business continue to report through the Aptar Closures segment.
At the same time, we have simplified and focused our Beauty + Home segment to better leverage our complex spray and dispensing solutions for prestige and premium brands in the beauty and personal care markets. For many of our customers, personal care products are considered part of "beauty" and so we renamed this segment, simply, Aptar Beauty. The segment realignment had no impact on our consolidated statements of income, balance sheets, and cash flows. Segment financial information for the prior periods has been recast to conform to the current presentation.
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, 2022.2023. 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.
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Financial information regarding our reporting segments is shown below:
Three Months Ended
June 30,
Six Months Ended
June 30,
Three Months Ended March 31,
2023202220232022
Three Months Ended March 31,
Three Months Ended March 31,20242023
Total Sales:Total Sales:
Aptar Pharma
Aptar Pharma
Aptar PharmaAptar Pharma$391,010 $345,369 $747,121 $692,041 
Aptar BeautyAptar Beauty338,404 323,794 671,742 639,162 
Aptar ClosuresAptar Closures177,471 189,166 357,910 385,234 
Total SalesTotal Sales$906,885 $858,329 $1,776,773 $1,716,437 
Less: Intersegment Sales:Less: Intersegment Sales:
Aptar PharmaAptar Pharma$310 $5,138 $375 $9,348 
Aptar Pharma
Aptar Pharma
Aptar BeautyAptar Beauty8,817 6,127 15,766 12,415 
Aptar ClosuresAptar Closures1,852 2,521 4,659 5,199 
Total Intersegment SalesTotal Intersegment Sales$10,979 $13,786 $20,800 $26,962 
Net Sales:Net Sales:
Aptar Pharma
Aptar Pharma
Aptar PharmaAptar Pharma$390,700 $340,231 $746,746 $682,693 
Aptar BeautyAptar Beauty329,587 317,667 655,976 626,747 
Aptar ClosuresAptar Closures175,619 186,645 353,251 380,035 
Net SalesNet Sales$895,906 $844,543 $1,755,973 $1,689,475 
Adjusted EBITDA (1):Adjusted EBITDA (1):
Aptar PharmaAptar Pharma$125,866 $111,006 $235,164 $226,558 
Aptar Pharma
Aptar Pharma
Aptar BeautyAptar Beauty43,100 41,230 80,305 75,780 
Aptar ClosuresAptar Closures27,772 21,354 53,780 45,537 
Corporate & Other, unallocatedCorporate & Other, unallocated(15,501)(13,663)(34,337)(31,633)
Acquisition-related costs (2)Acquisition-related costs (2) — (255)— 
Restructuring Initiatives (3)Restructuring Initiatives (3)(1,943)(428)(13,467)(719)
Net unrealized investment gain (loss) (4)2,891 (483)3,079 (2,574)
Net unrealized investment gain (4)
Depreciation and amortizationDepreciation and amortization(62,267)(58,552)(121,526)(117,217)
Interest ExpenseInterest Expense(9,688)(11,982)(19,916)(20,912)
Interest IncomeInterest Income648 989 1,320 1,277 
Income before Income TaxesIncome before Income Taxes$110,878 $89,471 $184,147 $176,097 

(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).
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(3)Restructuring Initiatives includes expense items for the three and six months ended June 30,March 31, 2024 and 2023 and 2022 as follows (see Note 19 – Restructuring Initiatives for further details):
Three Months Ended
June 30,
Six Months Ended
June 30,
Three Months Ended March 31,
2023202220232022
Three Months Ended March 31,
Three Months Ended March 31,20242023
Restructuring Initiatives by Plan:Restructuring Initiatives by Plan:
Optimization initiative
Optimization initiative
Optimization initiativeOptimization initiative$1,943 $— $13,483 $— 
Prior year initiativesPrior year initiatives 428 (16)719 
Total Restructuring InitiativesTotal Restructuring Initiatives$1,943 $428 $13,467 $719 
Restructuring Initiatives by Segment:Restructuring Initiatives by Segment:
Restructuring Initiatives by Segment:
Restructuring Initiatives by Segment:
Aptar Pharma
Aptar Pharma
Aptar PharmaAptar Pharma$434 $— $1,565 $— 
Aptar BeautyAptar Beauty479 423 9,770 534 
Aptar ClosuresAptar Closures440 962 185 
Corporate & OtherCorporate & Other590 — 1,170 — 
Total Restructuring InitiativesTotal Restructuring Initiatives$1,943 $428 $13,467 $719 
(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.
On August 31, 2022, we completed the acquisition of all the outstanding capital stock of Metaphase Design Group Inc. ("Metaphase"). Metaphase, located in St. Louis, Missouri, is a leading expert in ergonomic and industrial design of handheld devices including medical devices. The purchase price was approximately $5.1 million (net of $0.1 million cash acquired) and was funded with cash on hand. As of the acquisition date, $1.0 million was held in restricted cash for an indemnity escrow. The results of Metaphase have been included in the consolidated financial statements within our Aptar Pharma segment since the date of acquisition.
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NOTE 18 – INVESTMENT IN EQUITY SECURITIES
Our investment in equity securities consisted of the following:
June 30,
2023
December 31,
2022
March 31,
2024
March 31,
2024
December 31,
2023
Equity Method Investments:Equity Method Investments:
BTY
BTY
BTYBTY$30,409 $31,490 
SonmolSonmol4,772 4,997 
Desotec GmbHDesotec GmbH901 863 
Desotec GmbH
Desotec GmbH
Other Investments:Other Investments:
Other Investments:
Other Investments:
PureCycle
PureCycle
PureCyclePureCycle8,376 5,297 
YATYAT5,240 5,508 
LoopLoop2,894 2,894 
OthersOthers1,286 1,259 
$53,878 $52,308 
$
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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 3three 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 SoldProceedsRealized Gain
March 2022107,600$1,088 $841 
August 202250,000$511 $372 
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Shares SoldProceedsRealized Gain
July 2023248,859$2,659 $1,968 
August 2023261,590$2,945 $2,220 
For the three and six months ended June 30,March 31, 2024 and 2023, and 2022, we recorded the following net investment gain or loss on our investment in PureCycle:
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Net investment gain (loss)$2,891 $(483)$3,079 $(1,733)
Three Months Ended March 31,20242023
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.
Other than the expected $1.4 million credit loss reserve against the outstanding note receivable from one of our venture investments, Kali Care, thereThere were no indications of impairment noted in the sixthree months ended June 30,March 31, 2024 and 2023 related to these investments.
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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 and six months ended June 30,March 31, 2024 and 2023, we recognized $1.9$3.5 million and $13.5$11.5 million of restructuring costs related to this initiative, respectively. The cumulative expense incurred as of June 30, 2023March 31, 2024 was $19.7$55.2 million.
As of June 30, 2023,March 31, 2024, we have recorded the following activity associated with our optimization initiative:
Beginning Reserve at 12/31/2022Net Charges for the Six Months Ended 6/30/2023Cash PaidInterest and
FX Impact
Ending Reserve at 6/30/2023
Beginning Reserve at 12/31/2023Beginning Reserve at 12/31/2023Net Charges for the Three Months Ended 3/31/2024Cash PaidInterest and
FX Impact
Ending Reserve at 3/31/2024
Employee severanceEmployee severance$4,993 $10,256 $(5,995)$37 $9,291 
Professional fees and other costsProfessional fees and other costs— 3,227 (2,715)520 
TotalsTotals$4,993 $13,483 $(8,710)$45 $9,811 

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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 June 30,Six Months Ended June 30,
Three Months Ended March 31,
2023202220232022
Three Months Ended March 31,
Three Months Ended March 31,20242023
Net salesNet sales100.0 %100.0 %100.0 %100.0 %Net sales100.0 %100.0 %
Cost of sales (exclusive of depreciation and amortization shown below)Cost of sales (exclusive of depreciation and amortization shown below)64.0 65.0 64.4 64.6 
Selling, research & development and administrativeSelling, research & development and administrative15.8 16.0 16.5 16.6 
Depreciation and amortizationDepreciation and amortization7.0 6.9 6.9 7.0 
Restructuring initiativesRestructuring initiatives0.2 0.1 0.8 — 
Operating incomeOperating income13.0 12.0 11.4 11.8 
Interest expenseInterest expense(1.1)(1.4)(1.1)(1.3)
Other expenseOther expense0.5 — 0.2 (0.1)
Income before income taxesIncome before income taxes12.4 10.6 10.5 10.4 
Net IncomeNet Income9.3 7.5 7.8 7.5 
Effective tax rateEffective tax rate25.1 %28.9 %25.3 %28.5 %Effective tax rate20.5 %25.5 %
Adjusted EBITDA margin (1)Adjusted EBITDA margin (1)20.2 %18.9 %19.1 %18.7 %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".Measures."
During the year ended December 31, 2022, our organizational structure consisted of three market-focused business segments: Pharma, Beauty + Home and Food + Beverage. Effective January 1, 2023, we realigned two of our segments, allowing us to better serve our customers and positioning us for long-term profitable growth. We continue to have three reporting segments; Aptar Pharma and Aptar Beauty are named for the markets they serve with multiple product platforms, while Aptar Closures is primarily named for a single product platform that serves all available markets. Previously reported amounts have been reclassified to conform to the current period presentation.
NET SALES
We reportedReported net sales for the first three months of $895.92024 increased 6% to $915.4 million compared to $860.1 million for the quarter ended June 30, 2023, which represents a 6% increase compared to $844.5 million reported during the second quarterfirst three months of 2022.2023. The average U.S. dollar exchange rate weakened compared to the euro and other major currencies in which we operate, resulting in a positivefavorable currency translation impact of 1%. Our acquisitions of Metaphase, iD SCENT and Gulf Closures also had a 1% positivedid not impact on our consolidated results during the second quarterfirst three months of 2023.2024. Therefore, core sales, which excludesexclude acquisitions and changes in foreign currency rates, increased by 4%5% in the second quarterfirst three months of 20232024 compared to the same period in 2022. Strong volume growth, especially for products in our prescription, consumer healthcare and beauty applications continued to positively impact our core sales and drove the majority of our core sales growth in the current quarter.
Second Quarter 2023
Net Sales Change over Prior Year
Aptar
Pharma
Aptar
Beauty
Aptar
Closures
Total
Reported Net Sales Growth15 %4 %(6)%6 %
Currency Effects (1)(2)%(1)%(1)%(1)%
Acquisitions— %— %(1)%(1)%
Core Sales Growth13 %%(8)%%
Reported net sales for the first six months of 2023 increased 4% to $1.76 billion compared to $1.69 billion for the first six months of 2022. The average U.S. dollar exchange rate strengthened compared to the euro and other major currencies in which we operate, resulting in a negative currency translation impact of 1%.2023. Our acquisitions of Metaphase, iD SCENT, and Gulf Closures had a 1% positive impact on our consolidated results during the first half of 2023. Therefore, core sales, which excludes acquisitions and changes in foreign currency rates, increased by 4% in the first six months of 2023 compared to the same period in 2022. The combination of strong volume growth, especially for products in our prescription, consumer healthcare and beauty applications as discussed above, along with price increases to recover inflationary cost increases had a positive impact on our core sales. Of our 4%5% core sales increase approximately 3% was mainly due to improved volumes and product mix of approximately 6% while inflationary price adjustments represented a 1% decrease. All three segments contributed to the remaining 1%volume and mix growth during the first quarter of 2024, with our Aptar Pharma segment providing the majority of the increase.


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Six Months Ended June 30, 2023
Net Sales Change over Prior Year
Aptar
Pharma
Aptar
Beauty
Aptar
Closures
Total
Three Months Ended March 31, 2024
Net Sales Change over Prior Year
Three Months Ended March 31, 2024
Net Sales Change over Prior Year
Aptar
Pharma
Aptar
Beauty
Aptar
Closures
Total
Reported Net Sales GrowthReported Net Sales Growth9 %5 %(7)%4 %Reported Net Sales Growth14 % %2 %6 %
Currency Effects (1)Currency Effects (1)%%— %%Currency Effects (1)(1)%(1)%— %(1)%
AcquisitionsAcquisitions— %— %(1)%(1)%Acquisitions— %— %(1)%— %
Core Sales GrowthCore Sales Growth10 %%(8)%%Core Sales Growth13 %(1)%%%

(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:location based on shipped to locations:
Three Months Ended June 30,Six Months Ended June 30,
Three Months Ended March 31,
2023% of Total2022% of Total2023% of Total2022% of Total
Three Months Ended March 31,
Three Months Ended March 31,2024% of Total2023% of Total
Domestic
Domestic
DomesticDomestic$244,533 27 %$288,802 34 %$493,011 28 %$568,807 34 %$277,903 30 30 %$259,068 30 30 %
EuropeEurope525,083 59 %444,965 53 %1,021,549 58 %900,096 53 %Europe474,392 52 52 %458,799 53 53 %
Latin AmericaLatin America71,456 8 %59,142 %134,072 8 %116,886 %Latin America72,082 8 8 %65,128 %
AsiaAsia54,834 6 %51,634 %107,341 6 %103,686 %Asia91,071 10 10 %77,072 %
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.


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COST OF SALES (EXCLUSIVE OF DEPRECIATION AND AMORTIZATION SHOWN BELOW)
CostFor the first three months of 2024, cost of sales (“COS”) as a percent of net sales decreased to 64.0% in the second quarter of 202363.7% compared to 65.0% in the second quarter of 2022 in spite of approximately $4 million of additional costs related to the validation of the new injectables expansion capacity as well as inefficiencies in the first part of the quarter due to the Enterprise Resource Planning ("ERP") system implementation. Our COS percentage was positively impacted by an improved mix of our higher-margin Pharma product sales compared to the same period in 2022. We also benefited from the moderation of inflationary cost increases, which negatively impacted prior year results. While we maintained our normal pass-through of resin cost increases and implemented general price increases to offset other cost increases during the second quarter of 2022, there is no margin on resin pass-through costs, which increased our COS as a percentage of sales.
For the first six months of 2023, COS as a percent of net sales decreased to 64.4% compared to 64.6%64.8% in the same period in 2022. As discussed above, this2023. 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 moderation of inflationary cost increases, which more than compensated for approximately $16 million of incremental startup costs and inefficiencies forprior year, we also incurred additional expenses related to our injectables division capacity expansion and ERPEnterprise Resource Planning ("ERP") system implementation.implementation which did not repeat during 2024.
SELLING, RESEARCH & DEVELOPMENT AND ADMINISTRATIVE
Selling,Our selling, research & development and administrative expenses (“("SG&A”&A") increased by approximately $6.0$4.9 million to $141.4$152.8 million in the second quarterfirst three months of 20232024 compared to $135.4$147.9 million during the same period in 2022.2023. Excluding changes in foreign currency rates, SG&A increased by approximately $4.9$4.0 million in the quarter.first three months of 2024 compared to the first three months of 2023. Incremental costs related to our acquisitions of Metaphase, iD SCENT and Gulf Closures were $0.5$0.4 million. The remaining current quarter increase in SG&A is (partially) related toImprovements 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 programsarrangements and the timing of certain equity compensation arrangementprograms expense recognition. We also experienced higher professional fees and higher travel costs compared to 2022. However, SG&A as a percentage of net sales decreased to 15.8%16.7% in the second quarterfirst three months of 20232024 compared to 16.0%17.2% in the same period in 2022.
SG&A increased by $8.4 million to $289.4 million in the first six months of 2023 compared to $280.9 million during the same period in 2022. Excluding changes in foreign currency rates, SG&A increased by approximately $10.6 million in the first six months of 2023 compared to the first six months of 2022. Incremental costs related to our acquisitions of Metaphase, iD SCENT, and Gulf Closures were $0.6 million. As discussed above, the increase for the first six months of 2023 is partially related to higher compensation costs, including accruals related to our current short-term incentive compensation program and the timing of certain equity compensation arrangement expense recognition. We also experienced an increase in information systems costs due to the implementation of our ERP, along with higher professional fees and higher travel costs compared to 2022. SG&A as a percentage of net sales decreased to 16.5% in the first six months of 2023 compared to 16.6% in the same period in 2022.
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2023.
DEPRECIATION AND AMORTIZATION
Reported depreciationDepreciation and amortization expenses increased by approximately $3.7$5.1 million to $62.3 million in the second quarter of 2023 compared to $58.6 million during the same period in 2022. Excluding changes in foreign currency rates, depreciation and amortization increased by approximately $3.1 million in the second quarter compared to the second quarter of 2022. The majority of this increase relates to higher capital spending during the current and prior year to support our growth strategy, including several new manufacturing facilities commencing production during 2023. Incremental depreciation and amortization costs related to our acquisitions of Metaphase, iD SCENT, and Gulf Closures were not significant. Depreciation and amortization as a percentage of net sales increased to 7.0% in the second quarter of 2023 compared to 6.9% in the same period of the prior year.
Reported depreciation and amortization expenses increased by approximately $4.3 million to $121.5$64.3 million in the first sixthree months of 20232024 compared to $117.2$59.3 million during the same period a year ago. Excluding changes in foreign currency rates, depreciation and amortization increased by approximately $5.1$4.7 million in the first sixthree months of 20232024 compared to the same period a year ago. As discussed above, this increase is due to higher internal capital investments during the current year. Incremental depreciation and amortization costs related to our acquisitions of Metaphase, iD SCENT and Gulf Closures were not significant.$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 decreasedincreased to 6.9%7.0% in the first sixthree months of 20232024 compared to 7.0%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 and six months ended June 30,March 31, 2024 and 2023, we recognized $1.9$3.5 million and $13.5$11.5 million of restructuring costs related to this initiative, respectively. The cumulative expense incurred as of June 30, 2023March 31, 2024 was $19.7$55.2 million.
Restructuring costs for the three and six months ended June 30,March 31, 2024 and 2023 and 2022 arewere as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
Three Months Ended March 31,
2023202220232022
Three Months Ended March 31,
Three Months Ended March 31,20242023
Restructuring Initiatives by Plan:Restructuring Initiatives by Plan:
Optimization initiative
Optimization initiative
Optimization initiativeOptimization initiative$1,943 $— $13,483 $— 
Prior year initiativesPrior year initiatives 428 (16)719 
Total Restructuring InitiativesTotal Restructuring Initiatives$1,943 $428 $13,467 $719 
Restructuring Initiatives by Segment:Restructuring Initiatives by Segment:
Restructuring Initiatives by Segment:
Restructuring Initiatives by Segment:
Aptar Pharma
Aptar Pharma
Aptar PharmaAptar Pharma$434 $— $1,565 $— 
Aptar BeautyAptar Beauty479 423 9,770 534 
Aptar ClosuresAptar Closures440 962 185 
Corporate & OtherCorporate & Other590 — 1,170 — 
Total Restructuring InitiativesTotal Restructuring Initiatives$1,943 $428 $13,467 $719 
OPERATING INCOME
Operating income increased approximately $15.4 million to $116.6 million in the second quarter of 2023 compared to $101.2 million in the same period a year ago. Excluding changes in foreign currency rates, operating income increased by approximately $13.3 million in the quarter compared to the same period a year ago mainly due to the strong sales growth in our Pharma segment mentioned above. Operating income as a percentage of net sales increased to 13.0% in the second quarter of 2023 compared to 12.0% in the prior year period.
For the first sixthree months of 2023,2024, operating income increased approximately $1.6$28.1 million to $200.5$112.1 million compared to $198.9$83.9 million in the same period of the prior year. Excluding changes in foreign currency rates, operating income increased by approximately $2.3$26.7 million in the first sixthree months of 20232024 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 restructuringSG&A and depreciation and amortization costs. Operating income as a percentage of net sales decreasedincreased to 11.4%12.2% in the first sixthree months of 20232024 compared to 11.8%9.8% for the same period in the prior year.
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INTEREST EXPENSE
Interest expense decreased approximately $2.3$0.1 million to $9.7$10.2 million in the second quarterfirst three months of 20232024 compared to $12.0 million for the same period of the prior year.in 2023. This reduction is mainly due to the repayment of part of our private placementoutstanding debt which also included a $0.4 million make-whole payment forusing cash generated from operations over the early redemption during the second quarter of 2022 which did not repeat during the second quarter of 2023.past year. See Note 6 - Debt of the Condensed Consolidated Financial Statements for further details.
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Interest expense decreased by $1.0 million to $19.9 million in the first six months of 2023 compared to $20.9 million during the first half of 2022. As discussed above, this reduction is mainly due to the repayment of part of our private placement debt. See Note 6 – Debt of the Condensed Consolidated Financial Statements for further details.
NET OTHER INCOME (EXPENSE) INCOME
Net other income increased $3.7$2.9 million to $4.0$2.4 million of income for the three months ended March 31, 2024 from $0.3$0.4 million of expense in the same period of the prior year. ThisInterest 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 the changea $0.4 million increase in the fair value of our PureCycle investment. As discussed in Note 18 - Investment in Equity Securities of the Condensed Consolidated Financial Statements, our investment in PureCycle was converted into shares of PCT, a publicly traded entity, during the first quarter of 2021.2024 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. During the second quarter, we recognized a $2.9 million gain on this investment while we reported a $0.5 million loss during the second quarter of 2022.
Net other income increased $5.4 million to $3.6 million of income for the six months ended June 30, 2023 from $1.9 million of expense in the same period of the prior year. Of this net other income increase, $4.8 million is due to the increase in fair value of our investment in PureCycle as discussed above.
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 June 30,March 31, 2024 and 2023, and 2022, respectively, was 25.1%20.5% and 28.9%. The effective tax rate for the six months ended June 30, 2023 and 2022, respectively, was 25.3% and 28.5%25.5%. The lower reported effective tax rate for the three and six months ended June 30, 2023March 31, 2024 reflects the benefits from refining certain U.S. tax filing positions as well as thea favorable mix of earnings, increased tax benefits from employee stock-based compensation.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 $137.8$54.8 million in the three and six months ended June 30,March 31, 2024 and 2023, respectively, compared to $63.6 million and $126.0 million for the same periods in the prior year.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 June 30,Six Months Ended June 30,
Three Months Ended March 31,
2023202220232022
Three Months Ended March 31,
Three Months Ended March 31,20242023
Net Sales
Net Sales
Net SalesNet Sales$390,700 $340,231 $746,746 $682,693 
Adjusted EBITDA (1)Adjusted EBITDA (1)125,866 111,006 235,164 226,558 
Adjusted EBITDA margin (1)Adjusted EBITDA margin (1)32.2 %32.6 %31.5 %33.2 %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".Measures."
Net sales for the Aptar Pharma segmentfirst three months of 2024 increased 15% in the second quarter of 2023by 14% to $390.7$407.3 million compared to $340.2$356.0 million in the second quarterfirst three months of 2022.2023. Changes in currenciescurrency rates positively affectedimpacted net sales by 2%, while the acquisition of Metaphase did not have a significant impact1% during the second quarterfirst three months of 2023.2024. Therefore, core sales increased by 13% in the second quarter of 2023 compared to the second quarter of 2022. The majority of the sales growth is due to higher volumes in our prescription drug and consumer health care divisions. Core sales of our products to the prescription drug market increased 23% on strong demand for our emergency medicine as customers prepare for opioid overdose reversal medications going over the counter in North America. We also continue to see strong growth in our allergic rhinitis, asthma and COPD therapies sales as many regions continue to experience post-pandemic re-openings. The 19% core sales growth in the consumer health care market was driven by higher demand for our eye care, nasal decongestant and nasal saline rinse solutions. Core sales of our elastomeric components to the injectables market increased 1% as the impact from the ERP system implementation improved progressively during the quarter. Core sales of our active material science solutions decreased 13% due to a decrease in active vials used in diabetes care products and a softening in demand for probiotics after a period of rapid growth. Digital Health currently does not represent a significant percentage of the total Pharma sales.
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Second Quarter 2023
Net Sales Change over Prior Year
Prescription
Drug
Consumer
Health Care
InjectablesActive Material Science SolutionsDigital HealthTotal
Reported Net Sales Growth24 %22 %3 %(13)%477 %15 %
Currency Effects (1)(1)%(3)%(1)%— %(11)%(2)%
Acquisitions— %— %(1)%— %— %— %
Core Sales Growth23 %19 %%(13)%466 %13 %
Net sales for the first sixthree months of 2023 increased by 9% to $746.7 million compared to $682.7 million in the first six months of 2022. Changes in currency rates negatively impacted net sales by 1%, while the acquisition of Metaphase did not have a significant impact during the first six months of 2023. Therefore, core sales increased by 10% in the first six months of 20232024 compared to the same period in the prior year. Strong core sales growth for our products to the prescription and consumer health care markets more than compensated for lower sales to the injectables and active material science solutions markets. Core sales to the prescription drug market increased 29%10% on continued strong demand for our allergic rhinitis, asthma, pain and emergency medical devices.medicine systems. The 21%2% core sales growth in the consumer health care market was driven by higher demand for our nasal decongestant and saline rinses, eye care and cough and coldrinse solutions. Core sales of our products to the injectables market declined 16%improved by 54% primarily due to the prior year shutdown of operations for the implementation of theirour new ERP systemsystem. We also realized an increase in demand for our biologic and small molecule products which offsets the first quarter. In addition, we were up against strong prior year comparisons as we experienced strong sales oflower demand for our elastomeric components for COVID-19 and other vaccines during the prior year period which did not repeat in the first six months of 2023. Similarly, corevaccine applications. Core sales of our active material science solutions decreased 24%increased 2% mainly on strong prior year period demand forgrowth in our active film products used with at-home COVID-19 antigen test kits that did not repeat during the first six months of 2023.probiotics and oral solid dose applications. Digital Healthhealth currently does not represent a significant percentage of the total Pharma sales.
Six Months Ended June 30, 2023
Net Sales Change over Prior Year
Prescription
Drug
Consumer
Health Care
InjectablesActive Material Science SolutionsDigital HealthTotal
Reported Net Sales Growth28 %21 %(15)%(24)%129 %9 %
Currency Effects (1)%— %%— %%%
Acquisitions— %— %(2)%— %— %— %
Core Sales Growth29 %21 %(16)%(24)%130 %10 %
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Three Months Ended March 31, 2024
Net Sales Change over Prior Year
Prescription
Drug
Consumer
Health Care
InjectablesActive Material Science SolutionsDigital HealthTotal
Reported Net Sales Growth11 %4 %55 %2 %110 %14 %
Currency Effects (1)(1)%(2)%(1)%— %(2)%(1)%
Core Sales Growth10 %%54 %%108 %13 %

(1)Currency effects are calculated by translating last year’s amounts at this year’s foreign exchange rates.
Adjusted EBITDA in the second quarterfirst three months of 20232024 increased 13%21% to $125.9$132.2 million compared to $111.0$109.3 million in the same period of the prior year. Strong prescription and consumer health care productThis positive impact is mainly due to the strong core sales growth more than compensated foracross all divisions as discussed above. During the softness in active material science solutions and the remaining operational inefficienciesprior year, we also incurred additional expenses related to our injectables ERP system implementation. Ourimplementation which did not repeat. Overall, our Adjusted EBITDA margin declinedimproved to 32.2% in the second quarter of 2023 from 32.6% in the second quarter of 2022 mainly due to these residual injectables ERP system implementation impacts.
Adjusted EBITDA32.5% in the first sixthree months of 2023 increased 4% to $235.2 million2024 compared to $226.6 million in the same period of the prior year. The positive impact of our strong core sales growth in the prescription drug and consumer healthcare divisions was partially offset by our injectables ERP system implementation and the impact of lower COVID-19 related sales in our injectables and active material science solutions divisions, as discussed above. We were further impacted by the incremental startup costs for the injectables division capacity expansion which led to a lower Adjusted EBITDA margin of 31.5%30.7% in the first sixthree months of 2023 compared to 33.2% in the first six months of 2022.
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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 June 30,Six Months Ended June 30,
Three Months Ended March 31,
2023202220232022
Three Months Ended March 31,
Three Months Ended March 31,20242023
Net Sales
Net Sales
Net SalesNet Sales$329,587 $317,667 $655,976 $626,747 
Adjusted EBITDA (1)Adjusted EBITDA (1)43,100 41,230 80,305 75,780 
Adjusted EBITDA margin (1)Adjusted EBITDA margin (1)13.1 %13.0 %12.2 %12.1 %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".Measures."
ReportedFor the first three months of 2024, reported net sales forof $327.3 million were slightly higher than the quarter ended June 30, 2023 increased 4% to $329.6$326.4 million compared to $317.7 millionreported in the second quarterfirst 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 second quarterfirst three months of 2023. Therefore, core sales increased 3% in the second quarter of 20232024 compared to the same quarter ofperiod in the prior year. Approximately 2% of this growth came fromWhile sales improved in North America, we realized softening demand in our other regions largely attributable to exceptionally strong demand in the pass-through of higher input costs while the remaining increase is due to higher product volumes and tooling sales.prior year period, which sets a challenging benchmark for comparison. Core sales of our products to the beauty market increased 11%during the first three months of 2024 were consistent with the first quarter of the prior year as consumer demandhigher sales of our facial skin care applications, especially in North America, more than compensated for fragrance and color cosmetic applications remained strong. Personal care and home care core sales decreased 6% and 29% mainly due to softness in demand mainly in North America.
Second Quarter 2023
Net Sales Change over Prior Year
Personal
Care
BeautyHome
Care
Total
Reported Net Sales Growth(5)%12 %(28)%4 %
Currency Effects (1)(1)%(1)%(1)%(1)%
Acquisitions— %— %— %— %
Core Sales Growth(6)%11 %(29)%%
For the first six months of 2023, reported net sales increased 5% to $656.0 million compared to $626.7 million in the first six months of the prior year. Changes in currency rates negatively impacted net sales by approximately 1%. Therefore, core sales increased by 6% in the first six months of 2023 compared to the same period in the prior year. Approximately 4% of this growth came from the pass-through of higher input costs while the remaining increase is due to higher product volumes. Core salesfor our color cosmetic products. Sales of our products to the beautyfragrance market increased 14% duringalso improved slightly over the first six months of 2023 on higher salesprior year as we continued to see increasing demand in both prestigeEurope and mass fragrance, along with continued growth for our color cosmetic solutions.Latin America. Personal care core sales decreased 3% as higher demand for4% primarily due to lower sales of our sun care applications was offset by softness in baby and hair care product sales mainly due to customer destocking in North America.personal cleansing applications. Core sales of our home care market products declined 23% mainly due to lowerimproved 2% on higher demand from our haircustomers selling air care and surface cleaner customers.automotive products.
Six Months Ended June 30, 2023
Net Sales Change over Prior Year
Personal
Care
BeautyHome
Care
Total
Three Months Ended March 31, 2024
Net Sales Change over Prior Year
Three Months Ended March 31, 2024
Net Sales Change over Prior Year
Personal
Care
BeautyHome
Care
Total
Reported Net Sales GrowthReported Net Sales Growth(4)%12 %(23)%5 %Reported Net Sales Growth(3)%1 %3 % %
Currency Effects (1)Currency Effects (1)%%— %%Currency Effects (1)(1)%(1)%(1)%(1)%
AcquisitionsAcquisitions— %— %— %— %Acquisitions— %— %— %— %
Core Sales GrowthCore Sales Growth(3)%14 %(23)%%Core Sales Growth(4)%— %%(1)%

(1)Currency effects are calculated by translating last year’s amounts at this year’s foreign exchange rates.
Adjusted EBITDA in the second quarterfirst three months of 20232024 increased 5%11% to $43.1$41.1 million compared to $41.2 million in the same period in the prior year. The increase is mainly due to the sales growth discussed above along with a gain on sale of one of our facilities in Argentina. Our Adjusted EBITDA margin also slightly improved from 13.0% in the second quarter of 2022 to 13.1% during the second quarter of 2023.
Adjusted EBITDA in the first six months of 2023 increased 6% to $80.3 million compared to $75.8$37.2 million reported in the same period in the prior year,year. This increase is mainly due to improved operational improvements and improved sales volumes as discussed above.performance along with benefits realized from our cost management initiatives . Therefore, our Adjusted EBITDA margin improved from 12.1%11.4% in the first sixthree months of 20222023 to 12.2%12.6% during the first sixthree months of 2023.2024.
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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 June 30,Six Months Ended June 30,
Three Months Ended March 31,
2023202220232022
Three Months Ended March 31,
Three Months Ended March 31,20242023
Net Sales
Net Sales
Net SalesNet Sales$175,619 $186,645 $353,251 $380,035 
Adjusted EBITDA (1)Adjusted EBITDA (1)27,772 21,354 53,780 45,537 
Adjusted EBITDA margin (1)Adjusted EBITDA margin (1)15.8 %11.4 %15.2 %12.0 %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".Measures."
Reported sales for the quarter ended June 30, 2023 decreased approximately 6% to $175.6 million compared to $186.6 million in the second quarter of the prior year. Changes in currency rates positively impacted net sales by 1%, while our acquisition of Gulf Closures positively impacted net sales by 1%. Therefore, core sales for the second quarter of 2023 decreased by 8% compared to the same quarter of the prior year. Approximately half the decrease for the current quarter is due to the pass-through of lower input costs while the remaining 4% is due to lower volumes, especially in North America and Latin America. Sales to the food market decreased 7% primarily on softer demand for our sauces and condiments applications. The 2% decrease in beverage market sales is mostly related to lower customer demand for our concentrate applications. Personal care sales declined 17% due to lower demand for our body and hair care closures.
Second Quarter 2023
Net Sales Change over Prior Year
FoodBeveragePersonal CareOther (2)Total
Reported Net Sales Growth(7)%8 %(16)%(6)%(6)%
Currency Effects (1)— %(2)%(1)%— %(1)%
Acquisitions— %(8)%— %— %(1)%
Core Sales Growth(7)%(2)%(17)%(6)%(8)%
Net sales for the first sixthree months of 2023 decreased2024 increased by 7%2% to $353.3$180.8 million compared to $380.0$177.6 million in the first sixthree months of 2022.2023. 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 decreasedincreased by 8%1% in the first sixthree months of 20232024 compared to the same period in the prior year. Approximately 4% of the 8% core sales decrease is due to passing through lower costs. Volumes were also lower as customers continued to work through their inventory levels, primarily in North America and Latin America. Core sales to the food and personal care markets decreased 7%increased 3% and 18%2%, respectively, while core sales to the beverage market increased 1%decreased 4% in the first sixthree months of 20232024 compared to the same period of the prior year. For the food market, we were up againstrealized strong prior year period results, mainly for saucesgrowth in our dry spices and condiment applications, due to strong demand as COVID-19 pandemic-related restrictions eased during the same period last year.food protection applications. The personal care market was also negatively impacted with lower sales ofbenefited from improving demand for our body and hair care applications.products, mainly in North America. The beverage market reported growth mainly from higher demand forexperienced softness due to the timing of some of our juice applications.customer's transition to our new tethered cap closures in compliance with European Union regulations.
Six Months Ended June 30, 2023
Net Sales Change over Prior Year
FoodBeveragePersonal CareOther (2)Total
Three Months Ended March 31, 2024
Net Sales Change over Prior Year
Three Months Ended March 31, 2024
Net Sales Change over Prior Year
FoodBeveragePersonal CareOther (2)Total
Reported Net Sales GrowthReported Net Sales Growth(7)%7 %(18)%(8)%(7)%Reported Net Sales Growth3 %1 %2 %(6)%2 %
Currency Effects (1)Currency Effects (1)— %(1)%— %— %— %Currency Effects (1)— %(1)%— %%— %
AcquisitionsAcquisitions— %(5)%— %— %(1)%Acquisitions— %(4)%— %— %(1)%
Core Sales GrowthCore Sales Growth(7)%%(18)%(8)%(8)%Core Sales Growth%(4)%%(5)%%

(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.
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Adjusted EBITDA in the second quarter of 2023 increased 30% to $27.8 million compared to $21.4 million reported in the same period of the prior year. Operational improvements, along with lower SG&A costs were able to compensate for the lower product sales noted above. Approximately half of our sales decrease was due to passing through lower input costs. These pass-throughs typically do not carry any margin, but the lower sales favorably impact our Adjusted EBITDA margin. Our Adjusted EBITDA margin was also favorably impacted by our sales mix due to increasing demand for food safety products. Therefore, our Adjusted EBITDA margin improved from 11.4% in the second quarter of 2022 to 15.8% during the second quarter of 2023.
Adjusted EBITDA in the first sixthree months of 20232024 increased 18%4% to $53.8$27.2 million compared to $45.5$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 within our new segment structure. As discussed above, approximately half of our sales decrease was due to passing through lower input costs. As these pass-throughs typically do not carry any margin, the lower sales favorably impact our Adjusted EBITDA margin. This along with the favorable mix of products sold described above, leadled to our Adjusted EBITDA margin improving from 12.0%14.6% in the first sixthree months of 20222023 to 15.2%15.0% during the first sixthree months of 2023.2024.
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.
For the quarter ended June 30, 2023, Corporate & Other Adjusted EBITDA increased to $15.5 million of expense from $13.7 million of expense in the second quarter of 2022. This increase is mainly related to higher incentive compensation costs, including accruals related to our current short-term and equity compensation programs.

Corporate & Other Adjusted EBITDA in the first sixthree months of 20232024 increased to $34.3$21.6 million of expense compared to $31.6$18.8 million of expense reported in the same period of the prior year. As mentioned above, thisThis 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 accounting principles generally accepted in the United States of America ("U.S. GAAP"),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 measuremeasures 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.” Changes in netCore sales, excludingwhich 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 acquisitionacquisition-related costs.
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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.
Three Months Ended
June 30, 2023
ConsolidatedAptar PharmaAptar BeautyAptar ClosuresCorporate & OtherNet Interest
Net Sales$895,906 $390,700 $329,587 $175,619 $— $— 
Reported net income$83,047 
Reported income taxes27,831 
Reported income before income taxes110,878 98,100 21,796 14,232 (14,210)(9,040)
Adjustments:
Restructuring initiatives1,943 434 479 440 590 
Net unrealized investment gain(2,891)(2,891)
Adjusted earnings before income taxes109,930 98,534 22,275 14,672 (16,511)(9,040)
Interest expense9,688 9,688 
Interest income(648)(648)
Adjusted earnings before net interest and taxes (Adjusted EBIT)118,970 98,534 22,275 14,672 (16,511)— 
Depreciation and amortization62,267 27,332 20,825 13,100 1,010 
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)$181,237 $125,866 $43,100 $27,772 $(15,501)$— 
Reported net income margin (Reported net income / Reported Net Sales)9.3 %
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)20.2 %32.2 %13.1 %15.8 %
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Three Months EndedThree Months Ended
March 31, 2024March 31, 2024
Consolidated
Consolidated
ConsolidatedAptar PharmaAptar BeautyAptar ClosuresCorporate & OtherNet Interest
Net Sales
Reported net income
Reported net income
Reported net income
Reported income taxes
Reported income taxes
Reported income taxes
Reported income before income taxes
Reported income before income taxes
Reported income before income taxes
Adjustments:
Restructuring initiatives
Restructuring initiatives
Restructuring initiatives
Net investment gain
Net investment gain
Net investment gain
Three Months Ended
June 30, 2022
Adjusted earnings before income taxes
ConsolidatedAptar PharmaAptar BeautyAptar ClosuresCorporate & OtherNet Interest
Net Sales$844,543 $340,231 $317,667 $186,645 $— $— 
Reported net income$63,613 
Reported income taxes25,858 
Reported income before income taxes89,471 87,445 20,459 8,188 (15,628)(10,993)
Adjustments:
Restructuring initiatives428 — 423 — 
Net unrealized investment loss483 483 
Adjusted earnings before income taxes
Adjusted earnings before income taxesAdjusted earnings before income taxes90,382 87,445 20,882 8,193 (15,145)(10,993)
Interest expenseInterest expense11,982 11,982 
Interest incomeInterest income(989)(989)
Adjusted earnings before net interest and taxes (Adjusted EBIT)Adjusted earnings before net interest and taxes (Adjusted EBIT)101,375 87,445 20,882 8,193 (15,145)— 
Depreciation and amortizationDepreciation and amortization58,552 23,561 20,348 13,161 1,482 
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)$159,927 $111,006 $41,230 $21,354 $(13,663)$— 
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)
Reported net income margin (Reported net income / Reported Net Sales)
Reported net income margin (Reported net income / Reported Net Sales)
Reported net income margin (Reported net income / Reported Net Sales)Reported net income margin (Reported net income / Reported Net Sales)7.5 %
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)18.9 %32.6 %13.0 %11.4 %
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)
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Three Months EndedThree Months Ended
March 31, 2023March 31, 2023
Six Months Ended
June 30, 2023
ConsolidatedAptar PharmaAptar BeautyAptar ClosuresCorporate & OtherNet Interest
Consolidated
Consolidated
ConsolidatedAptar PharmaAptar BeautyAptar ClosuresCorporate & OtherNet Interest
Net SalesNet Sales$1,755,973 $746,746 $655,976 $353,251 $— $— 
Reported net incomeReported net income$137,633 
Reported net income
Reported net income
Reported income taxesReported income taxes46,514 
Reported income taxes
Reported income taxes
Reported income before income taxes
Reported income before income taxes
Reported income before income taxesReported income before income taxes184,147 180,490 29,228 27,527 (34,502)(18,596)
Adjustments:Adjustments:
Restructuring initiativesRestructuring initiatives13,467 1,565 9,770 962 1,170 
Net unrealized investment gain(3,079)(3,079)
Restructuring initiatives
Restructuring initiatives
Net investment gain
Net investment gain
Net investment gain
Transaction costs related to acquisitionsTransaction costs related to acquisitions255 — 199 56 — 
Transaction costs related to acquisitions
Transaction costs related to acquisitions
Adjusted earnings before income taxes
Adjusted earnings before income taxes
Adjusted earnings before income taxesAdjusted earnings before income taxes194,790 182,055 39,197 28,545 (36,411)(18,596)
Interest expenseInterest expense19,916 19,916 
Interest incomeInterest income(1,320)(1,320)
Adjusted earnings before net interest and taxes (Adjusted EBIT)Adjusted earnings before net interest and taxes (Adjusted EBIT)213,386 182,055 39,197 28,545 (36,411)— 
Depreciation and amortizationDepreciation and amortization121,526 53,109 41,108 25,235 2,074 
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)$334,912 $235,164 $80,305 $53,780 $(34,337)$— 
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)
Reported net income margin (Reported net income / Reported Net Sales)
Reported net income margin (Reported net income / Reported Net Sales)
Reported net income margin (Reported net income / Reported Net Sales)Reported net income margin (Reported net income / Reported Net Sales)7.8 %
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)19.1 %31.5 %12.2 %15.2 %
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)
Net Debt to Net Capital ReconciliationMarch 31,December 31,
20242023
Notes payable, revolving credit facility and overdrafts$164,042 $81,794 
Current maturities of long-term obligations, net of unamortized debt issuance costs271,317 376,426 
Long-Term Obligations, net of unamortized debt issuance costs680,358 681,188 
Total Debt1,115,717 1,139,408 
Less:
Cash and equivalents199,834 223,643 
Net Debt$914,660 $915,765 
Total Stockholders' Equity$2,362,933 $2,321,298 
Net Debt914,660 915,765 
Net Capital$3,277,593 $3,237,063 
Net Debt to Net Capital27.9 %28.3 %
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Six Months Ended
June 30, 2022
ConsolidatedAptar PharmaAptar BeautyAptar ClosuresCorporate & OtherNet Interest
Net Sales$1,689,475 $682,693 $626,747 $380,035 $— $— 
Reported net income$125,984 
Reported income taxes50,113 
Reported income before income taxes176,097 179,651 34,467 18,834 (37,220)(19,635)
Adjustments:
Restructuring initiatives719 — 534 185 — 
Net unrealized investment loss2,574 2,574 
Adjusted earnings before income taxes179,390 179,651 35,001 19,019 (34,646)(19,635)
Interest expense20,912 20,912 
Interest income(1,277)(1,277)
Adjusted earnings before net interest and taxes (Adjusted EBIT)199,025 179,651 35,001 19,019 (34,646)— 
Depreciation and amortization117,217 46,907 40,779 26,518 3,013 
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)$316,242 $226,558 $75,780 $45,537 $(31,633)$— 
Reported net income margin (Reported net income / Reported Net Sales)7.5 %
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)18.7 %33.2 %12.1 %12.0 %
Net Debt to Net Capital ReconciliationJune 30,December 31,
20232022
Notes payable, revolving credit facility and overdrafts$61,838 $3,810 
Current maturities of long-term obligations, net of unamortized debt issuance costs214,257 118,981 
Long-Term Obligations, net of unamortized debt issuance costs949,852 1,052,597 
Total Debt1,225,947 1,175,388 
Less:
Cash and equivalents120,983 141,732 
Net Debt$1,104,943 $1,033,656 
Total Stockholders' Equity$2,188,426 $2,068,204 
Net Debt1,104,943 1,033,656 
Net Capital$3,293,369 $3,101,860 
Net Debt to Net Capital33.6 %33.3 %
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Free Cash Flow ReconciliationFree Cash Flow ReconciliationJune 30,June 30,Free Cash Flow ReconciliationMarch 31,March 31,
20232022
202420242023
Net Cash Provided by OperationsNet Cash Provided by Operations$182,201 $176,654 
Net Cash Provided by Operations
Net Cash Provided by Operations
Capital ExpendituresCapital Expenditures(155,012)(147,262)
Proceeds from Government Grants 12,794 
Free Cash FlowFree Cash Flow$27,189 $42,186 
Free Cash Flow
Free Cash Flow
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. Conversely, a strengthening U.S. dollar relative to foreign currencies has a dilutive translation effect on our financial statements. Any changes in exchange rates on such inter-country sales could materially impact our results of operations. During the secondfirst quarter of 2024, the U.S. dollar weakened compared to all European currencies except the euro, Swiss francRussian ruble and Mexican peso.most Latin American currencies, while it showed strength against most Asian currencies. This resulted in an additive impact on our translated results during the secondfirst quarter of 20232024 when compared to the secondfirst quarter of 2022. For the six months ended June 30, 2023, the U.S. dollar strengthened compared to the major European currencies. This resulted in a dilutive impact on our translated results during the year-to-date period of 2023 when compared to the year-to-date period of 2022.2023.
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. OurAs of March 31, 2024, our estimated stock option expense on a pre-tax basis for the year 20232024 compared to 20222023 is as follows:
20232022
First Quarter$15,042 $13,362 
Second Quarter10,391 8,774 
Third Quarter (estimated for 2023)9,905 9,805 
Fourth Quarter (estimated for 2023)9,604 8,996 
$44,942 $40,937 
20242023
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 low level of leverage relative to others in our industry and our ability to generate strong levels of 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 $122.0$199.8 million at June 30, 2023March 31, 2024 from $142.7$223.6 million at December 31, 2022.2023. Total short and long-term interest-bearing debt of $1.2$1.1 billion at June 30, 2023March 31, 2024 was consistent with the $1.2$1.1 billion at December 31, 2022.2023. The ratio of our Net Debt (interest-bearing debt less cash and cash equivalents) to Net Capital (stockholders’ equity plus Net Debt) increaseddecreased to 33.6%27.9% at June 30, 2023March 31, 2024 from 33.3%28.3% at December 31, 2022.2023. See the reconciliation under "Non-U.S. GAAP Measures".
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Measures."
In the first sixthree months of 2023,2024, our operations provided approximately $182.2$92.3 million in net cash flow compared to $176.7$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 $163.6$76.6 million in cash for investing activities during the first sixthree months of 20232024 compared to $139.1$89.2 million during the same period a year ago. During 2023, approximately $9.4 million was utilized to fund the iD SCENT acquisition and $1.5 million was utilized to fund the Gulf Closures acquisition. Our investment in capital projects net of government grant proceeds increased $20.5decreased $2.2 million during the first sixthree months of 20232024 compared to the first sixthree months of 2022 due to the completion of several large capital projects. Our 2023 estimated cash outlays for capital expenditures net of government grant proceeds are expected to be in the range of approximately $280 million to $300 million.2023.
Financing activities used $35.8 million in cash during the first sixthree months of 20232024 compared to $81.4$24.8 million in cash providedused by financing activities during the same period a year ago. During the first sixthree months of 2023,2024, we paid $49.8$27.1 million of dividends, received $24.3$22.3 million from stock option exercises and purchased $29.0$12.1 million of treasury stock. Additionally, we paid our outstanding contingent consideration obligation for Fusion of $25.3 million of which $22.8 million was treated as a financing outflow. During the first six months of 2022, we received proceeds from long-term obligations of $402.2 million primarily from the issuance of $400 million of our 3.60% Senior Notes due March 2032 and we repaid $144.3 million related to our revolving credit facility and redeemed all $75.0 million of our 3.25% senior unsecured notes.
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 June 30, 2023.March 31, 2024.
On June 30, 2021, we entered into an amended and restated multi-currencyAptar has a revolving credit facility (the "revolving credit facility") with a syndicate of banks to replace the then-existing facility maturing July 2022 (the "prior credit facility") and to amend and restate the unsecured term loan facility extended to our wholly-owned UK subsidiary under the prior credit facility (as amended, the "amended term facility").which matures in June 2026. The revolving credit facility matures in June 2026,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 amended term facility matured in July 2022 and was paid in full. 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. In May 2023 the revolving credit facility was amended to make SOFR the default borrowing rate for USD. 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. As of June 30, 2023, $41.5 million was utilized under the revolving credit facility in the U.S. and €18.0 million ($19.6 million) was utilized by our wholly-owned UK subsidiary. As of December 31, 2022, no balance was utilized under the revolving credit facility in the U.S. and no balance was utilized by our wholly-owned UK subsidiary. 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:
RequirementLevel at June 30, 2023March 31, 2024
Consolidated Leverage Ratio (1)Maximum of 3.50 to 1.001.811.39 to 1.00
Consolidated Interest Coverage Ratio (1)Minimum of 3.00 to 1.0015.5516.75 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 $1.0$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 July 13, 2023,April 11, 2024, the Board of Directors declared a quarterly cash dividend of $0.41 per share payable on August 17, 2023May 16, 2024 to stockholders of record as of July 27, 2023.
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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 20232024 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
Aptar had an exceptionally strong first half ofIn the year due to the tremendous growth ofsecond quarter, we anticipate demand for our pharma proprietary drug delivery systems and our fragrance dispensing technologies. The strengths of these core markets are expectedelastomeric components for biologics to continue intoto grow, and we expect Pharma’s strong performance to continue throughout the third quarter.year. We also expect demand to build for our consumer dispensing technologies in the second quarter as the destocking abates in North America. Additionally, the team has done an excellent job focusingboth Beauty and Closures will continue to focus on reducing costs while growing the top line— an effort that is continuing. Our consistent track record of returning value to shareholders is underscored by our recently announced dividend increase of almost 8%improving operational performance and ongoing share repurchases.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 thirdsecond quarter of 2023,2024, excluding any restructuring expenses, changes in the fair value of equity investments and acquisition costs, to be in the range of $1.23$1.30 to $1.31$1.38 and this guidance is based on an effective tax rate range of 25%22% to 27%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;
our ability to preserve organizational culture and maintain employee productivity in the hybrid work environment prompted by the pandemic;
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;
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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 businesses we have acquired, including contingent consideration valuation;
our ability to build out acquired businesses and integrate the product/service offerings of the acquired entities into our existing product/service 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 difficultiesfailures in complying with government regulation;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, 20222023 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 SouthLatin American currencies. A weakening U.S. dollar relative to foreign currencies has an additive translation effect on our financial condition and results of operations.statements. Conversely, a strengthening U.S. dollar relative to foreign currencies has a dilutive translation effect on our financial condition and results of operations.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 June 30, 2023March 31, 2024 about our forward currency exchange contracts. The majority of the contracts expire before the end of the thirdsecond quarter of 2023.2024.
Buy/SellBuy/SellContract Amount
(in thousands)
Average
Contractual
Exchange Rate
Min / Max
Notional
Volumes
Buy/SellContract Amount
(in thousands)
Average
Contractual
Exchange Rate
Min / Max
Notional
Volumes
EUR / USDEUR / USD$21,778 1.0915 20,014 - 22,939
EUR / USD
EUR / USD$26,625 1.0880 19,759 - 26,625
EUR / BRLEUR / BRL11,294 5.6900 10,857 - 11,294EUR / BRL10,462 5.4857 5.4857 10,462 - 10,61110,462 - 10,611
EUR / CNY7,500 7.4402 7,496 - 9,872
CZK / EURCZK / EUR10,189 0.0398 6,882 - 10,189
MXN / USDMXN / USD5,800 0.0551 5,000 - 7,000MXN / USD5,000 0.0580 0.0580 3,000 - 5,0003,000 - 5,000
EUR / THBEUR / THB4,774 37.1352 4,774 - 4,982EUR / THB4,662 38.4185 38.4185 4,662 - 4,8064,662 - 4,806
CZK / EUR2,373 0.0421 2,373 - 5,029
USD / CNYUSD / CNY3,899 7.1453 3,899 - 6,649
EUR / MXNEUR / MXN2,373 18.6155 1,085 - 2,373
CHF / EURCHF / EUR1,205 1.0561 1,205 - 4,369
USD / EURUSD / EUR2,004 0.9128 1,578 - 2,004USD / EUR1,012 0.9189 0.9189 1,012 - 3,7981,012 - 3,798
USD / CNY1,100 6.9688 1,100 - 4,000
CHF - EUR660 1.0257 660 - 1,947
GBP - EUR441 1.1382 441 - 1,303
EUR - CHF210 0.9791 0 - 210
THB / EURTHB / EUR960 0.0264 960 - 989
EUR / GBPEUR / GBP631 0.8573 0 - 631
GBP / EURGBP / EUR504 1.1650 354 - 582
USD / MXNUSD / MXN500 16.8656 0 - 500
CHF / USDCHF / USD316 1.1423 0 - 324
EUR / CHFEUR / CHF225 0.9598 0 - 225
EUR / CZKEUR / CZK174 25.2453 0 - 174
GBP / USDGBP / USD86 1.2624 0 - 86
TotalTotal$57,934 
As of June 30, 2023,March 31, 2024, we have recorded the fair value of foreign currency forward exchange contracts of $1.0$0.3 million in prepaid and other and $0.9$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 $15.6$18.3 million reported in aAccountsccounts 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 June 30, 2023.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
NoDuring 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 June 30, 2023March 31, 2024 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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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 June 30, 2023,March 31, 2024, the Plan purchased 3,81310,820 shares of our common stock on behalf of the participants at an average price of $115.12,$140.02, for an aggregate amount of $439 thousand,$1.5 million, and sold no12,923 shares of our common stock on behalf of the participants.participants at an average price of $137.25, for an aggregate amount of $1.8 million. At June 30, 2023,March 31, 2024, the Plan owned 131,803111,843 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 and six months ended June 30, 2023,March 31, 2024, we repurchased approximately 8186 thousand shares for $9.3 million and 252 thousand shares for $29.0 million, respectively.$12.1 million. As of June 30, 2023,March 31, 2024, there was $79.2$48.6 million of authorized share repurchases remaining under the existing authorization.
The following table summarizes our purchases of our securities for the quarter ended June 30, 2023:March 31, 2024:
PeriodTotal Number Of Shares PurchasedAverage Price Paid Per ShareTotal Number Of Shares Purchased As Part Of Publicly Announced Plans Or ProgramsDollar Value Of Shares That May Yet Be Purchased Under The Plans Or Programs
(in millions)
4/1 - 4/30/23$— $88.5 
5/1 - 5/31/2331,500115.23 31,50084.9 
6/1 - 6/30/2349,500114.75 49,50079.2 
Total81,000$114.94 81,000$79.2 
PeriodTotal Number Of Shares PurchasedAverage Price Paid Per ShareTotal Number Of Shares Purchased As Part Of Publicly Announced Plans Or ProgramsDollar Value Of Shares That May Yet Be Purchased Under The Plans Or Programs
(in millions)
1/1 - 1/31/24$— $60.7 
2/1 - 2/29/2438,300139.48 38,30055.3 
3/1 - 3/31/2447,300142.35 47,30048.6 
Total85,600$141.07 85,600$48.6 

ITEM 5. OTHER INFORMATION
Rule 10b5-1 Plan Elections
During the three months ended June 30, 2023,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.
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ITEM 6. EXHIBITS
Exhibit 10.110.1*
Exhibit 10.2
Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 32.2
Exhibit 101
The following information from our Quarterly Report on Form 10-Q for the secondfirst quarter of fiscal 2023,2024, filed with the SEC on July 28, 2023,April 26, 2024, formatted in Inline Extensible Business Reporting Language (XBRL): (i) the Cover Page, (ii) the Condensed Consolidated Statements of Income – Three and Six Months Ended June 30,March 31, 2024 and 2023, and 2022, (iii) the Condensed Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 30,March 31, 2024 and 2023, and 2022, (iv) the Condensed Consolidated Balance Sheets – June 30, 2023March 31, 2024 and December 31, 2022,2023, (v) the Condensed Consolidated Statements of Changes in Equity – Three and Six Months Ended June 30,March 31, 2024 and 2023, and 2022, (vi) the Condensed Consolidated Statements of Cash Flows - SixThree Months Ended June 30,March 31, 2024 and 2023 and 2022 and (vii) the Notes to Condensed Consolidated Financial Statements.
Exhibit 104Cover Page Interactive Data File (embedded within the Inline XBRL document).
*Filed or furnished herewith.
**Management contract or compensatory plan or arrangement.

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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: July 28, 2023April 26, 2024

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