Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 15, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity File Number | 1-11846 | ||
Entity Registrant Name | AptarGroup, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-3853103 | ||
Entity Address, Address Line One | 265 EXCHANGE DRIVE, SUITE 100 | ||
Entity Address, City or Town | CRYSTAL LAKE | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60014 | ||
City Area Code | 815 | ||
Local Phone Number | 477-0424 | ||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | ATR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
ICFR Auditor Attestation Flag | true | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 65,163,222 | ||
Entity Public Float | $ 7,230,606,494 | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement to be delivered to stockholders in connection with the Annual Meeting of Stockholders to be held May 5, 2021 are incorporated by reference into Part III of this report. | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000896622 | ||
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Net Sales | $ 2,929,340 | $ 2,859,732 | $ 2,764,761 |
Operating Expenses: | |||
Cost of sales (exclusive of depreciation and amortization shown below) | 1,842,821 | 1,818,398 | 1,812,961 |
Selling, research & development and administrative | 500,229 | 454,617 | 429,955 |
Depreciation and amortization | 220,300 | 194,552 | 171,747 |
Restructuring initiatives | 26,492 | 20,472 | 63,829 |
Total Operating Expenses | 2,589,842 | 2,488,039 | 2,478,492 |
Operating Income | 339,498 | 371,693 | 286,269 |
Other (Expense) Income: | |||
Interest expense | (33,244) | (35,489) | (32,626) |
Interest income | 958 | 4,174 | 7,056 |
Equity in results of affiliates | (1,443) | 135 | (229) |
Miscellaneous, net | (4,614) | 1,556 | 5,550 |
Total Other (Expense) Income | (38,343) | (29,624) | (20,249) |
Income before Income Taxes | 301,155 | 342,069 | 266,020 |
Provision for Income Taxes | 87,065 | 99,842 | 71,254 |
Net Income | 214,090 | 242,227 | 194,766 |
Net Income Attributable to Noncontrolling Interests | (50) | (25) | (21) |
Net Income Attributable to AptarGroup, Inc. | $ 214,040 | $ 242,202 | $ 194,745 |
Net Income Attributable to AptarGroup, Inc. per Common Share: | |||
Basic (in dollars per share) | $ 3.32 | $ 3.81 | $ 3.12 |
Diluted (in dollars per share) | $ 3.21 | $ 3.66 | $ 3 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 214,090 | $ 242,227 | $ 194,766 |
Other Comprehensive Income: | |||
Foreign currency translation adjustments | 79,109 | (8,727) | (62,914) |
Changes in treasury locks, net of tax | 0 | 0 | 17 |
Changes in derivative gains (losses), net of tax | 315 | (37) | 1,547 |
Defined benefit pension plan, net of tax | |||
Actuarial (loss) gain, net of tax | (27,268) | (25,877) | 5,292 |
Prior service cost, net of tax | 1,879 | 320 | (26) |
Amortization of prior service cost included in net income, net of tax | 294 | 2,541 | 533 |
Amortization of net loss included in net income, net of tax | 5,920 | 332 | 4,991 |
Total defined benefit pension plan, net of tax | (19,175) | (22,684) | 10,790 |
Total other comprehensive income (loss) | 60,249 | (31,448) | (50,560) |
Comprehensive Income | 274,339 | 210,779 | 144,206 |
Comprehensive Income Attributable to Noncontrolling Interests | (60) | (21) | (5) |
Comprehensive Income Attributable to AptarGroup, Inc. | $ 274,279 | $ 210,758 | $ 144,201 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and equivalents | $ 300,137 | $ 241,970 |
Short-term investments | 243 | 0 |
Total Cash and equivalents and Short-term investments | 300,380 | 241,970 |
Accounts and notes receivable, less current expected credit loss ("CECL") in 2020 and less allowance for doubtful accounts in 2019 | 566,623 | 558,428 |
Inventories | 379,379 | 375,795 |
Prepaid and other | 122,613 | 115,048 |
Total Current Assets | 1,368,995 | 1,291,241 |
Property, Plant and Equipment: | ||
Land | 28,334 | 25,133 |
Buildings and improvements | 579,616 | 504,328 |
Machinery and equipment | 2,808,623 | 2,521,737 |
Property, Plant and Equipment, Gross | 3,416,573 | 3,051,198 |
Less: Accumulated depreciation | (2,217,825) | (1,963,520) |
Property, Plant and Equipment, Net | 1,198,748 | 1,087,678 |
Other Assets: | ||
Investments in equity securities | 50,087 | 8,396 |
Goodwill | 898,521 | 763,461 |
Intangible assets, net | 344,309 | 291,084 |
Operating lease right-of-use assets | 69,845 | 72,377 |
Miscellaneous | 59,548 | 47,882 |
Total Other Assets | 1,422,310 | 1,183,200 |
Total Assets | 3,990,053 | 3,562,119 |
Current Liabilities: | ||
Notes payable, revolving credit facility and overdrafts | 52,200 | 44,259 |
Current maturities of long-term obligations, net of unamortized debt issuance costs | 65,666 | 65,988 |
Accounts payable, accrued and other liabilities | 662,463 | 573,028 |
Total Current Liabilities | 780,329 | 683,275 |
Long-Term Obligations, net of unamortized debt issuance costs | 1,054,998 | 1,085,453 |
Deferred Liabilities and Other: | ||
Deferred income taxes | 37,242 | 41,388 |
Retirement and deferred compensation plans | 145,959 | 101,225 |
Operating lease liabilities | 52,212 | 55,276 |
Deferred and other non-current liabilities | 68,528 | 23,250 |
Commitments and contingencies | 0 | 0 |
Total Deferred Liabilities and Other | 303,941 | 221,139 |
AptarGroup, Inc. stockholders’ equity | ||
Common stock, value | 695 | 686 |
Capital in excess of par value | 849,161 | 770,596 |
Retained earnings | 1,643,825 | 1,523,820 |
Accumulated other comprehensive loss | (281,709) | (341,948) |
Less: Treasury stock at cost | (361,583) | (381,238) |
Total AptarGroup, Inc. Stockholders’ Equity | 1,850,389 | 1,571,916 |
Noncontrolling interests in subsidiaries | 396 | 336 |
Total Stockholders’ Equity | 1,850,785 | 1,572,252 |
Total Liabilities and Stockholders’ Equity | $ 3,990,053 | $ 3,562,119 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts and notes receivable, less current expected credit loss (in dollars) | $ 5,918 | $ 3,626 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 199,000,000 | 199,000,000 |
Common stock, shares issued (in shares) | 69,500,000 | 68,600,000 |
Treasury stock, shares (in shares) | 4,500,000 | 4,800,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive (Loss)Income | Common Stock Par Value | Treasury Stock | Capital in Excess of Par Value | Non- Controlling Interest |
Balance at beginning of period at Dec. 31, 2017 | $ 1,312,048 | $ 2,937 | $ 1,301,147 | $ 2,937 | $ (253,302) | $ 667 | $ (346,245) | $ 609,471 | $ 310 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 194,766 | 194,745 | 21 | ||||||
Reclassification of stranded tax effects | (6,658) | 6,658 | (6,658) | ||||||
Foreign currency translation adjustments | (62,914) | (62,898) | (16) | ||||||
Changes in unrecognized pension gains (losses) and related amortization, net of tax | 10,790 | 10,790 | |||||||
Changes in treasury locks, net of tax | 17 | 17 | |||||||
Changes in derivative gains (losses), net of tax | 1,547 | 1,547 | |||||||
Stock awards and option exercises | 107,717 | 12 | 31,942 | 75,763 | |||||
Cash dividends declared on common stock | (82,346) | (82,346) | |||||||
Treasury stock purchased | (3,905) | (3,905) | |||||||
Common stock repurchased and retired | (57,786) | (51,315) | (6) | (6,465) | |||||
Balance at end of period at Dec. 31, 2018 | $ 1,422,871 | 1,371,826 | (310,504) | 673 | (318,208) | 678,769 | 315 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | ||||||||
Net income | $ 242,227 | 242,202 | 25 | ||||||
Foreign currency translation adjustments | (8,727) | (8,723) | (4) | ||||||
Changes in unrecognized pension gains (losses) and related amortization, net of tax | (22,684) | (22,684) | |||||||
Changes in treasury locks, net of tax | 0 | ||||||||
Changes in derivative gains (losses), net of tax | (37) | (37) | |||||||
Stock awards and option exercises | 115,307 | 13 | 23,467 | 91,827 | |||||
Cash dividends declared on common stock | (90,208) | (90,208) | |||||||
Treasury stock purchased | (86,497) | (86,497) | |||||||
Balance at end of period at Dec. 31, 2019 | 1,572,252 | $ (1,377) | 1,523,820 | $ (1,377) | (341,948) | 686 | (381,238) | 770,596 | 336 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 214,090 | 214,040 | 50 | ||||||
Foreign currency translation adjustments | 79,109 | 79,099 | 10 | ||||||
Changes in unrecognized pension gains (losses) and related amortization, net of tax | (19,175) | (19,175) | |||||||
Changes in treasury locks, net of tax | 0 | ||||||||
Changes in derivative gains (losses), net of tax | 315 | 315 | |||||||
Stock awards and option exercises | 98,229 | 9 | 19,655 | 78,565 | |||||
Cash dividends declared on common stock | (92,658) | (92,658) | |||||||
Balance at end of period at Dec. 31, 2020 | $ 1,850,785 | $ 1,643,825 | $ (281,709) | $ 695 | $ (361,583) | $ 849,161 | $ 396 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from Operating Activities: | |||
Net income | $ 214,090 | $ 242,227 | $ 194,766 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Depreciation | 180,513 | 166,944 | 156,292 |
Amortization | 39,787 | 27,608 | 15,455 |
Stock-based compensation | 34,148 | 23,893 | 19,561 |
Provision for CECL in 2020 and allowance for doubtful accounts in 2019 and 2018 | 865 | 782 | 923 |
Loss (gain) on disposition of fixed assets | 2,627 | 344 | (770) |
Net gain on remeasurement of equity securities | (64) | 0 | (6,500) |
Deferred income taxes | (8,198) | 8,746 | (23,352) |
Defined benefit plan expense | 23,372 | 15,342 | 19,501 |
Equity in results of affiliates | 1,443 | (135) | 229 |
Change in fair value of contingent consideration | 5,230 | 0 | 0 |
Changes in balance sheet items, excluding effects from foreign currency adjustments: | |||
Accounts and other receivables | 13,455 | 8,811 | (66,968) |
Inventories | 13,722 | 605 | (25,183) |
Prepaid and other current assets | (3,078) | 6,596 | (9,437) |
Accounts payable, accrued and other liabilities | 65,592 | 9,997 | 60,576 |
Income taxes payable | (6,091) | 5,658 | (3,155) |
Retirement and deferred compensation plan liabilities | (7,267) | (3,956) | (22,762) |
Other changes, net | 7 | 995 | 4,452 |
Net Cash Provided by Operations | 570,153 | 514,457 | 313,628 |
Cash Flows from Investing Activities: | |||
Capital expenditures | (245,954) | (242,276) | (211,252) |
Proceeds from sale of property, plant and equipment | 5,261 | 4,301 | 4,466 |
Insurance proceeds | 0 | 0 | 10,631 |
Purchase of short-term investments | (243) | 0 | 0 |
Acquisition of business, net of cash acquired | (164,181) | (106,328) | (527,916) |
Acquisition of intangible assets, net | (6,092) | (4,806) | (611) |
Investment in equity securities | (39,628) | (3,530) | (10,000) |
Proceeds from sale of investment in equity securities | 0 | 16,487 | 0 |
Notes receivable, net | (1,141) | (116) | (779) |
Net Cash Used by Investing Activities | (451,978) | (336,268) | (735,461) |
Cash Flows from Financing Activities: | |||
Proceeds from notes payable and overdrafts | 22,342 | 50,854 | 49,069 |
Repayments of notes payable and overdrafts | (36,314) | (53,269) | (29,994) |
Proceeds and repayments of short term revolving credit facility, net | 27,000 | (52,096) | 81,063 |
Proceeds from long-term obligations | 4,852 | 10,523 | 13,161 |
Repayments of long-term obligations | (64,735) | (67,276) | (72,290) |
Payment of contingent consideration obligation | (2,765) | 0 | 0 |
Dividends paid | (92,658) | (90,208) | (82,346) |
Proceeds from stock option exercises | 68,555 | 90,834 | 88,156 |
Purchase of treasury stock | 0 | (86,497) | (3,905) |
Common stock repurchased and retired | 0 | 0 | (57,786) |
Net Cash Used by Financing Activities | (73,723) | (197,135) | (14,872) |
Effect of Exchange Rate Changes on Cash | 13,545 | (904) | (9,112) |
Net Increase (Decrease) in Cash and Equivalents and Restricted Cash | 57,997 | (19,850) | (445,817) |
Cash and Equivalents and Restricted Cash at Beginning of Period | 246,973 | 266,823 | 712,640 |
Cash and Equivalents and Restricted Cash at End of Period | 304,970 | 246,973 | 266,823 |
Supplemental Cash Flow Disclosure: | |||
Interest paid | 33,317 | 34,422 | 32,005 |
Income taxes paid | $ 93,575 | $ 86,097 | $ 96,048 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Restricted cash included in the line item prepaid and other on the Condensed Consolidated Balance Sheets as shown below represents amounts held in escrow. | ||||
Cash and equivalents | $ 300,137 | $ 241,970 | $ 261,823 | |
Restricted cash included in prepaid and other | 4,833 | 5,003 | 5,000 | |
Total Cash and Equivalents and Restricted Cash shown in the Statement of Cash Flows | $ 304,970 | $ 246,973 | $ 266,823 | $ 712,640 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The accompanying consolidated financial statements include the accounts of AptarGroup, Inc. and our subsidiaries. The terms “AptarGroup”, “Aptar”, “Company”, “we”, “us” or “our” as used herein refer to AptarGroup, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated. Certain previously reported amounts have been reclassified to conform to the current period presentation. AptarGroup’s organizational structure consists of three market-focused business segments which are Pharma, Beauty + Home and Food + Beverage. This is a strategic structure which allows us to be more closely aligned with our customers and the markets in which they operate. In late 2017, Aptar began a business transformation plan to drive profitable sales growth, increase operational excellence, enhance our approach to innovation and improve organizational effectiveness (see Note 21 – Restructuring Initiatives for further details). The primary focus of the plan is the Beauty + Home segment; however, certain global general and administrative functions have also been addressed. During 2020, 2019 and 2018, we recognized approximately $26.5 million, $20.5 million and $63.8 million, respectively, of restructuring costs related to this plan. Beginning July 1, 2018, we have applied highly inflationary accounting for our Argentinian subsidiary pursuant to U.S. GAAP. We have changed the functional currency from the Argentinian peso to the U.S. dollar. We remeasure our peso denominated assets and liabilities using the official rate. In September 2019, the President of Argentina reinstituted exchange controls restricting foreign currency purchases in an attempt to stabilize Argentina’s financial markets. As a result of these currency controls, a legal mechanism known as the Blue Chip Swap emerged in Argentina for reporting entities to transfer U.S. dollars. The Blue Chip Swap rate has diverged significantly from Argentina’s “official rate” due to the economic environment. During the second quarter of 2020, we transferred U.S. dollars into Argentina through the Blue Chip Swap method and we recognized a gain of $1.0 million. This gain helped to offset foreign currency losses due to our Argentinian peso exposure and devaluation against the U.S. dollar. Our Argentinian operations contributed approximately less than 2.0% of consolidated net assets and revenues at and for the year ended December 31, 2020. There are many uncertainties regarding the current COVID-19 pandemic, including the availability, adoption, and effectiveness of a vaccine, the length of time it takes for normal economic and operating conditions to resume, additional governmental actions that may be taken and/or extensions of time for restrictions that have been imposed to date, and numerous other uncertainties. The pandemic has impacted certain markets within our business, our operations and our financial results during the year ended December 31, 2020 including an overall reduction to net sales within those markets. No impairments were recorded as of December 31, 2020 related to the COVID-19 pandemic. While the disruption is currently expected to be temporary, there is uncertainty around the duration. Due to significant uncertainty surrounding the situation, future results could change and therefore our results could be materially impacted. ACCOUNTING ESTIMATES The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). This process requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. CASH AND CASH EQUIVALENTS We consider all investments that are readily convertible to known amounts of cash with an original maturity of three months or less when purchased to be cash equivalents. ACCOUNTS RECEIVABLE AND CURRENT EXPECTED CREDIT LOSSES At December 31, 2020, we reported $567 million of accounts receivable, net of CECL of $5.9 million. The allowance is estimated using reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. Changes in CECL were not material for the year ended December 31, 2020. INVENTORIES Inventories are stated at lower of cost or net realizable value. Costs included in inventories are raw materials, direct labor and manufacturing overhead. INVESTMENTS IN EQUITY SECURITIES We account for our 20% to 50% owned investments using the equity method. Equity investments that do not result in consolidation and are not accounted for under the equity method are measured at fair value. Any related changes in fair value is recognized in net income unless the investments qualify for a practicality exception. In May 2018, we invested $10.0 million in preferred equity stock of Reciprocal Labs Corporation, doing business as Propeller Health. During 2018, we increased the value of this investment by approximately $6.5 million due to fair value inputs. This investment was ultimately sold during January 2019 for an amount of $16.5 million. During August 2019, we also invested an aggregate amount of $3.5 million in two preferred equity investments, Loop and PureCycle, that are accounted for at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. During 2020, we invested an additional $1.4 million in these two equity investments and also received $333 thousand of equity in PureCycle 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 and recorded the gain in miscellaneous income in the Consolidated Statements of Income. During the fourth quarter of 2020, we recognized an other than temporary impairment of $3.0 million on our underlying assets in our Kali Care investment as a result of a reassessment of the future value of the business and continued reduction in operating cash flows. There were no dividends received from affiliated companies in 2020, 2019 and 2018. PROPERTY AND DEPRECIATION Properties are stated at cost. Depreciation is determined on a straight-line basis over the estimated useful lives for financial reporting purposes and accelerated methods for income tax reporting. Generally, the estimated useful lives are 10 to 40 years for buildings and improvements and 3 to 15 years for machinery and equipment. FINITE-LIVED INTANGIBLE ASSETS Finite-lived intangibles, consisting of patents, acquired technology, customer relationships, trademarks and trade names and license agreements acquired in purchase transactions, are capitalized and amortized over their useful lives which range from 1 to 20 years. IMPAIRMENT OF LONG-LIVED ASSETS Long-lived assets, such as property, plant and equipment and finite-lived intangibles, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss is recognized when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset (if any) are less than the carrying value of the asset. GOODWILL The Company has historically evaluated the excess of purchase price over the fair value of the net assets acquired (“goodwill”) for impairment annually as of December 31 or more frequently if impairment indicators arose in accordance with Accounting Standards Codification (“ASC”) Topic 350, “Intangibles - Goodwill and Other.” In the fourth quarter of 2019, the Company changed the date of its annual assessment of goodwill to October 1 for all reporting units. The change in testing date for goodwill is a change in accounting principle, which management believes is preferable as the new date of the assessment better aligns with the Company’s budgeting process and will create a more efficient and timely process surrounding the impairment tests. The change in the assessment date does not delay, accelerate or avoid a potential impairment charge. The Company has determined that it is impracticable to objectively determine projected cash flows and related valuation estimates that would have been used as of each October 1 of prior reporting periods without the use of hindsight. As such, the Company prospectively applied the change in annual goodwill impairment testing date from October 1, 2019. We believe that the accounting estimates related to determining the fair value of our reporting units is a critical accounting estimate because: (1) it is highly susceptible to change from period to period because it requires management to make assumptions about the future cash flows for each reporting unit over several years, and (2) the impact that recognizing an impairment would have on the assets reported on our balance sheet as well as our results of operations could be material. Management’s determination of the fair value of our reporting units, based on future cash flows for the reporting units, requires significant judgment and the use of estimates and assumptions related to projected revenue growth rates, the terminal growth factor, as well as the discount rate. Actual cash flows in the future may differ significantly from those forecasted today. The estimates and assumptions for future cash flows and its impact on the impairment testing of goodwill is a critical accounting estimate. Management believes goodwill in purchase transactions has continuing value. Goodwill is not amortized and must be tested annually, or more frequently as circumstances dictate, for impairment. The annual goodwill impairment test may first consider qualitative factors to determine whether it is more likely than not (i.e., greater than 50 percent chance) that the fair value of a reporting unit is less than its book value. This is sometimes referred to as the “step zero” approach and is an optional step in the annual goodwill impairment analysis. Management has performed this qualitative assessment as of October 1, 2019 and December 31, 2018 for each of our reporting units. Based on our review of macroeconomic, industry, and market events and circumstances as well as the overall financial performance of the reporting units, we determined that it was more likely than not that the fair value of these reporting units was greater than their carrying amounts. Due to the passage of time since the last quantitative assessment, management determined it appropriate to calculate the fair value of the reporting units and compare with their associated carrying amounts (the "step one" approach) as of October 1, 2020. Based on this quantitative analysis, we determined the fair value of our reporting units are not less than their carrying value and therefore no impairment of goodwill is required. DERIVATIVES INSTRUMENTS AND HEDGING ACTIVITIES Derivative financial instruments are recorded in the Consolidated Balance Sheets at fair value as either assets or liabilities. Changes in the fair value of derivatives are recorded in each period in earnings or other comprehensive income, depending on whether a derivative is designated and effective as part of a hedge transaction. RETIREMENT OF COMMON STOCK During 2020, we did not repurchase any shares of our common stock. In 2019, we repurchased 779 thousand shares, all of which were returned to treasury stock. Common stock was reduced by the number of shares retired at $0.01 par value per share. We allocate the excess purchase price over par value between additional paid-in capital and retained earnings. RESEARCH & DEVELOPMENT EXPENSES Research and development costs, net of any customer funded research and development or government research and development credits, are expensed as incurred. These costs amounted to $92.5 million, $82.8 million and $75.3 million in 2020, 2019 and 2018, respectively. 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 financial accounting purposes. To the extent that these differences create timing differences between the tax basis of an asset or liability and its reported amount in the financial statements, an appropriate provision for deferred income taxes is made. With the exception of pre-2020 earnings in Italy, Switzerland, and Colombia, we maintain our assertion that the cash and distributable reserves at our non-U.S. affiliates are indefinitely reinvested. Under current U.S. tax laws, all of our non-U.S. earnings are subject to U.S. taxation. We will provide for the necessary withholding and local income taxes when management decides that an affiliate should make a distribution. These decisions are made taking into consideration the financial requirements of the non-U.S. affiliates and the global cash management goals of the Company. 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. See Note 6 – Income Taxes for more information. We are subject to taxation and file income tax returns in the U.S. federal jurisdiction and many state and foreign jurisdictions. We believe that an adequate provision has been made for any adjustments that may result from tax examinations. 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 Consolidated Financial Statements. TRANSLATION OF FOREIGN CURRENCIES The functional currencies of the majority of our foreign operations are the local currencies. Assets and liabilities of our foreign operations are translated into U.S. dollars at the rates of exchange on the balance sheet date. Sales and expenses are translated at the average rates of exchange prevailing during the year. The related translation adjustments are accumulated in a separate section of Stockholders’ Equity. Realized and unrealized foreign currency transaction gains and losses are reflected in income, as a component of miscellaneous income and expense, and represented losses of $5.9 million, $1.7 million and $1.7 million in 2020, 2019 and 2018, respectively. STOCK-BASED COMPENSATION Accounting standards require the application of the non-substantive vesting approach which means that an award is fully vested when the employee’s retention of the award is no longer contingent on providing future service. Under this approach, compensation costs are recognized over the requisite service period of the award instead of ratably over the vesting period stated in the grant. As such, costs are recognized immediately if the employee is retirement eligible on the date of grant or over the period from the date of grant until retirement eligibility if retirement eligibility is reached before the end of the vesting period stated in the grant. See Note 16 – Stock-Based Compensation for more information. REVENUE RECOGNITION At inception of customer contracts, we assess the goods and services promised in order to identify a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, we consider all the goods or services promised in the contract, whether explicitly stated or implied based on customary business practices. For a contract that has more than one performance obligation, we allocate the total contract consideration to each distinct performance obligation on a relative standalone selling price basis. Revenue is recognized when (or as) the performance obligations are satisfied (i.e., when the customer obtains control of the good or service). The majority of our revenues are derived from product, tooling and service contract sales; however, we also receive revenues from license, exclusivity and royalty arrangements, which collectively are not material to the results. See specific discussions about methods of accounting for control transfers of product, tooling and service contract sales in Note 2 – Revenue. LEASES We determine if an arrangement is a lease at inception. Operating lease assets are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities are included in accounts payable accrued and other liabilities in our Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, current maturities of long-term obligations and long-term obligations in our Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. We use the implicit rate when readily determinable. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date of the lease in determining the present value of lease payments. The operating lease ROU asset includes any lease payments made as well as initial direct costs incurred and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. For certain equipment leases, we account for the lease and non-lease components as a single lease component. We have elected not to recognize right-of-use assets and lease liabilities that arise from short-term leases (a lease whose term is 12 months or less and does not include a purchase option that we are reasonably certain to exercise). Certain vehicle lease contracts include guaranteed residual value that is considered in the determination of lease classification. The probability of having to satisfy a residual value guarantee is not considered for the purpose of lease classification, but is considered when measuring a lease liability. ADOPTION OF RECENT ACCOUNTING PRONOUNCEMENTS 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 February 2016, the FASB issued a new standard related to leases to increase transparency and comparability among organizations. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases, as our accounting for finance leases remained substantially unchanged. Under the new standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. We adopted the standard on January 1, 2019 using a modified retrospective transition, with the effective date method. Under this method, financial results reported in periods prior to 2019 are not recast. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows companies to carry forward their historical lease classification. We also implemented internal controls and key system functionality to enable the preparation of financial information on adoption. The impact of adoption of the standard to previously reported results is shown below. Balance at December 31, Adjustments Balance at January 1, Consolidated Balance Sheets Operating lease right-of-use assets $ — $ 83,222 $ 83,222 Prepaid and other 118,245 (1,383) 116,862 Property, plant and equipment 991,613 5,876 997,489 Current maturities of long-term obligations, net of unamortized debt issuance costs 62,678 2,631 65,309 Accounts payable, accrued and other liabilities 525,199 20,508 545,707 Operating lease liabilities — 61,331 61,331 Long-term obligations, net of unamortized debt issuance costs 1,125,993 3,245 1,129,238 In May 2014, the FASB issued ASU 2014-9, which amended the guidance for recognition of revenue from customer contracts. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in the amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. On January 1, 2018, we adopted this standard and all the related amendments (the “new revenue standard”) for all contracts. This adoption was accounted for using the modified retrospective method. We recognized the cumulative effect of initially applying the new revenue standard as a $2.9 million adjustment to the January 1, 2018 opening balance of retained earnings. A majority of our sales revenue continues to be recognized when products are shipped from our manufacturing facilities. For certain custom product and tooling sales where revenue was previously recognized when the products were shipped, we now recognize revenue over the time required to manufacture the product or build the tool in accordance with the new revenue standard. We also have certain extended warranty contracts, which under the new standard are considered a separate performance obligation and are required to be deferred and recognized into revenue over the life of the agreement. In January 2016, the FASB issued ASU 2016-1, which provides guidance on the classification and measurement of financial assets and liabilities (equity securities and financial liabilities) under the fair value option and the presentation and disclosure requirements for financial instruments. In February 2018, ASU 2018-3 was issued to clarify certain aspects of the guidance issued in January 2016. The guidance modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any related changes in fair value in net income unless the investments qualify for the new practicality exception. A measurement alternative exists for those equity investments that do not have a readily determinable fair value. These investments may be measured at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The standard also includes a new impairment model for equity investments without readily determinable fair values. The new model is a single-step model under which we are required to perform a qualitative assessment each reporting period to identify impairment. When a qualitative assessment indicates that an impairment exists, we will estimate the fair value of the investment and recognize in current earnings an impairment loss equal to the difference between the fair value and the carrying amount of the equity investment. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017. We adopted the requirements of this standard during the first quarter of 2018. In November 2016, the FASB issued ASU 2016-18, which provides guidance to address the diversity in the classification and presentation of changes in restricted cash on the statement of cash flows. The amendments in this standard require that a statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017. We adopted the requirements of this standard during the first quarter of 2018 and appropriate disclosures are included on the statement of cash flows to the extent applicable. In January 2017, the FASB issued ASU 2017-4, which provides guidance to simplify how an entity is required to test goodwill for impairm ent by eliminating Step 2 from the goodwill impairment test. As a result, impairment charges are required for the amount by which a reporting unit’s carrying amount exceeds its fair value up to the amount of its allocated goodwill. We adopted the standard on January 1, 2020 and did not record any impairment charges. In February 2018, the FASB issued ASU 2018-2, which provides guidance on the reclassification of certain tax effects from accumulated other comprehensive income. This guidance allows for the reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act ("TCJA"). The new standard is effective for fiscal years and interim periods beginning after December 15, 2018. We elected to early adopt this standard in the fourth quarter of 2018. As part of this adoption, we elected to reclassify $6.7 million of stranded income tax effects of the TCJA from accumulated other comprehensive income to retained earnings at the beginning of the fourth quarter of 2018. In August 2018, the FASB issued ASU 2018-15 to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, the amendments require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The amendments also require the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement, which includes reasonably certain renewals. We adopted the standard on January 1, 2020 and no material impacts were noted. In August 2018, the FASB issued ASU 2018-13, which amends disclosure requirements for fair value measurements. The new standard modifies disclosure requirements including removing requirements to disclose the valuation process for Level 3 measurements and adding requirements to disclose the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements and the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. We adopted the standard on January 1, 2020 and no material impacts were noted. In August 2018, the FASB issued ASU 2018-14, which amends disclosure requirements for defined benefit pension and other postretirement plans. The amendments in this update remove disclosures that are no longer considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. We adopted the standard during the fourth quarter of 2020 and appropriate disclosures are included in the notes to the financials statement to the extent applicable. The provisions of the new standard do not have any effect on the Company's financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as well as the clarifying amendments subsequently issued. We applied the guidance using a modified retrospective approach and accordingly recognized an amount of $1.4 million as the cumulative adjustment to opening retained earnings in the first quarter of 2020. This is based on management's best estimates of specific losses on individual exposures particularly on current trade receivables, as well as the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. On an ongoing basis, we will contemplate forward-looking economic conditions in recording lifetime expected credit losses for our financial assets measured at cost, such as our trade receivables and certain other assets. Other accounting standards that have been issued by the FASB or other standards-setting bodies did not have a material impact on our consolidated financial statements. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenue by segment and geography based on shipped from locations for the years ended December 31, 2020, 2019, and 2018 is as follows: For the Year Ended December 31, 2020 Segment Europe Domestic Latin Asia Total Pharma $ 808,834 $ 350,265 $ 23,157 $ 43,523 $ 1,225,779 Beauty + Home 681,936 384,004 141,846 90,365 1,298,151 Food + Beverage 113,286 231,717 29,040 31,367 405,410 Total $ 1,604,056 $ 965,986 $ 194,043 $ 165,255 $ 2,929,340 For the Year Ended December 31, 2019 Segment Europe Domestic Latin Asia Total Pharma $ 729,882 $ 297,871 $ 26,344 $ 36,954 $ 1,091,051 Beauty + Home 792,255 310,411 160,048 90,000 1,352,714 Food + Beverage 116,332 228,486 33,996 37,153 415,967 Total $ 1,638,469 $ 836,768 $ 220,388 $ 164,107 $ 2,859,732 For the Year Ended December 31, 2018 Segment Europe Domestic Latin Asia Total Pharma $ 696,079 $ 196,928 $ 25,485 $ 36,160 $ 954,652 Beauty + Home 816,359 334,881 178,392 96,750 1,426,382 Food + Beverage 115,040 194,527 31,742 42,418 383,727 Total $ 1,627,478 $ 726,336 $ 235,619 $ 175,328 $ 2,764,761 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 receipt of 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 are as follows: Balance as of December 31, 2019 Balance as of December 31, 2020 Increase/ (opening) (closing) Contract asset (current) $ 16,245 $ 16,109 $ (136) Contract asset (long-term) $ — $ — $ — Contract liability (current) $ 79,305 $ 87,188 $ 7,883 Contract liability (long-term) $ 9,779 $ 21,584 $ 11,805 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 customer’s payment. The total amount of revenue recognized during 2020 against contract liabilities is $107.7 million, including $57.8 million relating to contract liabilities at the beginning of the year. Current contract assets and long-term contract assets are included within the Prepaid and Other and Miscellaneous assets, respectively, while current contract liabilities and long-term contract liabilities are included within Accounts Payable, Accrued and Other Liabilities and Deferred and Other Non-current Liabilities, respectively, within our 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 identifies 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 it will be entitled. Product Sales We primarily manufacture and sell drug delivery, dispensing, sealing, and active packaging solutions. The amount of consideration is typically fixed for such customers. At the time of delivery, the customer is invoiced the agreed-upon price. Revenue from product sales is typically recognized upon manufacture or shipment, when control of the goods transfers to the customer. To determine when the control transfers, we typically assess, among other things, the shipping terms of the contract, shipping being one of the indicators of transfer of control. A majority of product sales are sold FOB shipping point. For FOB shipping point shipments, 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. With respect to FOB destination sales, 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 recognizes revenue over time by measuring progress towards completion using the Output Method based on the number of products produced. As we normally make our products to a customer’s order, the time between production and shipment of our products is typically within a few weeks. We believe this measurement provides a faithful depiction of the transfer of goods as the costs incurred reflect the value of the products produced. As a part of its 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 material 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. At December 31, 2019, $515 thousand of unearned revenue associated with outstanding contracts was reported in Accounts Payable, Accrued and Other Liabilities. At December 31, 2020, the unearned amount was $536 thousand. We expect to recognize approximately $136 thousand of the unearned amount in 2021 and $400 thousand thereafter. Service Sales We also provide services to our pharmaceutical customers. As with product sales, we recognize revenue based on completion of each performance obligation of the service contract. 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. Current uncertainty in credit and market conditions due to the COVID-19 pandemic may slow our collection efforts if customers experience significant difficulty accessing credit and paying their obligations, which may lead to higher than normal accounts receivable and increased CECL charges Practical Expedients Significant financing component: We elected not to adjust the promised consideration for the time value of money for contracts where the difference between the time of payment and performance is one year or less. Remaining performance obligations: We elected not to disclose the aggregate amount of the transaction price allocated to remaining performance obligations for our contracts that are one year or less, as the revenue is expected to be recognized within the next year. In addition, we have elected not to disclose the expected consideration related to performance obligations where we recognize revenue in the amount it has a right to invoice (e.g., usage-based pricing terms). |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories, by component net of reserves, consisted of: 2020 2019 Raw materials $ 116,029 $ 111,653 Work in process 115,870 123,750 Finished goods 147,480 140,392 Total $ 379,379 $ 375,795 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill for the year ended December 31, 2020 are as follows by reporting segment: Pharma Beauty + Food + Corporate Total Goodwill $ 359,883 $ 223,933 $ 128,279 $ 1,615 $ 713,710 Accumulated impairment losses — — — (1,615) (1,615) Balance as of December 31, 2018 $ 359,883 $ 223,933 $ 128,279 $ — $ 712,095 Acquisition 57,934 — — — 57,934 Foreign currency exchange effects (4,167) (2,275) (126) — (6,568) Goodwill $ 413,650 $ 221,658 $ 128,153 $ 1,615 $ 765,076 Accumulated impairment losses — — — (1,615) (1,615) Balance as of December 31, 2019 $ 413,650 $ 221,658 $ 128,153 $ — $ 763,461 Acquisition 463 103,130 — — 103,593 Foreign currency exchange effects 22,618 8,323 526 — 31,467 Goodwill $ 436,731 $ 333,111 $ 128,679 $ 1,615 $ 900,136 Accumulated impairment losses — — — (1,615) (1,615) Balance as of December 31, 2020 $ 436,731 $ 333,111 $ 128,679 $ — $ 898,521 We have completed the annual impairment analysis of our reporting units as of October 1, 2020 using a discounted cash flow analysis for each of our reporting units. Based on our review of macroeconomic, industry, and market events and circumstances as well as the overall financial performance of the reporting units, we determined that it was more likely than not that the fair value of these reporting units was greater than their carrying amounts. No impairment was recognized during the years ended December 31, 2020, 2019 or 2018. The table below shows a summary of intangible assets for the years ended December 31, 2020 and 2019. 2020 2019 Weighted Average Gross Accumulated Net Gross Accumulated Net Amortized intangible assets: Patents 7.2 $ 2,861 $ (1,477) $ 1,384 $ 2,804 $ (1,318) $ 1,486 Acquired technology 12.6 111,854 (36,943) 74,911 100,511 (25,430) 75,081 Customer relationships 13.3 286,644 (56,714) 229,930 217,934 (33,924) 184,010 Trademarks and trade names 6.3 46,174 (17,437) 28,737 35,015 (11,003) 24,012 License agreements and other 19.3 19,208 (9,861) 9,347 16,153 (9,658) 6,495 Total intangible assets 12.6 $ 466,741 $ (122,432) $ 344,309 $ 372,417 $ (81,333) $ 291,084 Aggregate amortization expense for the intangible assets above for the years ended December 31, 2020, 2019 and 2018 was $39,787, $27,608 and $15,455, respectively. Future estimated amortization expense for the years ending December 31 is as follows: 2021 $ 40,195 2022 39,615 2023 38,728 2024 34,954 2025 and thereafter 190,817 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 December 31, 2020. |
ACCOUNTS PAYABLE, ACCRUED AND O
ACCOUNTS PAYABLE, ACCRUED AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE, ACCRUED AND OTHER LIABILITIES | ACCOUNTS PAYABLE, ACCRUED AND OTHER LIABILITIES At December 31, 2020 and 2019, accounts payable, accrued and other liabilities consisted of the following: 2020 2019 Accounts payable, principally trade $ 243,742 $ 192,739 Accrued employee compensation costs 177,144 163,839 Customer deposits and other unearned income 87,052 86,820 Other accrued liabilities 154,525 129,630 Total $ 662,463 $ 573,028 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 22, 2017, the U.S. enacted the TCJA, which significantly changed U.S. tax law. The TCJA lowered the Company’s U.S. statutory federal income tax rate from 35% to 21% effective January 1, 2018, while imposing a deemed repatriation tax on previously deferred foreign income. Income before income taxes consists of: Years Ended December 31, 2020 2019 2018 United States $ 91,555 $ 94,612 $ 34,404 International 209,600 247,457 231,616 Total $ 301,155 $ 342,069 $ 266,020 The provision (benefit) for income taxes is composed of: Years Ended December 31, 2020 2019 2018 Current: U.S. Federal $ 9,934 $ 2,129 $ 10,273 State/Local 3,094 883 877 International 82,235 88,084 83,456 $ 95,263 $ 91,096 $ 94,606 Deferred: U.S. Federal/State $ (2,270) $ 4,670 $ (17,019) International (5,928) 4,076 (6,333) $ (8,198) $ 8,746 $ (23,352) Total $ 87,065 $ 99,842 $ 71,254 A reconciliation of the provision for income taxes with the amount computed by applying the statutory federal income tax rate of 21% to income before provision for income taxes is as follows: Years Ended December 31, 2020 2019 2018 Income tax at statutory rate $ 63,243 $ 71,835 $ 55,864 State income taxes (benefits), net of federal tax effect 2,396 2,622 (1,516) Investment incentives (483) (2,530) (1,900) Tax resolutions 820 (1,915) (3,400) Excess tax benefits from share-based compensation (11,625) (15,370) (13,400) Deferred tax charges (benefits), incl. tax rate changes 4,110 — (2,800) U.S. Global Intangible Low-Taxed Income ("GILTI") and Base Erosion Anti-Abuse Tax ("BEAT") (3,909) (1,485) 5,625 U.S. tax reform - transition tax — — (2,570) Valuation allowance 1,332 10,623 3,170 Rate differential on earnings of foreign operations 24,901 32,657 29,024 Other items, net 6,280 3,405 3,157 Actual income tax provision $ 87,065 $ 99,842 $ 71,254 Effective income tax rate 28.9 % 29.2 % 26.8 % The 2020 provision for income tax was favorably impacted by excess tax benefits on deductible share-based compensation. The tax provision for 2020 reflects a $11.6 million benefit from this item. The 2020 tax provision reflects a one-time adjustment of U.S. GILTI tax in response to regulations issued by the U.S. Department of the Treasury in July 2020. The 2020 provision also reflects a $3.0 million deferred tax charge to reflect a prior year true-up. Since a majority of our pretax income is earned in higher tax jurisdictions, this mix of income has an unfavorable tax rate impact. The 2019 tax provision was favorably impacted by excess tax benefits on deductible share-based compensation. The tax provision for 2019 reflects a $15.4 million benefit from this item. The mix of pretax income has an unfavorable impact, because the majority of our income is earned in higher tax jurisdictions. Additionally, we have incurred losses in jurisdictions where we cannot tax effect the loss. The 2018 tax provision was favorably impacted by excess tax benefits on deductible stock compensation. The tax provision for 2018 reflects a $13.4 million benefit from this item. The mix of pretax income has an unfavorable impact, reflecting that the majority of our income is earned in higher tax jurisdictions. The U.S. GILTI tax and BEAT also had a $5.6 million unfavorable impact. Significant deferred tax assets and liabilities as of December 31, 2020 and 2019 are composed of the following temporary differences: 2020 2019 Deferred Tax Assets: Net operating loss carryforwards $ 19,353 $ 24,941 Operating and finance leases 24,529 25,440 Pension liabilities 36,085 24,925 Share-based compensation 5,946 6,082 U.S. federal tax credits 8,826 8,575 U.S. state tax credits 7,011 7,881 Vacation and bonus 12,307 7,645 Research and development 8,992 7,539 Inventory 4,854 5,993 Workers compensation 3,353 3,835 Other 16,643 16,496 Total gross deferred tax assets $ 147,899 $ 139,352 Less valuation allowance (23,105) (23,320) Net deferred tax assets $ 124,794 $ 116,032 Deferred Tax Liabilities: Acquisition related intangibles $ 57,295 $ 62,851 Depreciation and amortization 27,737 28,284 Operating and finance leases 26,549 27,555 Other 8,044 6,215 Total gross deferred tax liabilities $ 119,625 $ 124,905 Net deferred tax assets (liabilities) $ 5,169 $ (8,873) We evaluate the deferred tax assets and record a valuation allowance when it is believed it is more likely than not that the benefit will not be realized. We have established a valuation allowance for $16.7 million of the $19.4 million of tax effected net operating loss carryforwards. These losses are generally in locations that have not produced cumulative three year operating profit. A valuation allowance of $3.7 million has also been established against the $7.0 million of U.S. state tax credit carryforwards. The U.S. federal tax credits will expire in the years 2026 and 2027. There is no expiration date on $15.8 million of the tax-effected net operating loss carryforwards and $3.6 million (tax effected) will expire in the years 2020 to 2038. The U.S. state tax credit carryforwards of $7.0 million (tax effected) will expire in the years 2021 to 2034. None of the non-U.S. unremitted earnings will be subject to U.S. taxation. Aside from the pre-2020 earnings in Italy, Switzerland, and Colombia, we maintain our assertion that all other cash and distributable reserves at our non-U.S. affiliates will continue to be indefinitely reinvested. We estimate the amount of additional local and withholding tax that would be payable on distributions to be in the range of $15 million to $25 million. We have not provided for taxes on certain tax-deferred income related to a foreign operation. The income arose predominately from government grants. Taxes of approximately $1.5 million would become payable in the event the terms of the grant are not fulfilled. Income Tax Uncertainties We provide a liability for the amount of tax benefits realized from uncertain tax positions. A reconciliation of the beginning and ending amount of income tax uncertainties is as follows: 2020 2019 2018 Balance at January 1 $ 3,647 $ 3,559 $ 3,080 Increases based on tax positions for the current year 212 412 360 Increases based on tax positions of prior years 790 663 610 Settlements — (558) (491) Lapse of statute of limitations (145) (429) — Balance at December 31 $ 4,504 $ 3,647 $ 3,559 The amount of income tax uncertainties that, if recognized, would impact the effective tax rate is approximately $4.5 million. We estimate that it is reasonably possible that the liability for uncertain tax positions will decrease no more than $2.6 million in the next twelve months from the resolution of various uncertain positions as a result of the completion of tax audits, litigation and the expiration of the statute of limitations in various jurisdictions. We recognize interest and penalties accrued related to unrecognized tax benefits as a component of income taxes. As of December 31, 2020, 2019 and 2018, we had approximately $3.6 million, $1.7 million and $1.9 million, respectively, accrued for the payment of interest and penalties, of which approximately none and $0.2 million were recognized as a tax benefit for the years ended 2020 and 2019, respectively, and $0.4 million was recognized in income tax expense in the year ended December 31, 2018. Aptar or its subsidiaries file income tax returns in the U.S. Federal jurisdiction and various state and foreign jurisdictions. The major tax jurisdictions we file in, with the years still subject to income tax examinations, are listed below: Major Tax Tax Years United States — Federal 2017-2020 United States — State 2011-2020 France 2017-2020 Germany 2016-2020 Italy 2015-2020 China 2011-2020 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Notes Payable, Revolving Credit Facility and Overdrafts At December 31, 2020 and 2019, our notes payable, revolving credit facility and overdrafts, consisted of the following: 2020 2019 Notes payable 0.0% $ 200 $ 1,436 Revolving credit facility 1.45% 52,000 25,000 Overdrafts 5.68% - 7.82% — 17,823 $ 52,200 $ 44,259 We maintain a multi-currency revolving credit facility with two tranches that matures in July 2022 which provides for unsecured financing of up to $300 million that is available in the U.S. and up to €150 million that is available to our wholly-owned UK subsidiary. We utilized $52 million under our U.S. facility and no balance was utilized under our euro-based revolving credit facility as of December 31, 2020. We utilized $25 million under our U.S. facility and no balance was utilized under our euro-based revolving credit facility as of December 31, 2019. There are no compensating balance requirements associated with our revolving credit facility. Each borrowing under the credit facility will bear interest at rates based on LIBOR, prime rates or other similar rates, in each case plus an applicable margin. A facility fee on the total amount of the facility is also payable quarterly, regardless of usage. The applicable margins for borrowings under the credit facility and the facility fee percentage may change from time to time depending on changes in AptarGroup’s consolidated leverage ratio. We incurred approximately $2.5 million and $1.5 million in interest and fees related to this credit facility during both 2020 and 2019. Average borrowings under the revolving credit facility and notes payable were $108.1 million and $34.1 million for 2020 and 2019, respectively. The average annual interest rate on the revolving credit facility and notes payable was 1.5% and 1.6% for 2020 and 2019, respectively. 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 December 31, 2020. Long-Term Obligations At December 31, 2020 and 2019, our long-term obligations consisted of the following: December 31, 2020 December 31, 2019 Notes payable 0.00% – 10.90%, due in monthly and annual installments through 2028 $ 14,002 $ 19,220 Senior unsecured notes 3.2%, due in 2022 75,000 75,000 Senior unsecured debts 1.7% USD floating swapped to 1.36% EUR fixed, equal annual installments through 2022 112,000 168,000 Senior unsecured notes 3.5%, due in 2023 125,000 125,000 Senior unsecured notes 1.0%, due in 2023 122,100 112,170 Senior unsecured notes 3.4%, due in 2024 50,000 50,000 Senior unsecured notes 3.5%, due in 2024 100,000 100,000 Senior unsecured notes 1.2%, due in 2024 244,200 224,340 Senior unsecured notes 3.6%, due in 2025 125,000 125,000 Senior unsecured notes 3.6%, due in 2026 125,000 125,000 Finance Lease Liabilities 30,025 29,952 Unamortized debt issuance costs (1,663) (2,241) $ 1,120,664 $ 1,151,441 Current maturities of long-term obligations (65,666) (65,988) Total long-term obligations $ 1,054,998 $ 1,085,453 The aggregate long-term maturities, excluding finance lease liabilities, which are discussed in Note 8, due annually for the next five years and thereafter are: 2021 $ 61,408 2022 135,550 2023 249,788 2024 395,215 2025 125,251 Thereafter 125,090 Covenants Our revolving credit facility and corporate long-term obligations require us to satisfy certain financial and other covenants including: Requirement Level at December 31, 2020 Consolidated Leverage Ratio (1) Maximum of 3.50 to 1.00 1.63 to 1.00 Consolidated Interest Coverage Ratio (1) Minimum of 3.00 to 1.00 16.86 to 1.00 (1) Definitions of ratios are included as part of the revolving credit facility agreement and the private placement agreements. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASE COMMITMENTS We lease certain warehouse, plant, and office facilities as well as certain equipment under noncancelable operating and finance leases expiring at various dates through the year 2034. 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 (“SG&A”). The components of lease expense for the years ended December 31, 2020 and 2019 were as follows: Year Ended December 31, 2020 2019 Operating lease cost $ 23,968 $ 23,410 Finance lease cost: Amortization of right-of-use assets $ 3,982 $ 4,217 Interest on lease liabilities 1,414 1,353 Total finance lease cost $ 5,396 $ 5,570 Short-term lease and variable lease costs $ 9,421 $ 8,629 Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 23,484 $ 21,872 Operating cash flows from finance leases 1,372 1,245 Financing cash flows from finance leases 4,436 4,730 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 24,477 $ 15,226 Finance leases 3,642 15,957 Supplemental balance sheet information related to leases was as follows: December 31, December 31, Operating Leases Operating lease right-of-use assets $ 69,845 $ 72,377 Accounts payable, accrued and other liabilities $ 18,804 $ 16,578 Operating lease liabilities 52,212 55,276 Total operating lease liabilities $ 71,016 $ 71,854 Finance Leases Property, plant and equipment, gross $ 49,760 $ 47,020 Accumulated depreciation (7,258) (4,271) Property, plant and equipment, net $ 42,502 $ 42,749 Current maturities of long-term obligations, net of unamortized debt issuance cost $ 4,258 $ 4,318 Long-term obligations, net of unamortized debt issuance cost 25,767 25,634 Total finance lease liabilities $ 30,025 $ 29,952 Weighted Average Remaining Lease Term (in years) Operating leases 5.0 6.1 Finance leases 7.2 7.0 Weighted Average Discount Rate Operating leases 4.21 % 5.05 % Finance leases 4.85 % 5.13 % Maturities of lease liabilities as of December 31, 2020, were as follows: Operating Finance Year 1 $ 21,351 $ 5,542 Year 2 18,278 4,378 Year 3 10,999 3,509 Year 4 7,844 2,973 Year 5 6,388 2,918 Thereafter 14,880 18,080 Total lease payments 79,740 37,400 Less imputed interest (8,724) (7,375) Total $ 71,016 $ 30,025 As of December 31, 2020, we have additional operating leases that have not yet commenced of $0.1 million and no finance leases that have not yet commenced. These operating leases will commence in 2021 with lease terms of 3 to 4 years. |
LEASE COMMITMENTS | LEASE COMMITMENTS We lease certain warehouse, plant, and office facilities as well as certain equipment under noncancelable operating and finance leases expiring at various dates through the year 2034. 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 (“SG&A”). The components of lease expense for the years ended December 31, 2020 and 2019 were as follows: Year Ended December 31, 2020 2019 Operating lease cost $ 23,968 $ 23,410 Finance lease cost: Amortization of right-of-use assets $ 3,982 $ 4,217 Interest on lease liabilities 1,414 1,353 Total finance lease cost $ 5,396 $ 5,570 Short-term lease and variable lease costs $ 9,421 $ 8,629 Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 23,484 $ 21,872 Operating cash flows from finance leases 1,372 1,245 Financing cash flows from finance leases 4,436 4,730 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 24,477 $ 15,226 Finance leases 3,642 15,957 Supplemental balance sheet information related to leases was as follows: December 31, December 31, Operating Leases Operating lease right-of-use assets $ 69,845 $ 72,377 Accounts payable, accrued and other liabilities $ 18,804 $ 16,578 Operating lease liabilities 52,212 55,276 Total operating lease liabilities $ 71,016 $ 71,854 Finance Leases Property, plant and equipment, gross $ 49,760 $ 47,020 Accumulated depreciation (7,258) (4,271) Property, plant and equipment, net $ 42,502 $ 42,749 Current maturities of long-term obligations, net of unamortized debt issuance cost $ 4,258 $ 4,318 Long-term obligations, net of unamortized debt issuance cost 25,767 25,634 Total finance lease liabilities $ 30,025 $ 29,952 Weighted Average Remaining Lease Term (in years) Operating leases 5.0 6.1 Finance leases 7.2 7.0 Weighted Average Discount Rate Operating leases 4.21 % 5.05 % Finance leases 4.85 % 5.13 % Maturities of lease liabilities as of December 31, 2020, were as follows: Operating Finance Year 1 $ 21,351 $ 5,542 Year 2 18,278 4,378 Year 3 10,999 3,509 Year 4 7,844 2,973 Year 5 6,388 2,918 Thereafter 14,880 18,080 Total lease payments 79,740 37,400 Less imputed interest (8,724) (7,375) Total $ 71,016 $ 30,025 As of December 31, 2020, we have additional operating leases that have not yet commenced of $0.1 million and no finance leases that have not yet commenced. These operating leases will commence in 2021 with lease terms of 3 to 4 years. |
RETIREMENT AND DEFERRED COMPENS
RETIREMENT AND DEFERRED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
RETIREMENT AND DEFERRED COMPENSATION PLANS | RETIREMENT AND DEFERRED COMPENSATION PLANSWe 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, the domestic plans were amended to provide that no individual who became an employee after December 31, 2020 could become a participant and that no employee whose employment terminated and who was rehired after December 31, 2020 may accrue benefits under the plans with respect to the period of employment which begins on the date that his reemployment commences. These employees will instead be 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 will still be eligible for the domestic pension plans and will still continue to accrue plan benefits after this date. The following table presents the changes in the benefit obligations and plan assets for the most recent two years for our domestic and foreign plans. Domestic Plans Foreign Plans 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 227,275 $ 180,803 $ 120,490 $ 104,911 Service cost 14,278 11,093 7,311 5,921 Interest cost 7,046 7,381 1,410 2,023 Special termination benefit charge — — — 64 Plan Amendment — — — 18 Curtailment/Settlement — — — (271) Transfer — — — 939 Prior service cost — — (2,701) (451) Actuarial loss (gain) 38,175 39,209 1,809 13,575 Benefits paid (14,303) (11,211) (5,145) (4,130) Foreign currency translation adjustment — — 11,252 (2,109) Benefit obligation at end of year $ 272,471 $ 227,275 $ 134,426 $ 120,490 Domestic Plans Foreign Plans 2020 2019 2020 2019 Change in plan assets: Fair value of plan assets at beginning of year $ 188,801 $ 169,958 $ 74,189 $ 68,992 Actual return on plan assets 17,088 29,618 2,008 3,851 Employer contribution 448 436 7,527 6,542 Benefits paid (14,303) (11,211) (5,145) (4,130) Transfer — — — 359 Foreign currency translation adjustment — — 6,508 (1,425) Fair value of plan assets at end of year $ 192,034 $ 188,801 $ 85,087 $ 74,189 Funded status at end of year $ (80,437) $ (38,474) $ (49,339) $ (46,301) The following table presents the funded status amounts recognized in our Consolidated Balance Sheets as of December 31, 2020 and 2019. Domestic Plans Foreign Plans 2020 2019 2020 2019 Non-current assets $ — $ — $ 81 $ 938 Current liabilities (461) (449) (37) (44) Non-current liabilities (79,976) (38,025) (49,383) (47,195) $ (80,437) $ (38,474) $ (49,339) $ (46,301) The following table presents the amounts not recognized as components of periodic benefit cost that are recognized in accumulated other comprehensive loss as of December 31, 2020 and 2019. Domestic Plans Foreign Plans 2020 2019 2020 2019 Net actuarial loss $ 96,440 $ 68,789 $ 40,851 $ 40,442 Net prior service cost — — 675 3,774 Tax effects (22,181) (15,821) (13,466) (14,040) $ 74,259 $ 52,968 $ 28,060 $ 30,176 Changes in benefit obligations and plan assets recognized in other comprehensive income in 2020, 2019 and 2018 are as follows: Domestic Plans 2020 2019 2018 Current year actuarial (loss) gain $ (33,335) $ (21,970) $ 4,611 Amortization of net loss 5,684 1,957 4,873 $ (27,651) $ (20,013) $ 9,484 Foreign Plans 2020 2019 2018 Current year actuarial (loss) gain $ (2,530) $ (11,999) $ 534 Current year prior service cost 2,701 451 (35) Transfer Prior service Cost — (18) — Transfer Actuarial (loss) gain — (126) — Recognition due to curtailment — — 1,692 Amortization of net loss 2,121 1,444 1,716 Amortization of prior service cost 398 449 720 $ 2,690 $ (9,799) $ 4,627 Components of net periodic benefit cost: Domestic Plans 2020 2019 2018 Service cost $ 14,278 $ 11,093 $ 11,396 Interest cost 7,046 7,381 6,878 Expected return on plan assets (12,248) (12,379) (11,257) Amortization of net loss 5,684 1,957 4,873 Net periodic benefit cost $ 14,760 $ 8,052 $ 11,890 Foreign Plans 2020 2019 2018 Service cost $ 7,311 $ 5,921 $ 5,954 Interest cost 1,410 2,023 1,828 Expected return on plan assets (2,620) (2,366) (2,610) Amortization of net loss 2,121 1,444 1,716 Amortization of prior service cost 398 449 720 Net periodic benefit cost $ 8,620 $ 7,471 $ 7,608 Curtailment (8) (246) (59) Special termination benefit charge — 65 62 Total Net periodic benefit cost $ 8,612 $ 7,290 $ 7,611 The accumulated benefit obligation (“ABO”) for our domestic defined benefit pension plans was $249.8 million and $205.3 million at 2020 and 2019, respectively. The ABO for our foreign defined benefit pension plans was $103.1 million and $91.8 million at December 31, 2020 and 2019, respectively. The following table provides the projected benefit obligation (“PBO”), ABO, and fair value of plan assets for all pension plans with an ABO in excess of plan assets as of December 31, 2020 and 2019. Domestic Plans Foreign Plans 2020 2019 2020 2019 Projected benefit obligation $ 272,471 $ 227,275 $ 120,795 $ 92,561 Accumulated benefit obligation 249,831 205,326 89,702 65,062 Fair value of plan assets 192,034 188,801 71,457 46,371 The following table provides the PBO, ABO and fair value of plan assets for all pension plans with a PBO in excess of plan assets as of December 31, 2020 and 2019. Domestic Plans Foreign Plans 2020 2019 2020 2019 Projected benefit obligation $ 272,471 $ 227,275 $ 130,616 $ 102,310 Accumulated benefit obligation 249,831 205,326 98,360 73,943 Fair value of plan assets 192,034 188,801 79,764 55,260 Assumptions: Domestic Plans Foreign Plans 2020 2019 2018 2020 2019 2018 Weighted-average assumptions used to determine benefit obligations at December 31: Discount rate 2.40 % 3.20 % 4.20 % 0.54 % 1.04 % 1.82 % Rate of compensation increase 3.19 % 4.00 % 4.00 % 3.05 % 3.05 % 3.01 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 3.20 % 4.20 % 3.55 % 1.12 % 1.84 % 1.62 % Expected long-term return on plan assets 7.00 % 7.00 % 7.00 % 3.41 % 3.69 % 3.66 % Rate of compensation increase 4.00 % 4.00 % 4.00 % 3.05 % 3.05 % 3.02 % We develop the expected long-term rate of return assumptions based on historical experience and by evaluating input from the plans’ asset managers, including the managers’ review of asset class return expectations and benchmarks, economic indicators and long-term inflation assumptions. In order to determine the 2021 net periodic benefit cost, we expect to use the December 31, 2020 discount rates, December 31, 2020 rates of compensation increase assumptions and the same assumed long-term returns on domestic and foreign plan assets used for the 2020 net periodic benefit cost. Our domestic and foreign pension plan weighted-average asset allocations at December 31, 2020 and 2019 by asset category are as follows: Plan Assets: Domestic Plans Assets at December 31, Foreign Plans Assets at December 31, 2020 2019 2020 2019 Equity securities 48 % 49 % 5 % 4 % Fixed income securities 28 % 29 % 1 % 1 % Corporate debt securities — — 2 % 3 % Infrastructure 7 % 6 % — — Hedge funds 10 % 10 % — — Money market 2 % 1 % — % 3 % Investment Funds — — 92 % 89 % Real estate 5 % 5 % — — Total 100 % 100 % 100 % 100 % Our investment strategy for our domestic and foreign pension plans is to maximize the long-term rate of return on plan assets within an acceptable level of risk. The investment policy strives to have assets sufficiently diversified so that adverse or unexpected results from one security type will not have an unduly detrimental impact on the entire portfolio and accordingly, establishes a target allocation for each asset category within the portfolio. The domestic plan asset allocation is reviewed on a quarterly basis and the foreign plan asset allocation is reviewed annually. Rebalancing occurs as needed to comply with the investment strategy. The domestic plan target allocation for 2021 is 60% equity securities and 40% fixed income securities and infrastructure. The foreign plan target allocation for 2021 is 100% investment funds. 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. Domestic Fair Value Measurement at December 31, 2020 Foreign Fair Value Measurement at December 31, 2020 (In Thousands $) Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Cash and Short-term Securities (a) $ 3,207 $ 3,207 $ — $ — $ 415 $ 415 $ — $ — USD — 3,207 — — — — — — EUR — — — — — 404 — — Others — — — — — 11 — — Equity Securities (a) $ 83,041 $ 83,041 $ — $ — $ 4,107 $ 4,107 $ — $ — U.S. Large Cap Equities — 48,138 — — — — — — U.S. Small Cap Equities — 10,299 — — — — — — International Equities — 24,604 — — — 4,107 — — Fixed Income (a&b) $ 35,691 $ 35,691 $ — $ — $ 834 $ 834 $ — $ — Corporate debts securities $ — $ — $ — $ — $ 1,555 $ 1,555 $ — $ — Euro Corporate Bonds (a) — — — — — 1,555 — — Investment Funds $ — $ — $ — $ — $ 78,176 $ 27,500 $ 50,676 $ — Mutual Funds in Equities (a) — — — — — 4,022 — — Mutual Funds in Bonds (a) — — — — — 22,475 — — Mutual Funds Diversified (a&b) — — — — — 1,003 50,676 — Total Investments in Fair Value Hierarchy $ 121,939 $ 121,939 $ — $ — $ 85,087 $ 34,411 $ 50,676 $ — Investments at Net Asset Value per Share 70,095 — — — — — — — Total Investments $ 192,034 $ 121,939 $ — $ — $ 85,087 $ 34,411 $ 50,676 $ — Domestic Fair Value Measurement at December 31, 2019 Foreign Fair Value Measurement at December 31, 2019 (In Thousands $) Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Cash and Short-term Securities (a) $ 1,988 $ 1,988 $ — $ — $ 2,030 $ 2,030 $ — $ — USD — 1,988 — — — — — — EUR — — — — — 2,012 — — Others — — — — — 18 — — Equity Securities (a) $ 81,997 $ 81,997 $ — $ — $ 2,995 $ 2,995 $ — $ — U.S. Large Cap Equities — 48,580 — — — — — — U.S. Small Cap Equities — 9,921 — — — — — — International Equities — 23,496 — — — 2,995 — — Fixed Income (a&b) $ 35,898 $ 35,898 $ — $ — $ 820 $ 820 $ — $ — Corporate debts securities $ — $ — $ — $ — $ 2,115 $ 2,115 $ — $ — Euro Corporate Bonds (a) — — — — — 2,115 — — Investment Funds $ — $ — $ — $ — $ 66,229 $ 23,797 $ 42,432 $ — Mutual Funds in Equities (a) — — — — — 4,025 — — Mutual Funds in Bonds (a) — — — — — 18,881 — — Mutual Funds Diversified (a&b) — — — — — 891 42,432 — Total Investments in Fair Value Hierarchy $ 119,883 $ 119,883 $ — $ — $ 74,189 $ 31,757 $ 42,432 $ — Investments at Net Asset Value per Share 68,918 — — — — — — — Total Investments $ 188,801 $ 119,883 $ — $ — $ 74,189 $ 31,757 $ 42,432 $ — (a) Based on third party quotation from financial institution. (b) Based on observable market transactions. Contributions Annual cash contributions to fund pension costs accrued under our domestic plans are generally at least equal to the minimum funding amounts required by ERISA. We contributed $0.4 million to our domestic defined benefit plans in 2020 and although we have no minimum funding requirement, we plan to contribute approximately $0.5 million to pay our ongoing SERP annuity contracts in 2021. Contributions to fund pension costs accrued under our foreign plans are made in accordance with local laws or at our discretion. We contributed approximately $7.5 million to our foreign defined benefit plan in 2020 and expect to contribute approximately $0.5 million in 2021. Estimated Future Benefit Payments As of December 31, 2020, we expect the plans to make the following estimated benefit payments relating to our defined benefit plans over the next ten years: Domestic Plans Foreign Plans 2021 $ 12,464 $ 5,514 2022 12,533 2,505 2023 13,297 3,154 2024 14,413 4,591 2025 14,461 7,772 2026 - 2030 78,437 37,211 Other Plans We have a non-qualified supplemental pension plan for domestic employees which provides for pension amounts that would have been payable from our principal domestic pension plan if it were not for limitations imposed by income tax regulations. The liability for this plan, which is not funded, was $16.8 million and $12.6 million at December 31, 2020 and 2019, respectively. This amount is included in the liability for domestic plans shown above. We have a defined contribution 401(k) employee savings plan ("401(k) plan") available to substantially all domestic employees. Company matching contributions are made in cash up to a maximum of 3% of the participating employee’s salary subject to income tax regulations. For each of the years ended December 31, 2020, 2019 and 2018, total contributions made to these plans were approximately $4.3 million, $4.1 million and $3.7 million, respectively. As discussed above, domestic employees hired after December 31, 2020 will no longer be eligible for the pension plans and will instead receive an annual Aptar Retirement Savings Account contribution of 5% of their eligible earnings in the 401(k) plan. We have several foreign defined contribution plans, which require us to contribute a percentage of the participating employee’s salary according to local regulations. For each of the years ended December 31, 2020, 2019 and 2018, total contributions made to these plans were approximately $2.4 million, $2.3 million and $2.4 million, respectively. We have no additional postretirement or postemployment benefit plans. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | 12 Months Ended |
Dec. 31, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) Changes in Accumulated Other Comprehensive Income/(Loss) by Component: Foreign Defined Benefit Derivatives Total Balance - December 31, 2017 $ (185,503) $ (64,595) $ (3,204) $ (253,302) Other comprehensive (loss) income before reclassifications (62,898) 5,266 16,624 (41,008) Amounts reclassified from accumulated other comprehensive income (loss) — 5,524 (15,060) (9,536) Net current-period other comprehensive (loss) income (62,898) 10,790 1,564 (50,544) Reclassification of stranded tax effects — (6,658) — (6,658) Balance - December 31, 2018 $ (248,401) $ (60,463) $ (1,640) $ (310,504) Other comprehensive (loss) income before reclassifications (8,723) (25,557) 8,026 (26,254) Amounts reclassified from accumulated other comprehensive income (loss) — 2,873 (8,063) (5,190) Net current-period other comprehensive (loss) (8,723) (22,684) (37) (31,444) Balance - December 31, 2019 $ (257,124) $ (83,147) $ (1,677) $ (341,948) Other comprehensive income (loss) before reclassifications 79,099 (25,389) (9,172) 44,538 Amounts reclassified from accumulated other comprehensive income — 6,214 9,487 15,701 Net current-period other comprehensive income (loss) 79,099 (19,175) 315 60,239 Balance - December 31, 2020 $ (178,025) $ (102,322) $ (1,362) $ (281,709) Reclassifications Out of Accumulated Other Comprehensive Income/(Loss): Details about Accumulated Other Amount Reclassified from Affected Line in the Statement Year Ended December 31, 2020 2019 2018 Defined Benefit Pension Plans Amortization of net loss $ 7,805 $ 3,401 $ 6,589 (1) Amortization of prior service cost 398 449 720 (1) 8,203 3,850 7,309 Total before tax (1,989) (977) (1,785) Tax benefit $ 6,214 $ 2,873 $ 5,524 Net of tax Derivatives Changes in treasury locks $ — $ — $ 26 Interest Expense Changes in cross currency swap: interest component (1,474) (4,805) (5,150) Interest Expense Changes in cross currency swap: foreign exchange component 10,961 (3,258) (13,025) Miscellaneous, net 9,487 (8,063) (18,149) Total before tax — — 3,089 Tax benefit $ 9,487 $ (8,063) $ (15,060) Net of tax Total reclassifications for the period $ 15,701 $ (5,190) $ (9,536) (1) These accumulated other comprehensive income components are included in the computation of total net periodic benefit costs, net of tax (see Note 9 - Retirement and Deferred Compensation Plans for additional details). |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We maintain a foreign exchange risk management policy designed to establish a framework to protect the value of our non-functional currency denominated transactions from adverse changes in exchange rates. Sales of our products can be denominated in a currency different from the currency in which the related costs to produce the product are denominated. Changes in exchange rates on such inter-country sales or intercompany loans can impact our results of operations. Our policy is not to engage in speculative foreign currency hedging activities, but to minimize our net foreign currency transaction exposure defined as firm commitments and transactions recorded and denominated in currencies other than the functional currency. We may use foreign currency forward exchange contracts, options and cross currency swaps to economically hedge these risks. For derivative instruments designated as hedges, we formally document the nature and relationships between the hedging instruments and the hedged items, as well as the risk management objectives, strategies for undertaking the various hedge transactions, and the method of assessing hedge effectiveness at inception. Quarterly thereafter, we formally assess whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the fair value or cash flows of the hedged item. Additionally, in order to designate any derivative instrument as a hedge of an anticipated transaction, the significant characteristics and expected terms of any anticipated transaction must be specifically identified, and it must be probable that the anticipated transaction will occur. All derivative financial instruments used as hedges are recorded at fair value in the Consolidated Balance Sheets (See Note 12 – 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 Consolidated Statements of Cash Flows. As disclosed in Note 7 – Debt, our wholly owned UK subsidiary borrowed $280 million in term loan borrowings under a new credit facility. In order to mitigate the currency risk of U.S. dollar debt on a euro functional currency entity and to mitigate the risk of variability in interest rates, we entered into a EUR/USD floating-to-fixed cross currency swap on July 20, 2017 in the notional amount of $280 million to effectively hedge the foreign exchange and interest rate exposure on the $280 million term loan. Related to this hedge, approximately $1.4 million and $1.7 million, respectively, of net after-tax loss is included in accumulated other comprehensive loss at December 31, 2020 and 2019. The amount expected to be recognized into earnings during the next 12 months related to the interest component of our cross currency swap, based on prevailing foreign exchange and interest rates at December 31, 2020, is a gain of $0.3 million. The amount expected to be recognized into earnings during the next 12 months related to the foreign exchange component of our cross currency swap is dependent on fluctuations in currency exchange rates. As of December 31, 2020, the fair value of the cross currency swap was a $8.3 million liability. The swap contract expires on July 20, 2022. Hedge of Net Investments in Foreign Operations 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 entities. A weakening U.S. dollar relative to foreign currencies has an additive translation effect on our financial condition and results of operations. Conversely, a strengthening U.S. dollar has a dilutive effect. In some cases we maintain debt in these subsidiaries to offset the net asset exposure. We do not otherwise actively manage this risk using derivative financial instruments. 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. Other As of December 31, 2020, we have recorded the fair value of foreign currency forward exchange contracts of $0.3 million in prepaid and other and $0.1 million in accounts payable, accrued and other liabilities in the balance sheet. All forward exchange contracts outstanding as of December 31, 2020 had an aggregate notional contract amount of $52.5 million. Fair Value of Derivative Instruments in the Consolidated Balance Sheets as of December 31, 2020 and December 31, 2019 December 31, 2020 December 31, 2019 Balance Sheet Derivatives Derivatives Derivatives Derivatives Derivative Assets Foreign Exchange Contracts Prepaid and other $ — $ 322 $ — $ 206 Cross Currency Swap Contract (1) Prepaid and other — — 2,552 — $ — $ 322 $ 2,552 $ 206 Derivative Liabilities Foreign Exchange Contracts Accounts payable, accrued and other liabilities $ — $ 146 $ — $ 401 Cross Currency Swap Contract (1) Accounts payable, accrued and other liabilities 8,309 — — — $ 8,309 $ 146 $ — $ 401 (1) This cross currency swap contract is composed of both an interest component and a foreign exchange component. The Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) for the Fiscal Years Ended December 31, 2020 and December 31, 2019 Derivatives in Cash Amount of Gain (Loss) Location of (Loss) Amount of Gain (Loss) Total Amount 2020 2019 2020 2019 Cross currency swap contract: Interest component $ 1,789 $ 5,103 Interest expense $ 1,474 $ 4,805 $ (33,244) Foreign exchange component (10,961) 3,258 Miscellaneous, net (10,961) 3,258 (4,614) $ (9,172) $ 8,361 $ (9,487) $ 8,063 The Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statements of Income for the Fiscal Years Ended December 31, 2020 and December 31, 2019 Derivatives Not Designated Location of (Loss) Gain Recognized Amount of (Loss) Gain 2020 2019 Foreign Exchange Contracts Other (Expense) Income: $ 337 $ (141) $ 337 $ (141) Gross Amounts Net Amounts Gross Amounts not Offset Gross Financial Cash Collateral Net Description December 31, 2020 Derivative Assets $ 322 $ — $ 322 $ — $ — $ 322 Total Assets $ 322 $ — $ 322 $ — $ — $ 322 Derivative Liabilities $ 8,455 $ — $ 8,455 $ — $ — $ 8,455 Total Liabilities $ 8,455 $ — $ 8,455 $ — $ — $ 8,455 December 31, 2019 Derivative Assets $ 2,758 $ — $ 2,758 $ — $ — $ 2,758 Total Assets $ 2,758 $ — $ 2,758 $ — $ — $ 2,758 Derivative Liabilities $ 401 $ — $ 401 $ — $ — $ 401 Total Liabilities $ 401 $ — $ 401 $ — $ — $ 401 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Authoritative guidelines require the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: • Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. • Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. • Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. As of December 31, 2020, the fair values of our financial assets and liabilities were categorized as follows: Total Level 1 Level 2 Level 3 Assets Foreign exchange contracts (1) $ 322 $ — $ 322 $ — Cross currency swap contract (1) — — — — Total assets at fair value $ 322 $ — $ 322 $ — Liabilities Foreign exchange contracts (1) $ 146 $ — $ 146 $ — Cross currency swap contract (1) 8,309 — 8,309 — Contingent consideration obligation 31,140 — — 31,140 Total liabilities at fair value $ 39,595 $ — $ 8,455 $ 31,140 As of December 31, 2019, the fair values of our financial assets and liabilities were categorized as follows: Total Level 1 Level 2 Level 3 Assets Foreign exchange contracts (1) $ 206 $ — $ 206 $ — Cross currency swap contract (1) 2,552 — 2,552 — Total assets at fair value $ 2,758 $ — $ 2,758 $ — Liabilities Foreign exchange contracts (1) $ 401 $ — $ 401 $ — Contingent consideration obligation 5,930 — — 5,930 Total liabilities at fair value $ 6,331 $ — $ 401 $ 5,930 (1) 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 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 $1.1 billion as of December 31, 2020 and December 31, 2019. As discussed in Note 19 – Acquisitions, we have a contingent consideration obligation to the selling equity holders of: – Fusion in connection with the Fusion Acquisition (as defined herein) based on 2022 cumulative performance targets, – Noble in connection with the Noble Acquisition (as defined herein) based on 2024 cumulative performance targets, and – Gateway in connection with the Gateway Acquisition (as defined herein) based on 2020 and 2022 performance targets. We consider these obligations a Level 3 liability and have estimated the aggregate fair value for these contingent consideration arrangements as follows: December 31, 2020 December 31, 2019 Fusion Acquisition $ 26,910 $ — Noble Acquisition 4,230 2,930 Gateway Acquisition — 3,000 $ 31,140 $ 5,930 Changes in the fair value of these obligations are recorded within selling, research & development and administrative expense in our consolidated statements of income. Significant changes to the inputs, as noted above, can result in a significantly higher or lower fair value measurements. The following table provides a summary of changes in our Level 3 fair value measurements: Balance, December 31, 2018 $ — Acquisition 5,930 Increase (decrease) in fair value recorded in earnings — Payments — Balance, December 31, 2019 $ 5,930 Acquisition 22,745 Increase (decrease) in fair value recorded in earnings 5,230 Payments (2,765) Balance, December 31, 2020 $ 31,140 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIESIn 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 or 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 December 31, 2020. An environmental investigation, undertaken to assess areas of possible contamination, was completed at our facility in Jundiaí, São Paulo, Brazil. The facility is primarily an internal supplier of anodized aluminum components for certain of our dispensing systems. The testing indicated that soil and groundwater in certain areas of the facility were impacted above acceptable levels established by local regulations. In March 2017, we reported the findings to the relevant environmental authority, the Environmental Company of the State of São Paulo – CETESB. Based upon our best estimate, we recorded a reserve of $1.5 million (operating expense) in the first quarter of 2017 relating to this contingency. During 2020 and 2019, we paid approximately $0.1 million and $0.6 million, respectively, and made adjustments to the accrual based on our future anticipated expenditures. As of December 31, 2020, our outstanding reserve is $0.3 million. The ultimate loss associated with this environmental contingency is subject to the investigation and ongoing review of the CETESB. As of December 31, 2020, testing has indicated we are within the range of remediation. We will continue to evaluate the range of likely costs as the investigation proceeds and we have further clarity on the nature and extent of remediation that will be required. We note that the contamination, or any failure to complete any required remediation in a timely manner, could potentially result in fines or penalties. In March 2017, the Supreme Court of Brazil issued a decision that a certain state value added tax should not be included in the calculation of federal gross receipts taxes. The decision reduces our gross receipts tax in Brazil prospectively and, potentially, retrospectively. In June 2020, we received a favorable court decision of $0.7 million for the retrospective right to recover part of our claim. This amount is recorded in cost of sales as a favorable impact of $0.7 million. During the first quarter of 2019, we received a favorable court decision of $2.7 million for the retrospective right to recover part of our claim. This amount is recorded in cost of sales as a favorable impact of $1.7 million and $1.0 million was recognized as interest income. During the fourth quarter of 2018, we recorded an amount of $631 thousand based on the favorable court decision. If the Supreme Court of Brazil grants full retrospective recovery, we estimate remaining potential recoveries of approximately $1.5 million to $7.5 million, including interest. Due to uncertainties around our remaining court recovery claims, we have not recorded any further amounts relating to the retrospective nature of this matter. In December 2019, tax authorities in Brazil notified us of a tax assessment of approximately $6.1 million, including interest and penalties of $2.3 million and $0.8 million, respectively, relating to differences in tax classification codes used for import duties for the period from January 2015 to August 2018. We are vigorously contesting the assessment, including interest and penalties, and have filed an administrative defense appeal in December 2019. In June 2020, an unfavorable decision was issued on the first administrative defense appeal. We filed a second administrative defense appeal in August 2020. We still believe we have a strong defense. Due to uncertainty in the amount of assessment and the timing of our appeal, no liability is recorded as of December 31, 2020. |
STOCK REPURCHASE PROGRAM
STOCK REPURCHASE PROGRAM | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
STOCK REPURCHASE PROGRAM | STOCK REPURCHASE PROGRAM On April 18, 2019, we announced a share repurchase authorization of up to $350 million of common stock. This authorization replaces previous authorizations and has no expiration date. Aptar may repurchase shares through the open market, privately negotiated transactions or other programs, subject to market conditions. In 2020, we did not repurchase any shares. In 2019, we repurchased approximately 779 thousand shares of our outstanding common stock at a total cost of $86.5 million. As of December 31, 2020, there was $278.5 million of authorized share repurchases available to us. |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2020 | |
CAPITAL STOCK | |
CAPITAL STOCK | CAPITAL STOCK We have 199 million authorized shares of common stock. The number of shares of common stock and treasury stock and the share activity were as follows: Common Shares Treasury Shares 2020 2019 2018 2020 2019 2018 Balance at the beginning of the year 68,608,508 67,341,316 66,742,490 4,836,027 4,424,884 4,881,889 Employee option exercises 802,046 1,079,841 1,182,547 (307,976) (367,705) (502,005) Director option exercises 26,551 146,083 — — — — Restricted stock vestings 79,700 41,268 39,691 — — — Common stock repurchases — — — — 778,848 45,000 Common stock repurchased and retired — — (623,412) — — — Balance at the end of the year 69,516,805 68,608,508 67,341,316 4,528,051 4,836,027 4,424,884 The cash dividends paid on the common stock for the years ended December 31, 2020, 2019 and 2018 aggregated $92.7 million, $90.2 million and $82.3 million, respectively. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION We issue restricted stock units (“RSUs”), which consist of time-based and performance-based awards, to employees under stock awards plans approved by stockholders. In addition, RSUs are issued to non-employee directors under a Restricted Stock Unit Award Agreement for Directors pursuant to the Company's 2018 Equity Incentive Plan. RSUs granted to employees vest according to a specified performance period and/or vesting period. Time-based RSUs generally vest over three years. Performance-based RSUs vest at the end of the specified performance period, generally three years, assuming required performance or market vesting conditions are met. Performance-based RSUs have one of two vesting conditions: (1) based on our internal financial performance metrics and (2) based on our total shareholder return (“TSR”) relative to total shareholder returns of an industrial peer group. 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 over one year. 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. Year Ended December 31, 2020 2019 2018 Fair value per stock award $ 94.98 $ 134.97 $ 128.70 Grant date stock price $ 83.93 $ 104.51 $ 89.42 Assumptions: Aptar's stock price expected volatility 23.80 % 16.50 % 12.30 % Expected average volatility of peer companies 48.50 % 31.90 % 27.50 % Correlation assumption 63.50 % 37.40 % 20.20 % Risk-free interest rate 0.31 % 2.19 % 2.42 % Dividend yield assumption 1.72 % 1.30 % 1.43 % A summary of RSU activity as of December 31, 2020, and changes during the period then ended is presented below: Time-Based RSUs Performance-Based RSUs Units Weighted Average Units Weighted Average Nonvested at January 1, 2020 480,729 $ 95.45 181,680 $ 117.26 Granted 241,812 87.13 417,313 93.08 Vested (138,606) 86.84 — — Forfeited (7,737) 97.80 (8,929) 111.60 Nonvested at December 31, 2020 576,198 $ 92.47 590,064 $ 100.27 Included in the December 31, 2020 time-based RSUs are 12,379 units awarded to non-employee directors and 11,490 units vested related to non-employee directors. Year Ended December 31, 2020 2019 2018 Compensation expense $ 32,085 $ 18,197 $ 8,703 Fair value of units vested 12,038 4,566 2,980 Intrinsic value of units vested 14,446 5,360 3,708 The actual tax benefit realized for the tax deduction from RSUs was approximately $5.8 million for the year ended December 31, 2020. As of December 31, 2020, there was $43.3 million of total unrecognized compensation cost relating to RSU awards which is expected to be recognized over a weighted average period of 1.6 years. Historically we issued stock options to our employees and non-employee directors. Beginning in 2019, we no longer issue stock options. Stock options were awarded with the exercise price equal to the market price on the date of grant and generally vest over three years and expire 10 years after grant. For stock option grants, we used historical data to estimate expected life and volatility. The weighted-average fair value of stock options granted under the Stock Awards Plans was $14.82 per share in 2018. These values were estimated on the respective dates of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: Stock Awards Plans: Year Ended December 31, 2018 Dividend Yield 1.5 % Expected Stock Price Volatility 14.2 % Risk-free Interest Rate 2.8 % Expected Life of Option (years) 6.6 A summary of option activity under our stock plans as of December 31, 2020, and changes during the period then ended is presented below: Stock Awards Plans Director Stock Option Plans Options Weighted Average Options Weighted Average Outstanding, January 1, 2020 5,044,180 $ 68.32 135,251 $ 58.45 Granted — — — — Exercised (1,035,649) 60.81 (36,051) 52.00 Forfeited or expired (10,484) 80.13 — — Outstanding at December 31, 2020 3,998,047 $ 70.28 99,200 $ 60.80 Exercisable at December 31, 2020 3,845,344 $ 69.45 99,200 $ 60.80 Weighted-Average Remaining Contractual Term (Years): Outstanding at December 31, 2020 4.8 2.6 Exercisable at December 31, 2020 4.6 2.6 Aggregate Intrinsic Value: Outstanding at December 31, 2020 $ 256,760 $ 7,311 Exercisable at December 31, 2020 $ 249,299 $ 7,311 Intrinsic Value of Options Exercised During the Years Ended: December 31, 2020 $ 59,179 $ 2,318 December 31, 2019 $ 87,251 $ 1,172 December 31, 2018 $ 72,951 $ 2,286 Year Ended December 31, 2020 2019 2018 Compensation expense (included in SG&A) $ 1,693 $ 4,768 $ 8,677 Compensation expense (included in Cost of sales) 370 928 2,181 Compensation expense, Total $ 2,063 $ 5,696 $ 10,858 Compensation expense, net of tax 1,573 4,507 8,391 Grant date fair value of options vested 7,601 17,492 16,518 The reduction in stock option expense is due to our move to RSUs as discussed above. Cash received from option exercises was approximately $68.6 million and the actual tax benefit realized for the tax deduction from option exercises was approximately $14.5 million in the year ended December 31, 2020. As of December 31, 2020, the remaining valuation of stock option awards to be expensed in future periods was $0.2 million and the related weighted-average period over which it is expected to be recognized is 0.2 years. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHAREBasic 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. Share-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 (“EPS”) for the years ended December 31, 2020, 2019 and 2018 are as follows: Income Shares Per Share For the Year Ended December 31, 2020 Basic EPS Income available to common stockholders $ 214,040 64,418 $ 3.32 Effect of Dilutive Securities Stock options 1,800 Restricted stock 439 Diluted EPS Income available to common stockholders $ 214,040 66,657 $ 3.21 For the Year Ended December 31, 2019 Basic EPS Income available to common stockholders $ 242,202 63,574 $ 3.81 Effect of Dilutive Securities Stock options 2,344 Restricted stock 232 Diluted EPS Income available to common stockholders $ 242,202 66,150 $ 3.66 For the Year Ended December 31, 2018 Basic EPS Income available to common stockholders $ 194,745 62,437 $ 3.12 Effect of Dilutive Securities Stock options 2,440 Restricted stock 81 Diluted EPS Income available to common stockholders $ 194,745 64,958 $ 3.00 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We are organized into three reporting segments. Operations that sell dispensing systems, drug delivery systems, sealing solutions and services to the prescription drug, consumer health care, injectables, and active packaging markets form the Pharma segment. Operations that sell dispensing systems and sealing solutions primarily to the beauty, personal care and home care markets form the Beauty + Home segment. Operations that sell dispensing systems and sealing solutions to the food and beverage markets form the Food + Beverage segment. The accounting policies of the segments are the same as those described in Note 1 – Summary of Significant Accounting Policies. The Company evaluates performance of our reporting segments and allocates 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, and other special items. Financial information regarding our reporting segments is shown below: Year Ended December 31, 2020 2019 2018 Total Sales: Pharma $ 1,234,107 $ 1,100,463 $ 955,069 Beauty + Home 1,320,988 1,376,027 1,446,231 Food + Beverage 407,435 418,017 386,689 Total Sales $ 2,962,530 $ 2,894,507 $ 2,787,989 Less: Intersegment Sales: Pharma $ 8,328 $ 9,412 $ 417 Beauty + Home 22,837 23,313 19,849 Food + Beverage 2,025 2,050 2,962 Total Intersegment Sales $ 33,190 $ 34,775 $ 23,228 Net Sales: Pharma $ 1,225,779 $ 1,091,051 $ 954,652 Beauty + Home 1,298,151 1,352,714 1,426,382 Food + Beverage 405,410 415,967 383,727 Net Sales $ 2,929,340 $ 2,859,732 $ 2,764,761 Adjusted EBITDA (1): Pharma $ 428,469 $ 387,483 $ 343,706 Beauty + Home 129,299 181,150 185,926 Food + Beverage 71,995 68,108 57,589 Corporate & Other, unallocated (43,443) (44,406) (36,285) Acquisition-related costs (2) (6,087) (3,927) (23,770) Restructuring Initiatives (3) (26,492) (20,472) (63,829) Depreciation and amortization (4) (220,300) (194,552) (171,747) Interest Expense (33,244) (35,489) (32,626) Interest Income 958 4,174 7,056 Income before Income Taxes $ 301,155 $ 342,069 $ 266,020 Depreciation and Amortization: Pharma $ 75,874 $ 65,590 $ 51,495 Beauty + Home 95,880 82,778 83,546 Food + Beverage 37,768 35,728 27,467 Corporate & Other 10,778 10,456 9,239 Depreciation and Amortization $ 220,300 $ 194,552 $ 171,747 Capital Expenditures: Pharma $ 117,835 $ 89,702 $ 54,433 Beauty + Home 93,980 96,040 101,371 Food + Beverage 29,956 45,130 41,236 Corporate & Other 15,690 13,933 25,739 Transfer of Corporate Technology Expenditures (5) (11,507) (2,529) (11,527) Capital Expenditures $ 245,954 $ 242,276 $ 211,252 Total Assets: Pharma $ 1,549,781 $ 1,422,815 $ 1,324,696 Beauty + Home 1,610,058 1,378,292 1,373,816 Food + Beverage 549,270 534,527 501,700 Corporate & Other 280,944 226,485 177,523 Total Assets $ 3,990,053 $ 3,562,119 $ 3,377,735 (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, and other special items. (2) Acquisition-related costs include transaction costs and purchase accounting adjustments related to acquisitions and investments (see Note 19 – Acquisitions and Note 20 – Investments in Equity Securities for further details). (3) Restructuring Initiatives includes expense items for the years ended December 31, 2020, 2019, and 2018 as follows (see Note 21 – Restructuring Initiatives for further details): Year Ended December 31, 2020 2019 2018 Restructuring Initiatives by Segment Pharma $ 220 $ 632 $ 3,589 Beauty + Home 24,464 17,682 52,244 Food + Beverage 1,903 391 4,185 Corporate & Other (95) 1,767 3,811 Total Restructuring Initiatives $ 26,492 $ 20,472 $ 63,829 (4) Depreciation and amortization includes amortization related to acquisition purchase accounting adjustments. See the reconciliation of Non-U.S. GAAP measures. (5) The transfer of corporate technology expenditures represents amounts of projects managed by corporate for the benefit of specific entities within each segment. Once the projects are complete, all related costs are allocated from corporate to and paid by the appropriate entity and the associated assets are then depreciated at the entity level. Geographic Information The following are net sales and long-lived asset information by geographic area and product information for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Net Sales to Unaffiliated Customers (1): United States $ 965,986 $ 836,768 $ 726,336 Europe: France 854,639 895,110 862,364 Germany 448,405 452,409 474,369 Italy 148,636 141,867 144,044 Other Europe 152,376 149,083 146,701 Total Europe 1,604,056 1,638,469 1,627,478 Other Foreign Countries 359,298 384,495 410,947 Total $ 2,929,340 $ 2,859,732 $ 2,764,761 Property, Plant and Equipment, Net United States $ 298,616 $ 300,820 $ 265,004 Europe: France 426,353 338,288 308,250 Germany 194,553 163,782 154,505 Italy 57,333 53,562 54,978 Other Europe 55,933 63,636 59,411 Total Europe 734,172 619,268 577,144 Other Foreign Countries 165,960 167,590 149,465 Total $ 1,198,748 $ 1,087,678 $ 991,613 (1) Sales are attributed to countries based upon where the sales invoice to unaffiliated customers is generated. No single customer represents 6% or more of our net sales in 2020, 2019 or 2018. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Business Combinations On April 1, 2020, we completed our acquisition (the “Fusion Acquisition”) of 100% of the equity interests of Fusion Packaging, Inc. (“Fusion”) for a purchase price of approximately $163.8 million (net of $1.0 million of cash acquired), which was funded by a draw on our revolving credit facility and cash on hand. Fusion, based in Dallas, TX, is a global leader in the design, engineering and distribution of luxury packaging for the beauty industry. As part of the Fusion Acquisition, we are also obligated to pay to the selling equity holders of Fusion certain contingent consideration based on 2022 cumulative financial performance metrics as defined in the purchase agreement. Based on a projection as of the acquisition date, we estimated the aggregate fair value for this contingent consideration arrangement to be $19.1 million utilizing a Black-Scholes valuation model. During the fourth quarter of 2020, a $3.6 million fair value true-up was recorded as an adjustment to the opening balance of goodwill and contingent consideration liability. As of December 31, 2020, we have estimated the aggregate fair value for this contingent consideration arrangement to be $26.9 million. As of the acquisition date, $5.7 million was held in restricted cash pending the finalization of a working capital adjustment and indemnity escrow. During the third quarter of 2020, $2.0 million related to the working capital escrow was released from restriction, resulting in a refund from seller of $294 thousand and a corresponding decrease to our purchase price and associated goodwill balance. Fusion contributed net sales of $53.4 million and pretax loss of $1.5 million since acquisition for the period ended December 31, 2020 which have been included in the Consolidated Financial Statements within our Beauty + Home segment. Included in pretax loss is $6.9 million of fair value adjustment amortization for inventory sold during 2020 and contingent consideration liability adjustments. On October 31, 2019, we completed our acquisition (the “Noble Acquisition”) of 100% of the equity interests of Noble International Holdings, Inc., Genia Medical, Inc. and JBCB Holdings, LLC (collectively referred to as “Noble”). Noble, based in Orlando, FL, is a leading provider in developing patient-centric advanced drug delivery system training devices including autoinjector, prefilled syringe, onbody and respiratory devices for the world’s leading biopharmaceutical companies and original equipment manufacturers. The purchase price was approximately $62.3 million (net of $1.6 million of cash acquired) and was funded by cash on hand. As part of the Noble Acquisition, we are also obligated to pay to the selling equityholders of Noble certain contingent consideration based on 2024 cumulative financial performance metrics defined in the purchase agreement. Based on projection as of the acquisition date, we estimated the aggregate fair value for this contingent consideration arrangement to be $2.9 million utilizing the Black-Scholes valuation model. As of December 31, 2020, we have estimated the aggregate fair value for this contingent consideration arrangement to be $4.2 million. As of December 31, 2019, $5 million was held in restricted cash pending the finalization of a working capital adjustment and indemnity escrow. During the first quarter of 2020, $1.0 million related to the working capital escrow was released from restriction, resulting in an additional $463 thousand payment due to the seller and a corresponding increase to our purchase price and associated goodwill balance. The results of Noble’s operations have been included in the Consolidated Financial Statements within our Pharma segment since the date of acquisition. On June 5, 2019, we completed our acquisition (the “Nanopharm Acquisition”) of all of the outstanding capital stock of Nanopharm Ltd. (“Nanopharm”). Nanopharm, located in Newport, UK, is a science-driven, leading provider of orally inhaled and nasal drug product design and development services. The purchase price was approximately $38.1 million (net of $1.8 million of cash acquired) and was funded by cash on hand. The results of Nanopharm’s operations have been included in the Consolidated Financial Statements within our Pharma segment since the date of acquisition. On May 31, 2019, we completed our acquisition (the “Gateway Acquisition”) of all of the outstanding equity interests of Gateway Analytical LLC (“Gateway”). Gateway, located in Gibsonia, PA, provides industry-leading particulate detection and predictive analytical services to customers developing injectable medicines. The purchase price was approximately $7.0 million and was funded by cash on hand. As part of the Gateway Acquisition, we are also obligated to pay to the selling equityholder of Gateway certain contingent consideration based on 2020 and 2022 performance targets defined in the purchase agreement. Based on projections as of the acquisition date, we estimated the aggregate fair value for this contingent consideration arrangement to be $3.0 million . During the second quarter 2020, $1.5 million of the contingent consideration accrual was paid as a result of the business meeting their first performance target. During the third quarter 2020, an additional $1.3 million was paid out in full satisfaction of the remaining earn out consideration and a gain of $235 thousand was realized. The results of Gateway’s operations have been included in the Consolidated Financial Statements within our Pharma segment since the date of acquisition. For the year ended December 31, 2020, we recognized $4.6 million in transaction costs related to the Fusion Acquisition. For the year ended December 31, 2019, we recognized $3.4 million in transaction costs related to the acquisitions of Noble, Nanopharm and Gateway. These costs are reflected in the selling, research & development and administration section of the Consolidated Statements of Income and within acquisition-related costs as disclosed in Note 18 – Segment Information. The following table summarizes the assets acquired and liabilities assumed as of the acquisition date at estimated fair value. 2020 2019 Assets Cash and equivalents $ 1,010 $ 3,427 Accounts receivable 4,380 3,504 Inventories 386 — Prepaid and other 1,090 2,478 Property, plant and equipment 2,885 4,267 Goodwill 103,130 59,143 Intangible assets 79,900 52,980 Operating lease right-of-use assets 4,744 — Other miscellaneous assets 65 430 Liabilities Accounts payable, accrued and other liabilities 5,641 5,388 Deferred income taxes — 2,592 Operating lease liabilities 4,207 — Deferred and other non-current liabilities 322 1,598 Net assets acquired $ 187,420 $ 116,651 The following table is a summary of the fair value estimates of the acquired identifiable intangible assets and weighted-average useful lives as of the acquisition date: 2020 2019 Weighted-Average Estimated Weighted-Average Estimated Acquired technology 4 $ 4,600 8 $ 9,160 Customer relationships 13 62,300 11 39,379 Trademarks and trade names 4 10,300 4 2,457 License agreements and other 0.25 2,700 1 1,984 Total $ 79,900 $ 52,980 Goodwill in the amount of $103.1 million and $59.1 million was recorded related to the 2020 and 2019 acquisitions, respectively. For 2020, $103.1 million is included in the Beauty + Home segment and, for 2019, $59.1 million is included in the Pharma segment. Goodwill is calculated as the excess of the consideration transferred over the net assets acquired and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill largely consists of unique relationships, brand equity and proprietary technology that has been established creating niches such as turnkey solutions for the beauty market related to the Fusion Acquisition, analytical services for drug developers related to the Nanopharm Acquisition and Gateway Acquisition and patient onboarding related to the Noble Acquisition, as well as the abilities of the acquired companies to maintain their competitive advantage from a technical viewpoint. Goodwill will not be amortized, but will be tested for impairment at least annually. For 2020 acquisitions, goodwill of $80.6 million will be deductible for tax purposes. For 2019 acquisitions, goodwill of $32.8 million will be deductible for tax purposes. The unaudited pro forma results presented below include the effects of the Fusion Acquisition as if it had occurred as of January 1, 2019. The unaudited pro forma results reflect certain adjustments to the acquisition, such as intangible asset amortization, fair value adjustments for inventory, and financing costs related to the change in our debt structure. The pro forma results do not include any synergies or other expected benefits of the acquisition. Accordingly, the unaudited pro forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the acquisition been completed on the dates indicated. Years Ended December 31, 2020 2019 Net Sales $ 2,937,303 $ 2,937,218 Net Income Attributable to AptarGroup Inc. 215,619 247,263 Net Income per common share — basic 3.35 3.89 Net Income per common share — diluted 3.23 3.74 Asset Acquisition On October 16, 2020, we completed our acquisition of the assets of Cohero Health, Inc. ("Cohero Health") for $2.4 million. The net assets acquired and the results of Cohero Health's operations have been included in the Consolidated Financial Statements within our Pharma segment since the date of acquisition. Based in New York, Cohero Health develops innovative digital tools and technologies to improve respiratory care, reduce avoidable costs and optimize medication utilization. On August 2, 2019, we completed our asset acquisition (the “Bapco Acquisition”) of the remaining 80% ownership interest in the capital stock of Bapco Closures Holdings Limited (“Bapco”), for $3.8 million (net of $2.9 million of cash acquired). The 20% ownership investment previously held in Bapco is now included within the intangible assets acquired. Bapco provides innovative closures sealing technology that provides package integrity and tamper evidence. The results of Bapco’s operations have been included in the Consolidated Financial Statements within our Food + Beverage segment since the date of acquisition . |
INVESTMENT IN EQUITY SECURITIES
INVESTMENT IN EQUITY SECURITIES | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN EQUITY SECURITIES | INVESTMENT IN EQUITY SECURITIES Our investment in equity securities consisted of the following: December 31, 2020 December 31, 2019 Equity Method Investments BTY $ 33,020 $ 119 Sonmol 5,598 — Kali Care 535 3,881 Desotec GmbH 964 858 Other Investments PureCycle 5,397 1,000 Loop 2,894 2,538 Others 1,679 — $ 50,087 $ 8,396 Equity Method Investments Sonmol On April 1, 2020, we invested $5 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”), a pharmaceutical and leading Chinese digital respiratory therapeutics company that provides connected devices for asthma control and develops digital therapies and services platforms targeting chronic respiratory illnesses and other diseases. BTY On January 1, 2020, we acquired 49% of the equity interests in 3 related companies: Suzhou Hsing Kwang, Suqian Hsing Kwang and Suzhou BTY (collectively referred to as “BTY”) for an approximate purchase price of $32 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 subsequent to 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. Kali Care During 2017, we invested $5 million to acquire 20% of the equity interests in Kali Care, a technology company that provides digital monitoring systems for medical devices. Since our investment, we have recognized approximately $1.5 million of our cumulative pro-rata share of operating losses. During the fourth quarter of 2020, we recognized an other than temporary impairment of $3.0 million ($2.3 million after-tax) on our underlying assets in this investment as a result of a reassessment of the future value of the business and continued reduction in operating cash flows. 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 home and food and beverages markets. Other Investments During August 2019, we invested an aggregate amount of $3.5 million in two preferred equity investments in sustainability companies Loop and PureCycle Technologies (“PureCycle”) that are accounted for at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. During 2020, we invested an additional $1.4 million in these two equity investments and also received $333 thousand of equity in PureCycle 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 and recorded the gain in miscellaneous income in the Consolidated Statements of Income. There were no indications of impairment noted in the year ended December 31, 2020 related to these investments. |
RESTRUCTURING INITIATIVES
RESTRUCTURING INITIATIVES | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING INITIATIVES | RESTRUCTURING INITIATIVES In late 2017, we began a business transformation to drive profitable sales growth, increase operational excellence, enhance our approach to innovation and improve organizational effectiveness. The primary focus of the plan is the Beauty + Home segment; however, certain global general and administrative functions have also been addressed. During 2020, we recognized $26.5 million of restructuring costs related to this plan, of which $2.5 million was related to asset impairment. During 2019 and 2018, we recognized approximately $20.5 million and $63.8 million of restructuring costs related to this plan, respectively. Using current exchange rates, we expect total implementation costs of approximately $125 million for these initiatives, including costs that have been recognized to date. The cumulative expense incurred as of December 31, 2020 was $113.0 million. We have also made total capital investments of approximately $50 million related to this plan, with no further significant capital investments expected. As of December 31, 2020 we have recorded the following activity associated with the transformation plan: Beginning Reserve at 12/31/2019 Net Charges for the Year Ended 12/31/2020 Cash Paid Interest and Ending Reserve at 12/31/2020 Employee severance $ 7,090 $ 16,162 $ (14,731) $ (565) $ 7,956 Professional fees and other costs 3,609 7,854 (9,502) 572 2,533 Totals $ 10,699 $ 24,016 $ (24,233) $ 7 $ 10,489 |
QUARTERLY DATA (UNAUDITED)
QUARTERLY DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY DATA (UNAUDITED) | NOTE 22 QUARTERLY DATA (UNAUDITED) Quarterly results of operations and per share information for the years ended December 31, 2020 and 2019 are as follows: Quarter Total First Second Third Fourth Year Ended December 31, 2020 Net sales $ 721,553 $ 699,305 $ 759,153 $ 749,329 $ 2,929,340 Gross profit (1) 227,505 213,494 233,988 231,019 906,006 Net Income 55,250 41,860 63,735 53,245 214,090 Net Income Attributable to AptarGroup, Inc. 55,253 41,839 63,716 53,232 214,040 Per Common Share — 2020: Net Income Attributable to AptarGroup, Inc. Basic $ 0.86 $ 0.65 $ 0.99 $ 0.82 $ 3.32 Diluted 0.84 0.63 0.95 0.79 3.21 Average number of shares outstanding: Basic 64,009 64,262 64,562 64,833 64,418 Diluted 66,111 66,384 66,922 67,265 66,657 Year Ended December 31, 2019 Net sales $ 744,460 $ 742,661 $ 701,278 $ 671,333 $ 2,859,732 Gross profit (1) 233,841 231,739 215,222 193,588 874,390 Net Income 62,999 73,921 56,769 48,538 242,227 Net Income Attributable to AptarGroup, Inc. 63,004 73,915 56,750 48,533 242,202 Per Common Share — 2019: Net Income Attributable to AptarGroup, Inc. Basic $ 1.00 $ 1.16 $ 0.89 $ 0.76 $ 3.81 Diluted 0.96 1.12 0.85 0.73 3.66 Average number of shares outstanding: Basic 62,964 63,471 64,010 63,835 63,574 Diluted 65,349 66,232 66,702 66,192 66,150 (1) Gross profit is defined as net sales less cost of sales and depreciation. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | AptarGroup, Inc SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS For the years ended December 31, 2020, 2019 and 2018 Dollars in thousands Balance at Charged to Charged Deductions Balance 2020 CECL $ 3,626 $ 865 $ 1,647 $ (220) $ 5,918 Deferred tax valuation allowance 23,320 3,085 700 (4,000) 23,105 2019 Allowance for doubtful accounts $ 3,541 $ 782 $ — $ (697) $ 3,626 Deferred tax valuation allowance 11,189 12,058 1,508 (1,435) 23,320 2018 Allowance for doubtful accounts $ 3,161 $ 923 $ — $ (543) $ 3,541 Deferred tax valuation allowance 5,414 4,230 2,604 (1,059) 11,189 (a) Write-off accounts considered uncollectible, net of recoveries and foreign currency impact adjustments. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying consolidated financial statements include the accounts of AptarGroup, Inc. and our subsidiaries. The terms “AptarGroup”, “Aptar”, “Company”, “we”, “us” or “our” as used herein refer to AptarGroup, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated. Certain previously reported amounts have been reclassified to conform to the current period presentation. AptarGroup’s organizational structure consists of three market-focused business segments which are Pharma, Beauty + Home and Food + Beverage. This is a strategic structure which allows us to be more closely aligned with our customers and the markets in which they operate. In late 2017, Aptar began a business transformation plan to drive profitable sales growth, increase operational excellence, enhance our approach to innovation and improve organizational effectiveness (see Note 21 – Restructuring Initiatives for further details). The primary focus of the plan is the Beauty + Home segment; however, certain global general and administrative functions have also been addressed. During 2020, 2019 and 2018, we recognized approximately $26.5 million, $20.5 million and $63.8 million, respectively, of restructuring costs related to this plan. Beginning July 1, 2018, we have applied highly inflationary accounting for our Argentinian subsidiary pursuant to U.S. GAAP. We have changed the functional currency from the Argentinian peso to the U.S. dollar. We remeasure our peso denominated assets and liabilities using the official rate. In September 2019, the President of Argentina reinstituted exchange controls restricting foreign currency purchases in an attempt to stabilize Argentina’s financial markets. As a result of these currency controls, a legal mechanism known as the Blue Chip Swap emerged in Argentina for reporting entities to transfer U.S. dollars. The Blue Chip Swap rate has diverged significantly from Argentina’s “official rate” due to the economic environment. During the second quarter of 2020, we transferred U.S. dollars into Argentina through the Blue Chip Swap method and we recognized a gain of $1.0 million. This gain helped to offset foreign currency losses due to our Argentinian peso exposure and devaluation against the U.S. dollar. Our Argentinian operations contributed approximately less than 2.0% of consolidated net assets and revenues at and for the year ended December 31, 2020. There are many uncertainties regarding the current COVID-19 pandemic, including the availability, adoption, and effectiveness of a vaccine, the length of time it takes for normal economic and operating conditions to resume, additional governmental actions that may be taken and/or extensions of time for restrictions that have been imposed to date, and numerous other uncertainties. The pandemic has impacted certain markets within our business, our operations and our financial results during the year ended December 31, 2020 including an overall reduction to net sales within those markets. No impairments were recorded as of December 31, 2020 related to the COVID-19 pandemic. While the disruption is currently expected to be temporary, there is uncertainty around the duration. Due to significant uncertainty surrounding the situation, future results could change and therefore our results could be materially impacted. |
ACCOUNTING ESTIMATES | ACCOUNTING ESTIMATES The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). This process requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS We consider all investments that are readily convertible to known amounts of cash with an original maturity of three months or less when purchased to be cash equivalents. |
ACCOUNTS RECEIVABLE AND CURRENT EXPECTED CREDIT LOSSES | ACCOUNTS RECEIVABLE AND CURRENT EXPECTED CREDIT LOSSES At December 31, 2020, we reported $567 million of accounts receivable, net of CECL of $5.9 million. The allowance is estimated using reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. Changes in CECL were not material for the year ended December 31, 2020. |
INVENTORIES | INVENTORIES Inventories are stated at lower of cost or net realizable value. Costs included in inventories are raw materials, direct labor and manufacturing overhead. |
INVESTMENTS IN EQUITY SECURITIES | INVESTMENTS IN EQUITY SECURITIES We account for our 20% to 50% owned investments using the equity method. Equity investments that do not result in consolidation and are not accounted for under the equity method are measured at fair value. Any related changes in fair value is recognized in net income unless the investments qualify for a practicality exception. In May 2018, we invested $10.0 million in preferred equity stock of Reciprocal Labs Corporation, doing business as Propeller Health. During 2018, we increased the value of this investment by approximately $6.5 million due to fair value inputs. This investment was ultimately sold during January 2019 for an amount of $16.5 million. During August 2019, we also invested an aggregate amount of $3.5 million in two preferred equity investments, Loop and PureCycle, that are accounted for at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. During 2020, we invested an additional $1.4 million in these two equity investments and also received $333 thousand of equity in PureCycle 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 and recorded the gain in miscellaneous income in the Consolidated Statements of Income. During the fourth quarter of 2020, we recognized an other than temporary impairment of $3.0 million on our underlying assets in our Kali Care investment as a result of a reassessment of the future value of the business and continued reduction in operating cash flows. There were no dividends received from affiliated companies in 2020, 2019 and 2018. |
PROPERTY AND DEPRECIATION | PROPERTY AND DEPRECIATION Properties are stated at cost. Depreciation is determined on a straight-line basis over the estimated useful lives for financial reporting purposes and accelerated methods for income tax reporting. Generally, the estimated useful lives are 10 to 40 years for buildings and improvements and 3 to 15 years for machinery and equipment. |
FINITE-LIVED INTANGIBLE ASSETS | FINITE-LIVED INTANGIBLE ASSETS Finite-lived intangibles, consisting of patents, acquired technology, customer relationships, trademarks and trade names and license agreements acquired in purchase transactions, are capitalized and amortized over their useful lives which range from 1 to 20 years. |
IMPAIRMENT OF LONG-LIVED ASSETS | IMPAIRMENT OF LONG-LIVED ASSETS Long-lived assets, such as property, plant and equipment and finite-lived intangibles, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss is recognized when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset (if any) are less than the carrying value of the asset. |
GOODWILL | GOODWILL The Company has historically evaluated the excess of purchase price over the fair value of the net assets acquired (“goodwill”) for impairment annually as of December 31 or more frequently if impairment indicators arose in accordance with Accounting Standards Codification (“ASC”) Topic 350, “Intangibles - Goodwill and Other.” In the fourth quarter of 2019, the Company changed the date of its annual assessment of goodwill to October 1 for all reporting units. The change in testing date for goodwill is a change in accounting principle, which management believes is preferable as the new date of the assessment better aligns with the Company’s budgeting process and will create a more efficient and timely process surrounding the impairment tests. The change in the assessment date does not delay, accelerate or avoid a potential impairment charge. The Company has determined that it is impracticable to objectively determine projected cash flows and related valuation estimates that would have been used as of each October 1 of prior reporting periods without the use of hindsight. As such, the Company prospectively applied the change in annual goodwill impairment testing date from October 1, 2019. We believe that the accounting estimates related to determining the fair value of our reporting units is a critical accounting estimate because: (1) it is highly susceptible to change from period to period because it requires management to make assumptions about the future cash flows for each reporting unit over several years, and (2) the impact that recognizing an impairment would have on the assets reported on our balance sheet as well as our results of operations could be material. Management’s determination of the fair value of our reporting units, based on future cash flows for the reporting units, requires significant judgment and the use of estimates and assumptions related to projected revenue growth rates, the terminal growth factor, as well as the discount rate. Actual cash flows in the future may differ significantly from those forecasted today. The estimates and assumptions for future cash flows and its impact on the impairment testing of goodwill is a critical accounting estimate. Management believes goodwill in purchase transactions has continuing value. Goodwill is not amortized and must be tested annually, or more frequently as circumstances dictate, for impairment. The annual goodwill impairment test may first consider qualitative factors to determine whether it is more likely than not (i.e., greater than 50 percent chance) that the fair value of a reporting unit is less than its book value. This is sometimes referred to as the “step zero” approach and is an optional step in the annual goodwill impairment analysis. Management has performed this qualitative assessment as of October 1, 2019 and December 31, 2018 for each of our reporting units. Based on our review of macroeconomic, industry, and market events and circumstances as well as the overall financial performance of the reporting units, we determined that it was more likely than not that the fair value of these reporting units was greater than their carrying amounts. |
DERIVATIVES INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVES INSTRUMENTS AND HEDGING ACTIVITIES Derivative financial instruments are recorded in the Consolidated Balance Sheets at fair value as either assets or liabilities. Changes in the fair value of derivatives are recorded in each period in earnings or other comprehensive income, depending on whether a derivative is designated and effective as part of a hedge transaction. |
RETIREMENT OF COMMON STOCK | RETIREMENT OF COMMON STOCK During 2020, we did not repurchase any shares of our common stock. In 2019, we repurchased 779 thousand shares, all of which were returned to treasury stock. Common stock was reduced by the number of shares retired at $0.01 par value per share. We allocate the excess purchase price over par value between additional paid-in capital and retained earnings. |
RESEARCH & DEVELOPMENT EXPENSES | RESEARCH & DEVELOPMENT EXPENSES Research and development costs, net of any customer funded research and development or government research and development credits, are expensed as incurred. These costs amounted to $92.5 million, $82.8 million and $75.3 million in 2020, 2019 and 2018, respectively. |
INCOME TAXES | 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 financial accounting purposes. To the extent that these differences create timing differences between the tax basis of an asset or liability and its reported amount in the financial statements, an appropriate provision for deferred income taxes is made. With the exception of pre-2020 earnings in Italy, Switzerland, and Colombia, we maintain our assertion that the cash and distributable reserves at our non-U.S. affiliates are indefinitely reinvested. Under current U.S. tax laws, all of our non-U.S. earnings are subject to U.S. taxation. We will provide for the necessary withholding and local income taxes when management decides that an affiliate should make a distribution. These decisions are made taking into consideration the financial requirements of the non-U.S. affiliates and the global cash management goals of the Company. 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. See Note 6 – Income Taxes for more information. We are subject to taxation and file income tax returns in the U.S. federal jurisdiction and many state and foreign jurisdictions. We believe that an adequate provision has been made for any adjustments that may result from tax examinations. 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 Consolidated Financial Statements. |
TRANSLATION OF FOREIGN CURRENCIES | TRANSLATION OF FOREIGN CURRENCIES The functional currencies of the majority of our foreign operations are the local currencies. Assets and liabilities of our foreign operations are translated into U.S. dollars at the rates of exchange on the balance sheet date. Sales and expenses are translated at the average rates of exchange prevailing during the year. The related translation adjustments are accumulated in a separate section of Stockholders’ Equity. Realized and unrealized foreign currency transaction gains and losses are reflected in income, as a component of miscellaneous income and expense, and represented losses of $5.9 million, $1.7 million and $1.7 million in 2020, 2019 and 2018, respectively. |
STOCK BASED COMPENSATION | STOCK-BASED COMPENSATION Accounting standards require the application of the non-substantive vesting approach which means that an award is fully vested when the employee’s retention of the award is no longer contingent on providing future service. Under this approach, compensation costs are recognized over the requisite service period of the award instead of ratably over the vesting period stated in the grant. As such, costs are recognized immediately if the employee is retirement eligible on the date of grant or over the period from the date of grant until retirement eligibility if retirement eligibility is reached before the end of the vesting period stated in the grant. See Note 16 – Stock-Based Compensation for more information. |
REVENUE RECOGNITION | REVENUE RECOGNITION At inception of customer contracts, we assess the goods and services promised in order to identify a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, we consider all the goods or services promised in the contract, whether explicitly stated or implied based on customary business practices. For a contract that has more than one performance obligation, we allocate the total contract consideration to each distinct performance obligation on a relative standalone selling price basis. Revenue is recognized when (or as) the performance obligations are satisfied (i.e., when the customer obtains control of the good or service). The majority of our revenues are derived from product, tooling and service contract sales; however, we also receive revenues from license, exclusivity and royalty arrangements, which collectively are not material to the results. See specific discussions about methods of accounting for control transfers of product, tooling and service contract sales in Note 2 – Revenue. |
LEASES | LEASES We determine if an arrangement is a lease at inception. Operating lease assets are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities are included in accounts payable accrued and other liabilities in our Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, current maturities of long-term obligations and long-term obligations in our Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. We use the implicit rate when readily determinable. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date of the lease in determining the present value of lease payments. The operating lease ROU asset includes any lease payments made as well as initial direct costs incurred and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. For certain equipment leases, we account for the lease and non-lease components as a single lease component. We have elected not to recognize right-of-use assets and lease liabilities that arise from short-term leases (a lease whose term is 12 months or less and does not include a purchase option that we are reasonably certain to exercise). Certain vehicle lease contracts include guaranteed residual value that is considered in the determination of lease classification. The probability of having to satisfy a residual value guarantee is not considered for the purpose of lease classification, but is considered when measuring a lease liability. |
ADOPTION OF RECENT ACCOUNTING PRONOUNCEMENTS | ADOPTION OF RECENT ACCOUNTING PRONOUNCEMENTS 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 February 2016, the FASB issued a new standard related to leases to increase transparency and comparability among organizations. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases, as our accounting for finance leases remained substantially unchanged. Under the new standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. We adopted the standard on January 1, 2019 using a modified retrospective transition, with the effective date method. Under this method, financial results reported in periods prior to 2019 are not recast. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows companies to carry forward their historical lease classification. We also implemented internal controls and key system functionality to enable the preparation of financial information on adoption. The impact of adoption of the standard to previously reported results is shown below. Balance at December 31, Adjustments Balance at January 1, Consolidated Balance Sheets Operating lease right-of-use assets $ — $ 83,222 $ 83,222 Prepaid and other 118,245 (1,383) 116,862 Property, plant and equipment 991,613 5,876 997,489 Current maturities of long-term obligations, net of unamortized debt issuance costs 62,678 2,631 65,309 Accounts payable, accrued and other liabilities 525,199 20,508 545,707 Operating lease liabilities — 61,331 61,331 Long-term obligations, net of unamortized debt issuance costs 1,125,993 3,245 1,129,238 In May 2014, the FASB issued ASU 2014-9, which amended the guidance for recognition of revenue from customer contracts. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in the amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. On January 1, 2018, we adopted this standard and all the related amendments (the “new revenue standard”) for all contracts. This adoption was accounted for using the modified retrospective method. We recognized the cumulative effect of initially applying the new revenue standard as a $2.9 million adjustment to the January 1, 2018 opening balance of retained earnings. A majority of our sales revenue continues to be recognized when products are shipped from our manufacturing facilities. For certain custom product and tooling sales where revenue was previously recognized when the products were shipped, we now recognize revenue over the time required to manufacture the product or build the tool in accordance with the new revenue standard. We also have certain extended warranty contracts, which under the new standard are considered a separate performance obligation and are required to be deferred and recognized into revenue over the life of the agreement. In January 2016, the FASB issued ASU 2016-1, which provides guidance on the classification and measurement of financial assets and liabilities (equity securities and financial liabilities) under the fair value option and the presentation and disclosure requirements for financial instruments. In February 2018, ASU 2018-3 was issued to clarify certain aspects of the guidance issued in January 2016. The guidance modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any related changes in fair value in net income unless the investments qualify for the new practicality exception. A measurement alternative exists for those equity investments that do not have a readily determinable fair value. These investments may be measured at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The standard also includes a new impairment model for equity investments without readily determinable fair values. The new model is a single-step model under which we are required to perform a qualitative assessment each reporting period to identify impairment. When a qualitative assessment indicates that an impairment exists, we will estimate the fair value of the investment and recognize in current earnings an impairment loss equal to the difference between the fair value and the carrying amount of the equity investment. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017. We adopted the requirements of this standard during the first quarter of 2018. In November 2016, the FASB issued ASU 2016-18, which provides guidance to address the diversity in the classification and presentation of changes in restricted cash on the statement of cash flows. The amendments in this standard require that a statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017. We adopted the requirements of this standard during the first quarter of 2018 and appropriate disclosures are included on the statement of cash flows to the extent applicable. In January 2017, the FASB issued ASU 2017-4, which provides guidance to simplify how an entity is required to test goodwill for impairm ent by eliminating Step 2 from the goodwill impairment test. As a result, impairment charges are required for the amount by which a reporting unit’s carrying amount exceeds its fair value up to the amount of its allocated goodwill. We adopted the standard on January 1, 2020 and did not record any impairment charges. In February 2018, the FASB issued ASU 2018-2, which provides guidance on the reclassification of certain tax effects from accumulated other comprehensive income. This guidance allows for the reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act ("TCJA"). The new standard is effective for fiscal years and interim periods beginning after December 15, 2018. We elected to early adopt this standard in the fourth quarter of 2018. As part of this adoption, we elected to reclassify $6.7 million of stranded income tax effects of the TCJA from accumulated other comprehensive income to retained earnings at the beginning of the fourth quarter of 2018. In August 2018, the FASB issued ASU 2018-15 to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, the amendments require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The amendments also require the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement, which includes reasonably certain renewals. We adopted the standard on January 1, 2020 and no material impacts were noted. In August 2018, the FASB issued ASU 2018-13, which amends disclosure requirements for fair value measurements. The new standard modifies disclosure requirements including removing requirements to disclose the valuation process for Level 3 measurements and adding requirements to disclose the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements and the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. We adopted the standard on January 1, 2020 and no material impacts were noted. In August 2018, the FASB issued ASU 2018-14, which amends disclosure requirements for defined benefit pension and other postretirement plans. The amendments in this update remove disclosures that are no longer considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. We adopted the standard during the fourth quarter of 2020 and appropriate disclosures are included in the notes to the financials statement to the extent applicable. The provisions of the new standard do not have any effect on the Company's financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as well as the clarifying amendments subsequently issued. We applied the guidance using a modified retrospective approach and accordingly recognized an amount of $1.4 million as the cumulative adjustment to opening retained earnings in the first quarter of 2020. This is based on management's best estimates of specific losses on individual exposures particularly on current trade receivables, as well as the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. On an ongoing basis, we will contemplate forward-looking economic conditions in recording lifetime expected credit losses for our financial assets measured at cost, such as our trade receivables and certain other assets. Other accounting standards that have been issued by the FASB or other standards-setting bodies did not have a material impact on our consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Standards Update 2016-02 | Restatement of beginning balances | |
Summary of impacts of adoption of recent accounting pronouncements | The impact of adoption of the standard to previously reported results is shown below. Balance at December 31, Adjustments Balance at January 1, Consolidated Balance Sheets Operating lease right-of-use assets $ — $ 83,222 $ 83,222 Prepaid and other 118,245 (1,383) 116,862 Property, plant and equipment 991,613 5,876 997,489 Current maturities of long-term obligations, net of unamortized debt issuance costs 62,678 2,631 65,309 Accounts payable, accrued and other liabilities 525,199 20,508 545,707 Operating lease liabilities — 61,331 61,331 Long-term obligations, net of unamortized debt issuance costs 1,125,993 3,245 1,129,238 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue by segment by geographic area | Revenue by segment and geography based on shipped from locations for the years ended December 31, 2020, 2019, and 2018 is as follows: For the Year Ended December 31, 2020 Segment Europe Domestic Latin Asia Total Pharma $ 808,834 $ 350,265 $ 23,157 $ 43,523 $ 1,225,779 Beauty + Home 681,936 384,004 141,846 90,365 1,298,151 Food + Beverage 113,286 231,717 29,040 31,367 405,410 Total $ 1,604,056 $ 965,986 $ 194,043 $ 165,255 $ 2,929,340 For the Year Ended December 31, 2019 Segment Europe Domestic Latin Asia Total Pharma $ 729,882 $ 297,871 $ 26,344 $ 36,954 $ 1,091,051 Beauty + Home 792,255 310,411 160,048 90,000 1,352,714 Food + Beverage 116,332 228,486 33,996 37,153 415,967 Total $ 1,638,469 $ 836,768 $ 220,388 $ 164,107 $ 2,859,732 For the Year Ended December 31, 2018 Segment Europe Domestic Latin Asia Total Pharma $ 696,079 $ 196,928 $ 25,485 $ 36,160 $ 954,652 Beauty + Home 816,359 334,881 178,392 96,750 1,426,382 Food + Beverage 115,040 194,527 31,742 42,418 383,727 Total $ 1,627,478 $ 726,336 $ 235,619 $ 175,328 $ 2,764,761 |
Schedule of opening and closing balances of contract assets and contract liabilities | The opening and closing balances of our contract asset and contract liabilities are as follows: Balance as of December 31, 2019 Balance as of December 31, 2020 Increase/ (opening) (closing) Contract asset (current) $ 16,245 $ 16,109 $ (136) Contract asset (long-term) $ — $ — $ — Contract liability (current) $ 79,305 $ 87,188 $ 7,883 Contract liability (long-term) $ 9,779 $ 21,584 $ 11,805 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories, by component | Inventories, by component net of reserves, consisted of: 2020 2019 Raw materials $ 116,029 $ 111,653 Work in process 115,870 123,750 Finished goods 147,480 140,392 Total $ 379,379 $ 375,795 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the year ended December 31, 2020 are as follows by reporting segment: Pharma Beauty + Food + Corporate Total Goodwill $ 359,883 $ 223,933 $ 128,279 $ 1,615 $ 713,710 Accumulated impairment losses — — — (1,615) (1,615) Balance as of December 31, 2018 $ 359,883 $ 223,933 $ 128,279 $ — $ 712,095 Acquisition 57,934 — — — 57,934 Foreign currency exchange effects (4,167) (2,275) (126) — (6,568) Goodwill $ 413,650 $ 221,658 $ 128,153 $ 1,615 $ 765,076 Accumulated impairment losses — — — (1,615) (1,615) Balance as of December 31, 2019 $ 413,650 $ 221,658 $ 128,153 $ — $ 763,461 Acquisition 463 103,130 — — 103,593 Foreign currency exchange effects 22,618 8,323 526 — 31,467 Goodwill $ 436,731 $ 333,111 $ 128,679 $ 1,615 $ 900,136 Accumulated impairment losses — — — (1,615) (1,615) Balance as of December 31, 2020 $ 436,731 $ 333,111 $ 128,679 $ — $ 898,521 |
Summary of amortized intangible assets | The table below shows a summary of intangible assets for the years ended December 31, 2020 and 2019. 2020 2019 Weighted Average Gross Accumulated Net Gross Accumulated Net Amortized intangible assets: Patents 7.2 $ 2,861 $ (1,477) $ 1,384 $ 2,804 $ (1,318) $ 1,486 Acquired technology 12.6 111,854 (36,943) 74,911 100,511 (25,430) 75,081 Customer relationships 13.3 286,644 (56,714) 229,930 217,934 (33,924) 184,010 Trademarks and trade names 6.3 46,174 (17,437) 28,737 35,015 (11,003) 24,012 License agreements and other 19.3 19,208 (9,861) 9,347 16,153 (9,658) 6,495 Total intangible assets 12.6 $ 466,741 $ (122,432) $ 344,309 $ 372,417 $ (81,333) $ 291,084 |
Schedule of future estimated amortization expense | Future estimated amortization expense for the years ending December 31 is as follows: 2021 $ 40,195 2022 39,615 2023 38,728 2024 34,954 2025 and thereafter 190,817 |
ACCOUNTS PAYABLE, ACCRUED AND_2
ACCOUNTS PAYABLE, ACCRUED AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Components of accounts payable and accrued liabilities | At December 31, 2020 and 2019, accounts payable, accrued and other liabilities consisted of the following: 2020 2019 Accounts payable, principally trade $ 243,742 $ 192,739 Accrued employee compensation costs 177,144 163,839 Customer deposits and other unearned income 87,052 86,820 Other accrued liabilities 154,525 129,630 Total $ 662,463 $ 573,028 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income taxes | Income before income taxes consists of: Years Ended December 31, 2020 2019 2018 United States $ 91,555 $ 94,612 $ 34,404 International 209,600 247,457 231,616 Total $ 301,155 $ 342,069 $ 266,020 |
Components of provision (benefit) for income taxes | The provision (benefit) for income taxes is composed of: Years Ended December 31, 2020 2019 2018 Current: U.S. Federal $ 9,934 $ 2,129 $ 10,273 State/Local 3,094 883 877 International 82,235 88,084 83,456 $ 95,263 $ 91,096 $ 94,606 Deferred: U.S. Federal/State $ (2,270) $ 4,670 $ (17,019) International (5,928) 4,076 (6,333) $ (8,198) $ 8,746 $ (23,352) Total $ 87,065 $ 99,842 $ 71,254 |
Schedule of reconciliation of actual income tax provision and the tax provision computed by applying statutory federal income tax rate | A reconciliation of the provision for income taxes with the amount computed by applying the statutory federal income tax rate of 21% to income before provision for income taxes is as follows: Years Ended December 31, 2020 2019 2018 Income tax at statutory rate $ 63,243 $ 71,835 $ 55,864 State income taxes (benefits), net of federal tax effect 2,396 2,622 (1,516) Investment incentives (483) (2,530) (1,900) Tax resolutions 820 (1,915) (3,400) Excess tax benefits from share-based compensation (11,625) (15,370) (13,400) Deferred tax charges (benefits), incl. tax rate changes 4,110 — (2,800) U.S. Global Intangible Low-Taxed Income ("GILTI") and Base Erosion Anti-Abuse Tax ("BEAT") (3,909) (1,485) 5,625 U.S. tax reform - transition tax — — (2,570) Valuation allowance 1,332 10,623 3,170 Rate differential on earnings of foreign operations 24,901 32,657 29,024 Other items, net 6,280 3,405 3,157 Actual income tax provision $ 87,065 $ 99,842 $ 71,254 Effective income tax rate 28.9 % 29.2 % 26.8 % |
Components of significant deferred tax assets and liabilities | Significant deferred tax assets and liabilities as of December 31, 2020 and 2019 are composed of the following temporary differences: 2020 2019 Deferred Tax Assets: Net operating loss carryforwards $ 19,353 $ 24,941 Operating and finance leases 24,529 25,440 Pension liabilities 36,085 24,925 Share-based compensation 5,946 6,082 U.S. federal tax credits 8,826 8,575 U.S. state tax credits 7,011 7,881 Vacation and bonus 12,307 7,645 Research and development 8,992 7,539 Inventory 4,854 5,993 Workers compensation 3,353 3,835 Other 16,643 16,496 Total gross deferred tax assets $ 147,899 $ 139,352 Less valuation allowance (23,105) (23,320) Net deferred tax assets $ 124,794 $ 116,032 Deferred Tax Liabilities: Acquisition related intangibles $ 57,295 $ 62,851 Depreciation and amortization 27,737 28,284 Operating and finance leases 26,549 27,555 Other 8,044 6,215 Total gross deferred tax liabilities $ 119,625 $ 124,905 Net deferred tax assets (liabilities) $ 5,169 $ (8,873) |
Schedule of reconciliation of the beginning and ending amount of income tax uncertainties | A reconciliation of the beginning and ending amount of income tax uncertainties is as follows: 2020 2019 2018 Balance at January 1 $ 3,647 $ 3,559 $ 3,080 Increases based on tax positions for the current year 212 412 360 Increases based on tax positions of prior years 790 663 610 Settlements — (558) (491) Lapse of statute of limitations (145) (429) — Balance at December 31 $ 4,504 $ 3,647 $ 3,559 |
Summary of major tax jurisdictions the Company files in, with the years still subject to income tax examinations | The major tax jurisdictions we file in, with the years still subject to income tax examinations, are listed below: Major Tax Tax Years United States — Federal 2017-2020 United States — State 2011-2020 France 2017-2020 Germany 2016-2020 Italy 2015-2020 China 2011-2020 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of current debt | At December 31, 2020 and 2019, our notes payable, revolving credit facility and overdrafts, consisted of the following: 2020 2019 Notes payable 0.0% $ 200 $ 1,436 Revolving credit facility 1.45% 52,000 25,000 Overdrafts 5.68% - 7.82% — 17,823 $ 52,200 $ 44,259 |
Schedule of long-term obligations | At December 31, 2020 and 2019, our long-term obligations consisted of the following: December 31, 2020 December 31, 2019 Notes payable 0.00% – 10.90%, due in monthly and annual installments through 2028 $ 14,002 $ 19,220 Senior unsecured notes 3.2%, due in 2022 75,000 75,000 Senior unsecured debts 1.7% USD floating swapped to 1.36% EUR fixed, equal annual installments through 2022 112,000 168,000 Senior unsecured notes 3.5%, due in 2023 125,000 125,000 Senior unsecured notes 1.0%, due in 2023 122,100 112,170 Senior unsecured notes 3.4%, due in 2024 50,000 50,000 Senior unsecured notes 3.5%, due in 2024 100,000 100,000 Senior unsecured notes 1.2%, due in 2024 244,200 224,340 Senior unsecured notes 3.6%, due in 2025 125,000 125,000 Senior unsecured notes 3.6%, due in 2026 125,000 125,000 Finance Lease Liabilities 30,025 29,952 Unamortized debt issuance costs (1,663) (2,241) $ 1,120,664 $ 1,151,441 Current maturities of long-term obligations (65,666) (65,988) Total long-term obligations $ 1,054,998 $ 1,085,453 |
Schedule of maturities of long-term debt | The aggregate long-term maturities, excluding finance lease liabilities, which are discussed in Note 8, due annually for the next five years and thereafter are: 2021 $ 61,408 2022 135,550 2023 249,788 2024 395,215 2025 125,251 Thereafter 125,090 |
Schedule of covenants on revolving credit facility and corporate long-term obligations | Our revolving credit facility and corporate long-term obligations require us to satisfy certain financial and other covenants including: Requirement Level at December 31, 2020 Consolidated Leverage Ratio (1) Maximum of 3.50 to 1.00 1.63 to 1.00 Consolidated Interest Coverage Ratio (1) Minimum of 3.00 to 1.00 16.86 to 1.00 (1) Definitions of ratios are included as part of the revolving credit facility agreement and the private placement agreements. |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of components of lease expense | The components of lease expense for the years ended December 31, 2020 and 2019 were as follows: Year Ended December 31, 2020 2019 Operating lease cost $ 23,968 $ 23,410 Finance lease cost: Amortization of right-of-use assets $ 3,982 $ 4,217 Interest on lease liabilities 1,414 1,353 Total finance lease cost $ 5,396 $ 5,570 Short-term lease and variable lease costs $ 9,421 $ 8,629 |
Schedule of supplemental cash flow information related to leases | Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 23,484 $ 21,872 Operating cash flows from finance leases 1,372 1,245 Financing cash flows from finance leases 4,436 4,730 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 24,477 $ 15,226 Finance leases 3,642 15,957 |
Schedule of supplemental balance sheet information related to leases | Supplemental balance sheet information related to leases was as follows: December 31, December 31, Operating Leases Operating lease right-of-use assets $ 69,845 $ 72,377 Accounts payable, accrued and other liabilities $ 18,804 $ 16,578 Operating lease liabilities 52,212 55,276 Total operating lease liabilities $ 71,016 $ 71,854 Finance Leases Property, plant and equipment, gross $ 49,760 $ 47,020 Accumulated depreciation (7,258) (4,271) Property, plant and equipment, net $ 42,502 $ 42,749 Current maturities of long-term obligations, net of unamortized debt issuance cost $ 4,258 $ 4,318 Long-term obligations, net of unamortized debt issuance cost 25,767 25,634 Total finance lease liabilities $ 30,025 $ 29,952 Weighted Average Remaining Lease Term (in years) Operating leases 5.0 6.1 Finance leases 7.2 7.0 Weighted Average Discount Rate Operating leases 4.21 % 5.05 % Finance leases 4.85 % 5.13 % |
Schedule of maturities of lease liabilities | Maturities of lease liabilities as of December 31, 2020, were as follows: Operating Finance Year 1 $ 21,351 $ 5,542 Year 2 18,278 4,378 Year 3 10,999 3,509 Year 4 7,844 2,973 Year 5 6,388 2,918 Thereafter 14,880 18,080 Total lease payments 79,740 37,400 Less imputed interest (8,724) (7,375) Total $ 71,016 $ 30,025 |
RETIREMENT AND DEFERRED COMPE_2
RETIREMENT AND DEFERRED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Change in the projected benefit obligation, plan assets at fair value and funded status | The following table presents the changes in the benefit obligations and plan assets for the most recent two years for our domestic and foreign plans. Domestic Plans Foreign Plans 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 227,275 $ 180,803 $ 120,490 $ 104,911 Service cost 14,278 11,093 7,311 5,921 Interest cost 7,046 7,381 1,410 2,023 Special termination benefit charge — — — 64 Plan Amendment — — — 18 Curtailment/Settlement — — — (271) Transfer — — — 939 Prior service cost — — (2,701) (451) Actuarial loss (gain) 38,175 39,209 1,809 13,575 Benefits paid (14,303) (11,211) (5,145) (4,130) Foreign currency translation adjustment — — 11,252 (2,109) Benefit obligation at end of year $ 272,471 $ 227,275 $ 134,426 $ 120,490 Domestic Plans Foreign Plans 2020 2019 2020 2019 Change in plan assets: Fair value of plan assets at beginning of year $ 188,801 $ 169,958 $ 74,189 $ 68,992 Actual return on plan assets 17,088 29,618 2,008 3,851 Employer contribution 448 436 7,527 6,542 Benefits paid (14,303) (11,211) (5,145) (4,130) Transfer — — — 359 Foreign currency translation adjustment — — 6,508 (1,425) Fair value of plan assets at end of year $ 192,034 $ 188,801 $ 85,087 $ 74,189 Funded status at end of year $ (80,437) $ (38,474) $ (49,339) $ (46,301) |
Schedule of funded status amounts recognized in the Consolidated Balance Sheet | The following table presents the funded status amounts recognized in our Consolidated Balance Sheets as of December 31, 2020 and 2019. Domestic Plans Foreign Plans 2020 2019 2020 2019 Non-current assets $ — $ — $ 81 $ 938 Current liabilities (461) (449) (37) (44) Non-current liabilities (79,976) (38,025) (49,383) (47,195) $ (80,437) $ (38,474) $ (49,339) $ (46,301) |
Schedule of amounts not recognized as components of periodic benefit cost that are recognized in accumulated other comprehensive loss | The following table presents the amounts not recognized as components of periodic benefit cost that are recognized in accumulated other comprehensive loss as of December 31, 2020 and 2019. Domestic Plans Foreign Plans 2020 2019 2020 2019 Net actuarial loss $ 96,440 $ 68,789 $ 40,851 $ 40,442 Net prior service cost — — 675 3,774 Tax effects (22,181) (15,821) (13,466) (14,040) $ 74,259 $ 52,968 $ 28,060 $ 30,176 |
Schedule of changes in benefit obligations and plan assets recognized in other comprehensive income | Changes in benefit obligations and plan assets recognized in other comprehensive income in 2020, 2019 and 2018 are as follows: Domestic Plans 2020 2019 2018 Current year actuarial (loss) gain $ (33,335) $ (21,970) $ 4,611 Amortization of net loss 5,684 1,957 4,873 $ (27,651) $ (20,013) $ 9,484 Foreign Plans 2020 2019 2018 Current year actuarial (loss) gain $ (2,530) $ (11,999) $ 534 Current year prior service cost 2,701 451 (35) Transfer Prior service Cost — (18) — Transfer Actuarial (loss) gain — (126) — Recognition due to curtailment — — 1,692 Amortization of net loss 2,121 1,444 1,716 Amortization of prior service cost 398 449 720 $ 2,690 $ (9,799) $ 4,627 |
Components of net periodic benefit cost | Components of net periodic benefit cost: Domestic Plans 2020 2019 2018 Service cost $ 14,278 $ 11,093 $ 11,396 Interest cost 7,046 7,381 6,878 Expected return on plan assets (12,248) (12,379) (11,257) Amortization of net loss 5,684 1,957 4,873 Net periodic benefit cost $ 14,760 $ 8,052 $ 11,890 Foreign Plans 2020 2019 2018 Service cost $ 7,311 $ 5,921 $ 5,954 Interest cost 1,410 2,023 1,828 Expected return on plan assets (2,620) (2,366) (2,610) Amortization of net loss 2,121 1,444 1,716 Amortization of prior service cost 398 449 720 Net periodic benefit cost $ 8,620 $ 7,471 $ 7,608 Curtailment (8) (246) (59) Special termination benefit charge — 65 62 Total Net periodic benefit cost $ 8,612 $ 7,290 $ 7,611 |
Schedule of projected benefit obligation ("PBO"), ABO, and fair value of plan assets for all pension plans with an ABO in excess of plan assets | The following table provides the projected benefit obligation (“PBO”), ABO, and fair value of plan assets for all pension plans with an ABO in excess of plan assets as of December 31, 2020 and 2019. Domestic Plans Foreign Plans 2020 2019 2020 2019 Projected benefit obligation $ 272,471 $ 227,275 $ 120,795 $ 92,561 Accumulated benefit obligation 249,831 205,326 89,702 65,062 Fair value of plan assets 192,034 188,801 71,457 46,371 |
Schedule of PBO, ABO, and fair value of plan assets for all pension plans with a PBO in excess of plan assets | The following table provides the PBO, ABO and fair value of plan assets for all pension plans with a PBO in excess of plan assets as of December 31, 2020 and 2019. Domestic Plans Foreign Plans 2020 2019 2020 2019 Projected benefit obligation $ 272,471 $ 227,275 $ 130,616 $ 102,310 Accumulated benefit obligation 249,831 205,326 98,360 73,943 Fair value of plan assets 192,034 188,801 79,764 55,260 |
Schedule of weighted-average assumptions used to determine benefit obligations and net periodic benefit cost | Assumptions: Domestic Plans Foreign Plans 2020 2019 2018 2020 2019 2018 Weighted-average assumptions used to determine benefit obligations at December 31: Discount rate 2.40 % 3.20 % 4.20 % 0.54 % 1.04 % 1.82 % Rate of compensation increase 3.19 % 4.00 % 4.00 % 3.05 % 3.05 % 3.01 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 3.20 % 4.20 % 3.55 % 1.12 % 1.84 % 1.62 % Expected long-term return on plan assets 7.00 % 7.00 % 7.00 % 3.41 % 3.69 % 3.66 % Rate of compensation increase 4.00 % 4.00 % 4.00 % 3.05 % 3.05 % 3.02 % |
Schedule of domestic and foreign pension plan weighted-average asset allocations by asset category | Plan Assets: Domestic Plans Assets at December 31, Foreign Plans Assets at December 31, 2020 2019 2020 2019 Equity securities 48 % 49 % 5 % 4 % Fixed income securities 28 % 29 % 1 % 1 % Corporate debt securities — — 2 % 3 % Infrastructure 7 % 6 % — — Hedge funds 10 % 10 % — — Money market 2 % 1 % — % 3 % Investment Funds — — 92 % 89 % Real estate 5 % 5 % — — Total 100 % 100 % 100 % 100 % |
Summary of fair value of pension plan assets | Domestic Fair Value Measurement at December 31, 2020 Foreign Fair Value Measurement at December 31, 2020 (In Thousands $) Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Cash and Short-term Securities (a) $ 3,207 $ 3,207 $ — $ — $ 415 $ 415 $ — $ — USD — 3,207 — — — — — — EUR — — — — — 404 — — Others — — — — — 11 — — Equity Securities (a) $ 83,041 $ 83,041 $ — $ — $ 4,107 $ 4,107 $ — $ — U.S. Large Cap Equities — 48,138 — — — — — — U.S. Small Cap Equities — 10,299 — — — — — — International Equities — 24,604 — — — 4,107 — — Fixed Income (a&b) $ 35,691 $ 35,691 $ — $ — $ 834 $ 834 $ — $ — Corporate debts securities $ — $ — $ — $ — $ 1,555 $ 1,555 $ — $ — Euro Corporate Bonds (a) — — — — — 1,555 — — Investment Funds $ — $ — $ — $ — $ 78,176 $ 27,500 $ 50,676 $ — Mutual Funds in Equities (a) — — — — — 4,022 — — Mutual Funds in Bonds (a) — — — — — 22,475 — — Mutual Funds Diversified (a&b) — — — — — 1,003 50,676 — Total Investments in Fair Value Hierarchy $ 121,939 $ 121,939 $ — $ — $ 85,087 $ 34,411 $ 50,676 $ — Investments at Net Asset Value per Share 70,095 — — — — — — — Total Investments $ 192,034 $ 121,939 $ — $ — $ 85,087 $ 34,411 $ 50,676 $ — Domestic Fair Value Measurement at December 31, 2019 Foreign Fair Value Measurement at December 31, 2019 (In Thousands $) Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Cash and Short-term Securities (a) $ 1,988 $ 1,988 $ — $ — $ 2,030 $ 2,030 $ — $ — USD — 1,988 — — — — — — EUR — — — — — 2,012 — — Others — — — — — 18 — — Equity Securities (a) $ 81,997 $ 81,997 $ — $ — $ 2,995 $ 2,995 $ — $ — U.S. Large Cap Equities — 48,580 — — — — — — U.S. Small Cap Equities — 9,921 — — — — — — International Equities — 23,496 — — — 2,995 — — Fixed Income (a&b) $ 35,898 $ 35,898 $ — $ — $ 820 $ 820 $ — $ — Corporate debts securities $ — $ — $ — $ — $ 2,115 $ 2,115 $ — $ — Euro Corporate Bonds (a) — — — — — 2,115 — — Investment Funds $ — $ — $ — $ — $ 66,229 $ 23,797 $ 42,432 $ — Mutual Funds in Equities (a) — — — — — 4,025 — — Mutual Funds in Bonds (a) — — — — — 18,881 — — Mutual Funds Diversified (a&b) — — — — — 891 42,432 — Total Investments in Fair Value Hierarchy $ 119,883 $ 119,883 $ — $ — $ 74,189 $ 31,757 $ 42,432 $ — Investments at Net Asset Value per Share 68,918 — — — — — — — Total Investments $ 188,801 $ 119,883 $ — $ — $ 74,189 $ 31,757 $ 42,432 $ — (a) Based on third party quotation from financial institution. (b) Based on observable market transactions. |
Schedule of estimated benefit payments relating to defined benefit plans over the next ten years | As of December 31, 2020, we expect the plans to make the following estimated benefit payments relating to our defined benefit plans over the next ten years: Domestic Plans Foreign Plans 2021 $ 12,464 $ 5,514 2022 12,533 2,505 2023 13,297 3,154 2024 14,413 4,591 2025 14,461 7,772 2026 - 2030 78,437 37,211 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Changes in Accumulated Other Comprehensive Income/(Loss) by Component | Changes in Accumulated Other Comprehensive Income/(Loss) by Component: Foreign Defined Benefit Derivatives Total Balance - December 31, 2017 $ (185,503) $ (64,595) $ (3,204) $ (253,302) Other comprehensive (loss) income before reclassifications (62,898) 5,266 16,624 (41,008) Amounts reclassified from accumulated other comprehensive income (loss) — 5,524 (15,060) (9,536) Net current-period other comprehensive (loss) income (62,898) 10,790 1,564 (50,544) Reclassification of stranded tax effects — (6,658) — (6,658) Balance - December 31, 2018 $ (248,401) $ (60,463) $ (1,640) $ (310,504) Other comprehensive (loss) income before reclassifications (8,723) (25,557) 8,026 (26,254) Amounts reclassified from accumulated other comprehensive income (loss) — 2,873 (8,063) (5,190) Net current-period other comprehensive (loss) (8,723) (22,684) (37) (31,444) Balance - December 31, 2019 $ (257,124) $ (83,147) $ (1,677) $ (341,948) Other comprehensive income (loss) before reclassifications 79,099 (25,389) (9,172) 44,538 Amounts reclassified from accumulated other comprehensive income — 6,214 9,487 15,701 Net current-period other comprehensive income (loss) 79,099 (19,175) 315 60,239 Balance - December 31, 2020 $ (178,025) $ (102,322) $ (1,362) $ (281,709) |
Reclassifications Out of Accumulated Other Comprehensive Income/(Loss) | Reclassifications Out of Accumulated Other Comprehensive Income/(Loss): Details about Accumulated Other Amount Reclassified from Affected Line in the Statement Year Ended December 31, 2020 2019 2018 Defined Benefit Pension Plans Amortization of net loss $ 7,805 $ 3,401 $ 6,589 (1) Amortization of prior service cost 398 449 720 (1) 8,203 3,850 7,309 Total before tax (1,989) (977) (1,785) Tax benefit $ 6,214 $ 2,873 $ 5,524 Net of tax Derivatives Changes in treasury locks $ — $ — $ 26 Interest Expense Changes in cross currency swap: interest component (1,474) (4,805) (5,150) Interest Expense Changes in cross currency swap: foreign exchange component 10,961 (3,258) (13,025) Miscellaneous, net 9,487 (8,063) (18,149) Total before tax — — 3,089 Tax benefit $ 9,487 $ (8,063) $ (15,060) Net of tax Total reclassifications for the period $ 15,701 $ (5,190) $ (9,536) (1) These accumulated other comprehensive income components are included in the computation of total net periodic benefit costs, net of tax (see Note 9 - Retirement and Deferred Compensation Plans for additional details). |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments in the Consolidated Balance Sheets | Fair Value of Derivative Instruments in the Consolidated Balance Sheets as of December 31, 2020 and December 31, 2019 December 31, 2020 December 31, 2019 Balance Sheet Derivatives Derivatives Derivatives Derivatives Derivative Assets Foreign Exchange Contracts Prepaid and other $ — $ 322 $ — $ 206 Cross Currency Swap Contract (1) Prepaid and other — — 2,552 — $ — $ 322 $ 2,552 $ 206 Derivative Liabilities Foreign Exchange Contracts Accounts payable, accrued and other liabilities $ — $ 146 $ — $ 401 Cross Currency Swap Contract (1) Accounts payable, accrued and other liabilities 8,309 — — — $ 8,309 $ 146 $ — $ 401 (1) This cross currency swap contract is composed of both an interest component and a foreign exchange component. |
Schedule of Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) | The Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) for the Fiscal Years Ended December 31, 2020 and December 31, 2019 Derivatives in Cash Amount of Gain (Loss) Location of (Loss) Amount of Gain (Loss) Total Amount 2020 2019 2020 2019 Cross currency swap contract: Interest component $ 1,789 $ 5,103 Interest expense $ 1,474 $ 4,805 $ (33,244) Foreign exchange component (10,961) 3,258 Miscellaneous, net (10,961) 3,258 (4,614) $ (9,172) $ 8,361 $ (9,487) $ 8,063 |
Schedule of Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statements of Income | The Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statements of Income for the Fiscal Years Ended December 31, 2020 and December 31, 2019 Derivatives Not Designated Location of (Loss) Gain Recognized Amount of (Loss) Gain 2020 2019 Foreign Exchange Contracts Other (Expense) Income: $ 337 $ (141) $ 337 $ (141) |
Schedule of Offsetting Derivative Assets and Liabilities | Gross Amounts Net Amounts Gross Amounts not Offset Gross Financial Cash Collateral Net Description December 31, 2020 Derivative Assets $ 322 $ — $ 322 $ — $ — $ 322 Total Assets $ 322 $ — $ 322 $ — $ — $ 322 Derivative Liabilities $ 8,455 $ — $ 8,455 $ — $ — $ 8,455 Total Liabilities $ 8,455 $ — $ 8,455 $ — $ — $ 8,455 December 31, 2019 Derivative Assets $ 2,758 $ — $ 2,758 $ — $ — $ 2,758 Total Assets $ 2,758 $ — $ 2,758 $ — $ — $ 2,758 Derivative Liabilities $ 401 $ — $ 401 $ — $ — $ 401 Total Liabilities $ 401 $ — $ 401 $ — $ — $ 401 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Values of Financial Assets and Liabilities | As of December 31, 2020, the fair values of our financial assets and liabilities were categorized as follows: Total Level 1 Level 2 Level 3 Assets Foreign exchange contracts (1) $ 322 $ — $ 322 $ — Cross currency swap contract (1) — — — — Total assets at fair value $ 322 $ — $ 322 $ — Liabilities Foreign exchange contracts (1) $ 146 $ — $ 146 $ — Cross currency swap contract (1) 8,309 — 8,309 — Contingent consideration obligation 31,140 — — 31,140 Total liabilities at fair value $ 39,595 $ — $ 8,455 $ 31,140 As of December 31, 2019, the fair values of our financial assets and liabilities were categorized as follows: Total Level 1 Level 2 Level 3 Assets Foreign exchange contracts (1) $ 206 $ — $ 206 $ — Cross currency swap contract (1) 2,552 — 2,552 — Total assets at fair value $ 2,758 $ — $ 2,758 $ — Liabilities Foreign exchange contracts (1) $ 401 $ — $ 401 $ — Contingent consideration obligation 5,930 — — 5,930 Total liabilities at fair value $ 6,331 $ — $ 401 $ 5,930 (1) Market approach valuation technique based on observable market transactions of spot and forward rates. |
Schedule of Contingent Consideration Arrangements, Fair Value | We consider these obligations a Level 3 liability and have estimated the aggregate fair value for these contingent consideration arrangements as follows: December 31, 2020 December 31, 2019 Fusion Acquisition $ 26,910 $ — Noble Acquisition 4,230 2,930 Gateway Acquisition — 3,000 $ 31,140 $ 5,930 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a summary of changes in our Level 3 fair value measurements: Balance, December 31, 2018 $ — Acquisition 5,930 Increase (decrease) in fair value recorded in earnings — Payments — Balance, December 31, 2019 $ 5,930 Acquisition 22,745 Increase (decrease) in fair value recorded in earnings 5,230 Payments (2,765) Balance, December 31, 2020 $ 31,140 |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
CAPITAL STOCK | |
Schedule of number of shares of common stock and treasury stock and the share activity | The number of shares of common stock and treasury stock and the share activity were as follows: Common Shares Treasury Shares 2020 2019 2018 2020 2019 2018 Balance at the beginning of the year 68,608,508 67,341,316 66,742,490 4,836,027 4,424,884 4,881,889 Employee option exercises 802,046 1,079,841 1,182,547 (307,976) (367,705) (502,005) Director option exercises 26,551 146,083 — — — — Restricted stock vestings 79,700 41,268 39,691 — — — Common stock repurchases — — — — 778,848 45,000 Common stock repurchased and retired — — (623,412) — — — Balance at the end of the year 69,516,805 68,608,508 67,341,316 4,528,051 4,836,027 4,424,884 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Inputs and assumptions used to calculate fair value | 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. Year Ended December 31, 2020 2019 2018 Fair value per stock award $ 94.98 $ 134.97 $ 128.70 Grant date stock price $ 83.93 $ 104.51 $ 89.42 Assumptions: Aptar's stock price expected volatility 23.80 % 16.50 % 12.30 % Expected average volatility of peer companies 48.50 % 31.90 % 27.50 % Correlation assumption 63.50 % 37.40 % 20.20 % Risk-free interest rate 0.31 % 2.19 % 2.42 % Dividend yield assumption 1.72 % 1.30 % 1.43 % |
Summary of RSU activity | A summary of RSU activity as of December 31, 2020, and changes during the period then ended is presented below: Time-Based RSUs Performance-Based RSUs Units Weighted Average Units Weighted Average Nonvested at January 1, 2020 480,729 $ 95.45 181,680 $ 117.26 Granted 241,812 87.13 417,313 93.08 Vested (138,606) 86.84 — — Forfeited (7,737) 97.80 (8,929) 111.60 Nonvested at December 31, 2020 576,198 $ 92.47 590,064 $ 100.27 |
Schedule of compensation expense, fair value, and intrinsic value related to RSU's | Year Ended December 31, 2020 2019 2018 Compensation expense $ 32,085 $ 18,197 $ 8,703 Fair value of units vested 12,038 4,566 2,980 Intrinsic value of units vested 14,446 5,360 3,708 |
Weighted-average assumptions used to estimate fair value of stock options granted | These values were estimated on the respective dates of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: Stock Awards Plans: Year Ended December 31, 2018 Dividend Yield 1.5 % Expected Stock Price Volatility 14.2 % Risk-free Interest Rate 2.8 % Expected Life of Option (years) 6.6 |
Summary of option activity | A summary of option activity under our stock plans as of December 31, 2020, and changes during the period then ended is presented below: Stock Awards Plans Director Stock Option Plans Options Weighted Average Options Weighted Average Outstanding, January 1, 2020 5,044,180 $ 68.32 135,251 $ 58.45 Granted — — — — Exercised (1,035,649) 60.81 (36,051) 52.00 Forfeited or expired (10,484) 80.13 — — Outstanding at December 31, 2020 3,998,047 $ 70.28 99,200 $ 60.80 Exercisable at December 31, 2020 3,845,344 $ 69.45 99,200 $ 60.80 Weighted-Average Remaining Contractual Term (Years): Outstanding at December 31, 2020 4.8 2.6 Exercisable at December 31, 2020 4.6 2.6 Aggregate Intrinsic Value: Outstanding at December 31, 2020 $ 256,760 $ 7,311 Exercisable at December 31, 2020 $ 249,299 $ 7,311 Intrinsic Value of Options Exercised During the Years Ended: December 31, 2020 $ 59,179 $ 2,318 December 31, 2019 $ 87,251 $ 1,172 December 31, 2018 $ 72,951 $ 2,286 |
Schedule of compensation expense, and fair value related to options | Year Ended December 31, 2020 2019 2018 Compensation expense (included in SG&A) $ 1,693 $ 4,768 $ 8,677 Compensation expense (included in Cost of sales) 370 928 2,181 Compensation expense, Total $ 2,063 $ 5,696 $ 10,858 Compensation expense, net of tax 1,573 4,507 8,391 Grant date fair value of options vested 7,601 17,492 16,518 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings Per Share | The reconciliation of basic and diluted earnings per share (“EPS”) for the years ended December 31, 2020, 2019 and 2018 are as follows: Income Shares Per Share For the Year Ended December 31, 2020 Basic EPS Income available to common stockholders $ 214,040 64,418 $ 3.32 Effect of Dilutive Securities Stock options 1,800 Restricted stock 439 Diluted EPS Income available to common stockholders $ 214,040 66,657 $ 3.21 For the Year Ended December 31, 2019 Basic EPS Income available to common stockholders $ 242,202 63,574 $ 3.81 Effect of Dilutive Securities Stock options 2,344 Restricted stock 232 Diluted EPS Income available to common stockholders $ 242,202 66,150 $ 3.66 For the Year Ended December 31, 2018 Basic EPS Income available to common stockholders $ 194,745 62,437 $ 3.12 Effect of Dilutive Securities Stock options 2,440 Restricted stock 81 Diluted EPS Income available to common stockholders $ 194,745 64,958 $ 3.00 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Financial information regarding the company's reportable segments | Financial information regarding our reporting segments is shown below: Year Ended December 31, 2020 2019 2018 Total Sales: Pharma $ 1,234,107 $ 1,100,463 $ 955,069 Beauty + Home 1,320,988 1,376,027 1,446,231 Food + Beverage 407,435 418,017 386,689 Total Sales $ 2,962,530 $ 2,894,507 $ 2,787,989 Less: Intersegment Sales: Pharma $ 8,328 $ 9,412 $ 417 Beauty + Home 22,837 23,313 19,849 Food + Beverage 2,025 2,050 2,962 Total Intersegment Sales $ 33,190 $ 34,775 $ 23,228 Net Sales: Pharma $ 1,225,779 $ 1,091,051 $ 954,652 Beauty + Home 1,298,151 1,352,714 1,426,382 Food + Beverage 405,410 415,967 383,727 Net Sales $ 2,929,340 $ 2,859,732 $ 2,764,761 Adjusted EBITDA (1): Pharma $ 428,469 $ 387,483 $ 343,706 Beauty + Home 129,299 181,150 185,926 Food + Beverage 71,995 68,108 57,589 Corporate & Other, unallocated (43,443) (44,406) (36,285) Acquisition-related costs (2) (6,087) (3,927) (23,770) Restructuring Initiatives (3) (26,492) (20,472) (63,829) Depreciation and amortization (4) (220,300) (194,552) (171,747) Interest Expense (33,244) (35,489) (32,626) Interest Income 958 4,174 7,056 Income before Income Taxes $ 301,155 $ 342,069 $ 266,020 Depreciation and Amortization: Pharma $ 75,874 $ 65,590 $ 51,495 Beauty + Home 95,880 82,778 83,546 Food + Beverage 37,768 35,728 27,467 Corporate & Other 10,778 10,456 9,239 Depreciation and Amortization $ 220,300 $ 194,552 $ 171,747 Capital Expenditures: Pharma $ 117,835 $ 89,702 $ 54,433 Beauty + Home 93,980 96,040 101,371 Food + Beverage 29,956 45,130 41,236 Corporate & Other 15,690 13,933 25,739 Transfer of Corporate Technology Expenditures (5) (11,507) (2,529) (11,527) Capital Expenditures $ 245,954 $ 242,276 $ 211,252 Total Assets: Pharma $ 1,549,781 $ 1,422,815 $ 1,324,696 Beauty + Home 1,610,058 1,378,292 1,373,816 Food + Beverage 549,270 534,527 501,700 Corporate & Other 280,944 226,485 177,523 Total Assets $ 3,990,053 $ 3,562,119 $ 3,377,735 (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, and other special items. (2) Acquisition-related costs include transaction costs and purchase accounting adjustments related to acquisitions and investments (see Note 19 – Acquisitions and Note 20 – Investments in Equity Securities for further details). (3) Restructuring Initiatives includes expense items for the years ended December 31, 2020, 2019, and 2018 as follows (see Note 21 – Restructuring Initiatives for further details): Year Ended December 31, 2020 2019 2018 Restructuring Initiatives by Segment Pharma $ 220 $ 632 $ 3,589 Beauty + Home 24,464 17,682 52,244 Food + Beverage 1,903 391 4,185 Corporate & Other (95) 1,767 3,811 Total Restructuring Initiatives $ 26,492 $ 20,472 $ 63,829 (4) Depreciation and amortization includes amortization related to acquisition purchase accounting adjustments. See the reconciliation of Non-U.S. GAAP measures. (5) The transfer of corporate technology expenditures represents amounts of projects managed by corporate for the benefit of specific entities within each segment. Once the projects are complete, all related costs are allocated from corporate to and paid by the appropriate entity and the associated assets are then depreciated at the entity level. |
Restructuring Initiatives | Year Ended December 31, 2020 2019 2018 Restructuring Initiatives by Segment Pharma $ 220 $ 632 $ 3,589 Beauty + Home 24,464 17,682 52,244 Food + Beverage 1,903 391 4,185 Corporate & Other (95) 1,767 3,811 Total Restructuring Initiatives $ 26,492 $ 20,472 $ 63,829 |
Schedule of net sales and long-lived asset information by geographic area | The following are net sales and long-lived asset information by geographic area and product information for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Net Sales to Unaffiliated Customers (1): United States $ 965,986 $ 836,768 $ 726,336 Europe: France 854,639 895,110 862,364 Germany 448,405 452,409 474,369 Italy 148,636 141,867 144,044 Other Europe 152,376 149,083 146,701 Total Europe 1,604,056 1,638,469 1,627,478 Other Foreign Countries 359,298 384,495 410,947 Total $ 2,929,340 $ 2,859,732 $ 2,764,761 Property, Plant and Equipment, Net United States $ 298,616 $ 300,820 $ 265,004 Europe: France 426,353 338,288 308,250 Germany 194,553 163,782 154,505 Italy 57,333 53,562 54,978 Other Europe 55,933 63,636 59,411 Total Europe 734,172 619,268 577,144 Other Foreign Countries 165,960 167,590 149,465 Total $ 1,198,748 $ 1,087,678 $ 991,613 (1) Sales are attributed to countries based upon where the sales invoice to unaffiliated customers is generated. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of assets acquired and liabilities assumed at estimated fair value | The following table summarizes the assets acquired and liabilities assumed as of the acquisition date at estimated fair value. 2020 2019 Assets Cash and equivalents $ 1,010 $ 3,427 Accounts receivable 4,380 3,504 Inventories 386 — Prepaid and other 1,090 2,478 Property, plant and equipment 2,885 4,267 Goodwill 103,130 59,143 Intangible assets 79,900 52,980 Operating lease right-of-use assets 4,744 — Other miscellaneous assets 65 430 Liabilities Accounts payable, accrued and other liabilities 5,641 5,388 Deferred income taxes — 2,592 Operating lease liabilities 4,207 — Deferred and other non-current liabilities 322 1,598 Net assets acquired $ 187,420 $ 116,651 |
Summary of the fair value estimates of the acquired identifiable intangible assets and weighted-average useful lives as of the acquisition date | The following table is a summary of the fair value estimates of the acquired identifiable intangible assets and weighted-average useful lives as of the acquisition date: 2020 2019 Weighted-Average Estimated Weighted-Average Estimated Acquired technology 4 $ 4,600 8 $ 9,160 Customer relationships 13 62,300 11 39,379 Trademarks and trade names 4 10,300 4 2,457 License agreements and other 0.25 2,700 1 1,984 Total $ 79,900 $ 52,980 |
Schedule of unaudited pro forma financial information | Accordingly, the unaudited pro forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the acquisition been completed on the dates indicated. Years Ended December 31, 2020 2019 Net Sales $ 2,937,303 $ 2,937,218 Net Income Attributable to AptarGroup Inc. 215,619 247,263 Net Income per common share — basic 3.35 3.89 Net Income per common share — diluted 3.23 3.74 |
INVESTMENT IN EQUITY SECURITI_2
INVESTMENT IN EQUITY SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Our investment in equity securities consisted of the following: December 31, 2020 December 31, 2019 Equity Method Investments BTY $ 33,020 $ 119 Sonmol 5,598 — Kali Care 535 3,881 Desotec GmbH 964 858 Other Investments PureCycle 5,397 1,000 Loop 2,894 2,538 Others 1,679 — $ 50,087 $ 8,396 |
RESTRUCTURING INITIATIVES (Tabl
RESTRUCTURING INITIATIVES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | As of December 31, 2020 we have recorded the following activity associated with the transformation plan: Beginning Reserve at 12/31/2019 Net Charges for the Year Ended 12/31/2020 Cash Paid Interest and Ending Reserve at 12/31/2020 Employee severance $ 7,090 $ 16,162 $ (14,731) $ (565) $ 7,956 Professional fees and other costs 3,609 7,854 (9,502) 572 2,533 Totals $ 10,699 $ 24,016 $ (24,233) $ 7 $ 10,489 |
QUARTERLY DATA (UNAUDITED) (Tab
QUARTERLY DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly results of operations and per share information | Quarterly results of operations and per share information for the years ended December 31, 2020 and 2019 are as follows: Quarter Total First Second Third Fourth Year Ended December 31, 2020 Net sales $ 721,553 $ 699,305 $ 759,153 $ 749,329 $ 2,929,340 Gross profit (1) 227,505 213,494 233,988 231,019 906,006 Net Income 55,250 41,860 63,735 53,245 214,090 Net Income Attributable to AptarGroup, Inc. 55,253 41,839 63,716 53,232 214,040 Per Common Share — 2020: Net Income Attributable to AptarGroup, Inc. Basic $ 0.86 $ 0.65 $ 0.99 $ 0.82 $ 3.32 Diluted 0.84 0.63 0.95 0.79 3.21 Average number of shares outstanding: Basic 64,009 64,262 64,562 64,833 64,418 Diluted 66,111 66,384 66,922 67,265 66,657 Year Ended December 31, 2019 Net sales $ 744,460 $ 742,661 $ 701,278 $ 671,333 $ 2,859,732 Gross profit (1) 233,841 231,739 215,222 193,588 874,390 Net Income 62,999 73,921 56,769 48,538 242,227 Net Income Attributable to AptarGroup, Inc. 63,004 73,915 56,750 48,533 242,202 Per Common Share — 2019: Net Income Attributable to AptarGroup, Inc. Basic $ 1.00 $ 1.16 $ 0.89 $ 0.76 $ 3.81 Diluted 0.96 1.12 0.85 0.73 3.66 Average number of shares outstanding: Basic 62,964 63,471 64,010 63,835 63,574 Diluted 65,349 66,232 66,702 66,192 66,150 (1) Gross profit is defined as net sales less cost of sales and depreciation. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basis of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Restructuring initiatives | $ 26,492 | $ 20,472 | $ 63,829 | |
Argentina | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Foreign currency, gain recognized | $ 1,000 | |||
Argentina | Maximum | Consolidated net revenues | Geographic concentration risk | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Concentration risk | 2.00% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ / shares in Units, shares in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Nov. 30, 2020USD ($) | Aug. 31, 2019USD ($)investment | Jan. 31, 2019USD ($) | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | May 31, 2018USD ($) | |
ACCOUNTS RECEIVABLE AND CURRENT EXPECTED CREDIT LOSSES | |||||||||
Accounts receivable | $ 567,000,000 | $ 567,000,000 | |||||||
Accounts and notes receivable, less current expected credit loss (in dollars) | $ 5,918,000 | 5,918,000 | $ 3,626,000 | ||||||
INVESTMENTS IN EQUITY SECURITIES | |||||||||
Increase (decrease) in value of preferred equity stock investment | 64,000 | 0 | $ 6,500,000 | ||||||
Proceeds from sale of investment in equity securities | 0 | 16,487,000 | 0 | ||||||
Investment in unconsolidated affiliate | 39,628,000 | 3,530,000 | 10,000,000 | ||||||
Dividends received from affiliates | $ 0 | $ 0 | 0 | ||||||
RETIREMENT OF COMMON STOCK | |||||||||
Common stock repurchased (retired and held in treasury) (in shares) | shares | 0 | 779 | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
RESEARCH & DEVELOPMENT EXPENSES | |||||||||
Research and development expenses incurred net of customer funded research and development or government research and development credits | $ 92,500,000 | $ 82,800,000 | 75,300,000 | ||||||
TRANSLATION OF FOREIGN CURRENCIES | |||||||||
Foreign Currency Transaction Gain (Loss), before Tax | (5,900,000) | $ (1,700,000) | (1,700,000) | ||||||
PureCycle | |||||||||
INVESTMENTS IN EQUITY SECURITIES | |||||||||
Investment impairment | 0 | ||||||||
Kali Care | |||||||||
INVESTMENTS IN EQUITY SECURITIES | |||||||||
Investment in unconsolidated affiliate | $ 5,000,000 | ||||||||
Investment impairment | $ 3,000,000 | ||||||||
Preferred equity stocks | |||||||||
INVESTMENTS IN EQUITY SECURITIES | |||||||||
Investment in preferred equity stock | $ 10,000,000 | ||||||||
Increase (decrease) in value of preferred equity stock investment | $ 6,500,000 | ||||||||
Proceeds from sale of investment in equity securities | $ 16,500,000 | ||||||||
Preferred equity stocks | Loop and Purecycle | |||||||||
INVESTMENTS IN EQUITY SECURITIES | |||||||||
Increase (decrease) in value of preferred equity stock investment | 1,400,000 | ||||||||
Investment in unconsolidated affiliate | $ 3,500,000 | ||||||||
Number of preferred equity investments | investment | 2 | ||||||||
Preferred equity stocks | PureCycle | |||||||||
INVESTMENTS IN EQUITY SECURITIES | |||||||||
Increase (decrease) in value of preferred equity stock investment | $ 3,100,000 | ||||||||
Equity received in exchange for services | $ 333,000 | ||||||||
Buildings and improvements | Minimum | |||||||||
PROPERTY AND DEPRECIATION | |||||||||
Estimated useful lives (in years) | 10 years | ||||||||
Buildings and improvements | Maximum | |||||||||
PROPERTY AND DEPRECIATION | |||||||||
Estimated useful lives (in years) | 40 years | ||||||||
Machinery and equipment | Minimum | |||||||||
PROPERTY AND DEPRECIATION | |||||||||
Estimated useful lives (in years) | 3 years | ||||||||
Machinery and equipment | Maximum | |||||||||
PROPERTY AND DEPRECIATION | |||||||||
Estimated useful lives (in years) | 15 years | ||||||||
Finite-Lived Intangible Assets | Minimum | |||||||||
FINITE-LIVED INTANGIBLE ASSETS | |||||||||
Finite-Lived Intangible Asset, Useful Life (in years) | 1 year | ||||||||
Finite-Lived Intangible Assets | Maximum | |||||||||
FINITE-LIVED INTANGIBLE ASSETS | |||||||||
Finite-Lived Intangible Asset, Useful Life (in years) | 20 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Adoption of ASU 2016-02 (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use assets | $ 69,845 | $ 72,377 | $ 83,222 | $ 0 |
Prepaid and other | 122,613 | 115,048 | 116,862 | 118,245 |
Property, plant and equipment | 1,198,748 | 1,087,678 | 997,489 | 991,613 |
Current maturities of long-term obligations, net of unamortized debt issuance costs | 65,666 | 65,988 | 65,309 | 62,678 |
Accounts payable, accrued and other liabilities | 662,463 | 573,028 | 545,707 | 525,199 |
Operating lease liabilities | 52,212 | 55,276 | 61,331 | 0 |
Long-Term Obligations, net of unamortized debt issuance costs | $ 1,054,998 | $ 1,085,453 | 1,129,238 | $ 1,125,993 |
Accounting Standards Update 2016-02 | Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use assets | 83,222 | |||
Prepaid and other | (1,383) | |||
Property, plant and equipment | 5,876 | |||
Current maturities of long-term obligations, net of unamortized debt issuance costs | 2,631 | |||
Accounts payable, accrued and other liabilities | 20,508 | |||
Operating lease liabilities | 61,331 | |||
Long-Term Obligations, net of unamortized debt issuance costs | $ 3,245 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Adoption of Recent Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reclassification of stranded tax effects | $ (6,658) | |||||
Retained earnings | $ 1,643,825 | $ 1,523,820 | ||||
Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reclassification of stranded tax effects | $ 6,700 | $ 6,658 | ||||
Accounting Standards Update 2016-13 | Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | $ (1,400) | |||||
Accounting Standards Update 2014-09 | Adjustment/Effect of Change | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | $ 2,900 |
REVENUE - Revenue by Geographic
REVENUE - Revenue by Geographic Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUE | |||||||||||
Net Sales | $ 749,329 | $ 759,153 | $ 699,305 | $ 721,553 | $ 671,333 | $ 701,278 | $ 742,661 | $ 744,460 | $ 2,929,340 | $ 2,859,732 | $ 2,764,761 |
Beauty + Home | |||||||||||
REVENUE | |||||||||||
Net Sales | 1,298,151 | 1,352,714 | 1,426,382 | ||||||||
Pharma | |||||||||||
REVENUE | |||||||||||
Net Sales | 1,225,779 | 1,091,051 | 954,652 | ||||||||
Food + Beverage | |||||||||||
REVENUE | |||||||||||
Net Sales | 405,410 | 415,967 | 383,727 | ||||||||
Europe | |||||||||||
REVENUE | |||||||||||
Net Sales | 1,604,056 | 1,638,469 | 1,627,478 | ||||||||
Europe | Beauty + Home | |||||||||||
REVENUE | |||||||||||
Net Sales | 681,936 | 792,255 | 816,359 | ||||||||
Europe | Pharma | |||||||||||
REVENUE | |||||||||||
Net Sales | 808,834 | 729,882 | 696,079 | ||||||||
Europe | Food + Beverage | |||||||||||
REVENUE | |||||||||||
Net Sales | 113,286 | 116,332 | 115,040 | ||||||||
Domestic | |||||||||||
REVENUE | |||||||||||
Net Sales | 965,986 | 836,768 | 726,336 | ||||||||
Domestic | Beauty + Home | |||||||||||
REVENUE | |||||||||||
Net Sales | 384,004 | 310,411 | 334,881 | ||||||||
Domestic | Pharma | |||||||||||
REVENUE | |||||||||||
Net Sales | 350,265 | 297,871 | 196,928 | ||||||||
Domestic | Food + Beverage | |||||||||||
REVENUE | |||||||||||
Net Sales | 231,717 | 228,486 | 194,527 | ||||||||
Latin America | |||||||||||
REVENUE | |||||||||||
Net Sales | 194,043 | 220,388 | 235,619 | ||||||||
Latin America | Beauty + Home | |||||||||||
REVENUE | |||||||||||
Net Sales | 141,846 | 160,048 | 178,392 | ||||||||
Latin America | Pharma | |||||||||||
REVENUE | |||||||||||
Net Sales | 23,157 | 26,344 | 25,485 | ||||||||
Latin America | Food + Beverage | |||||||||||
REVENUE | |||||||||||
Net Sales | 29,040 | 33,996 | 31,742 | ||||||||
Asia | |||||||||||
REVENUE | |||||||||||
Net Sales | 165,255 | 164,107 | 175,328 | ||||||||
Asia | Beauty + Home | |||||||||||
REVENUE | |||||||||||
Net Sales | 90,365 | 90,000 | 96,750 | ||||||||
Asia | Pharma | |||||||||||
REVENUE | |||||||||||
Net Sales | 43,523 | 36,954 | 36,160 | ||||||||
Asia | Food + Beverage | |||||||||||
REVENUE | |||||||||||
Net Sales | $ 31,367 | $ 37,153 | $ 42,418 |
REVENUE - Contract Assets and C
REVENUE - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contract asset (current) | $ 16,109 | $ 16,245 |
Increase / (decrease) in contract asset (current) | (136) | |
Contract asset (long-term) | 0 | 0 |
Increase / (decrease) in contract asset (long-term) | 0 | |
Contract liability (current) | 87,188 | 79,305 |
Increase / (decrease) in contract liability (current) | 7,883 | |
Contract liability (long-term) | 21,584 | $ 9,779 |
Increase / (decrease) in contract liability (long-term) | 11,805 | |
Revenue recognized previously included in current contract liabilities | 107,700 | |
Revenue recognized previously included in current contract liabilities at beginning of the year | $ 57,800 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Unearned revenue associated with outstanding contracts | $ 536 | $ 515 |
Estimated revenue to be recognized in 2021 | 136 | |
Estimated revenue to be recognized after 2021 | $ 400 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue remaining performance obligation, period |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventories, by component | ||
Raw materials | $ 116,029 | $ 111,653 |
Work in process | 115,870 | 123,750 |
Finished goods | 147,480 | 140,392 |
Total | $ 379,379 | $ 375,795 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Goodwill) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in the carrying amount of goodwill | |||
Goodwill | $ 900,136,000 | $ 765,076,000 | $ 713,710,000 |
Accumulated impairment losses | (1,615,000) | (1,615,000) | (1,615,000) |
Goodwill, total | 898,521,000 | 763,461,000 | 712,095,000 |
Acquisition | 103,593,000 | 57,934,000 | |
Foreign currency exchange effects | 31,467,000 | (6,568,000) | |
Impairment of goodwill | 0 | 0 | 0 |
Operating segment | Beauty + Home | |||
Changes in the carrying amount of goodwill | |||
Goodwill | 333,111,000 | 221,658,000 | 223,933,000 |
Accumulated impairment losses | 0 | 0 | 0 |
Goodwill, total | 333,111,000 | 221,658,000 | 223,933,000 |
Acquisition | 103,130,000 | 0 | |
Foreign currency exchange effects | 8,323,000 | (2,275,000) | |
Operating segment | Pharma | |||
Changes in the carrying amount of goodwill | |||
Goodwill | 436,731,000 | 413,650,000 | 359,883,000 |
Accumulated impairment losses | 0 | 0 | 0 |
Goodwill, total | 436,731,000 | 413,650,000 | 359,883,000 |
Acquisition | 463,000 | 57,934,000 | |
Foreign currency exchange effects | 22,618,000 | (4,167,000) | |
Operating segment | Food + Beverage | |||
Changes in the carrying amount of goodwill | |||
Goodwill | 128,679,000 | 128,153,000 | 128,279,000 |
Accumulated impairment losses | 0 | 0 | 0 |
Goodwill, total | 128,679,000 | 128,153,000 | 128,279,000 |
Acquisition | 0 | 0 | |
Foreign currency exchange effects | 526,000 | (126,000) | |
Corporate Non-Segment | |||
Changes in the carrying amount of goodwill | |||
Goodwill | 1,615,000 | 1,615,000 | 1,615,000 |
Accumulated impairment losses | (1,615,000) | (1,615,000) | (1,615,000) |
Goodwill, total | 0 | 0 | $ 0 |
Acquisition | 0 | 0 | |
Foreign currency exchange effects | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Summary of Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amortized intangible assets: | |||
Gross Carrying Amount | $ 466,741 | $ 372,417 | |
Accumulated Amortization | (122,432) | (81,333) | |
Net Value | 344,309 | 291,084 | |
Aggregate amortization expense | $ 39,787 | 27,608 | $ 15,455 |
Weighted Average | |||
Amortized intangible assets: | |||
Weighted Average Amortization Period (Years) | 12 years 7 months 6 days | ||
Patents | |||
Amortized intangible assets: | |||
Gross Carrying Amount | $ 2,861 | 2,804 | |
Accumulated Amortization | (1,477) | (1,318) | |
Net Value | $ 1,384 | 1,486 | |
Patents | Weighted Average | |||
Amortized intangible assets: | |||
Weighted Average Amortization Period (Years) | 7 years 2 months 12 days | ||
Acquired technology | |||
Amortized intangible assets: | |||
Gross Carrying Amount | $ 111,854 | 100,511 | |
Accumulated Amortization | (36,943) | (25,430) | |
Net Value | $ 74,911 | 75,081 | |
Acquired technology | Weighted Average | |||
Amortized intangible assets: | |||
Weighted Average Amortization Period (Years) | 12 years 7 months 6 days | ||
Customer relationships | |||
Amortized intangible assets: | |||
Gross Carrying Amount | $ 286,644 | 217,934 | |
Accumulated Amortization | (56,714) | (33,924) | |
Net Value | $ 229,930 | 184,010 | |
Customer relationships | Weighted Average | |||
Amortized intangible assets: | |||
Weighted Average Amortization Period (Years) | 13 years 3 months 18 days | ||
Trademarks and trade names | |||
Amortized intangible assets: | |||
Gross Carrying Amount | $ 46,174 | 35,015 | |
Accumulated Amortization | (17,437) | (11,003) | |
Net Value | $ 28,737 | 24,012 | |
Trademarks and trade names | Weighted Average | |||
Amortized intangible assets: | |||
Weighted Average Amortization Period (Years) | 6 years 3 months 18 days | ||
License agreements and other | |||
Amortized intangible assets: | |||
Gross Carrying Amount | $ 19,208 | 16,153 | |
Accumulated Amortization | (9,861) | (9,658) | |
Net Value | $ 9,347 | $ 6,495 | |
License agreements and other | Weighted Average | |||
Amortized intangible assets: | |||
Weighted Average Amortization Period (Years) | 19 years 3 months 18 days |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 40,195 |
2022 | 39,615 |
2023 | 38,728 |
2024 | 34,954 |
2025 and thereafter | $ 190,817 |
ACCOUNTS PAYABLE, ACCRUED AND_3
ACCOUNTS PAYABLE, ACCRUED AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||||
Accounts payable, principally trade | $ 243,742 | $ 192,739 | ||
Accrued employee compensation costs | 177,144 | 163,839 | ||
Customer deposits and other unearned income | 87,052 | 86,820 | ||
Other accrued liabilities | 154,525 | 129,630 | ||
Total | $ 662,463 | $ 573,028 | $ 545,707 | $ 525,199 |
ACCOUNTS PAYABLE, ACCRUED AND_4
ACCOUNTS PAYABLE, ACCRUED AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||||
Accounts payable, principally trade | $ 243,742 | $ 192,739 | ||
Accrued employee compensation costs | 177,144 | 163,839 | ||
Customer deposits and other unearned income | 87,052 | 86,820 | ||
Other accrued liabilities | 154,525 | 129,630 | ||
Accounts payable, accrued and other liabilities | $ 662,463 | $ 573,028 | $ 545,707 | $ 525,199 |
INCOME TAXES Provision (Benefit
INCOME TAXES Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income before income taxes: | |||
United States | $ 91,555 | $ 94,612 | $ 34,404 |
International | 209,600 | 247,457 | 231,616 |
Income before Income Taxes | 301,155 | 342,069 | 266,020 |
Current: | |||
U.S. Federal | 9,934 | 2,129 | 10,273 |
State/Local | 3,094 | 883 | 877 |
International | 82,235 | 88,084 | 83,456 |
Total Current | 95,263 | 91,096 | 94,606 |
Deferred: | |||
U.S. Federal/State | (2,270) | 4,670 | (17,019) |
International | (5,928) | 4,076 | (6,333) |
Total Deferred | (8,198) | 8,746 | (23,352) |
Actual income tax provision | $ 87,065 | $ 99,842 | $ 71,254 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation Allowance [Line Items] | |||
Tax benefit from deferred tax change | $ 3,000 | ||
Excess tax benefits from share-based compensation | (11,625) | $ (15,370) | $ (13,400) |
U.S. Global Intangible Low-Taxed Income ("GILTI") and Base Erosion Anti-Abuse Tax ("BEAT") | (3,909) | (1,485) | 5,625 |
Deferred Tax Assets, Valuation Allowance | 23,105 | 23,320 | |
Net operating loss carryforwards | 19,353 | 24,941 | |
Amount of state tax credit carryforwards subject to expiration | 7,000 | ||
Tax-effected net operating loss carryforwards not subject to expiration | 15,800 | ||
Tax-effected net operating loss subject to expiration | 3,600 | ||
Contingent foreign income tax payable on uncertain tax positions | 1,500 | ||
Unrecognized tax benefits that would impact effective tax rate | 4,500 | ||
Decrease in unrecognized tax benefits is reasonably possible | 2,600 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | 3,600 | 1,700 | 1,900 |
Unrecognized tax expense (benefit), income tax penalties and interest expense | 0 | $ (200) | $ 400 |
Minimum | Foreign Tax Authority | |||
Valuation Allowance [Line Items] | |||
Estimated additional tax payable on previously unremitted earnings | 15,000 | ||
Maximum | Foreign Tax Authority | |||
Valuation Allowance [Line Items] | |||
Estimated additional tax payable on previously unremitted earnings | 25,000 | ||
Deferred tax assets for specified locations | |||
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | 16,700 | ||
Deferred tax assets related to tax credit carryforwards, U.S. state | |||
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | $ 3,700 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax at statutory rate | $ 63,243 | $ 71,835 | $ 55,864 |
State income taxes (benefits), net of federal tax effect | 2,396 | 2,622 | (1,516) |
Investment incentives | (483) | (2,530) | (1,900) |
Tax resolutions | 820 | (1,915) | (3,400) |
Excess tax benefits from share-based compensation | (11,625) | (15,370) | (13,400) |
Deferred tax charges (benefits), incl. tax rate changes | 4,110 | 0 | (2,800) |
U.S. Global Intangible Low-Taxed Income ("GILTI") and Base Erosion Anti-Abuse Tax ("BEAT") | (3,909) | (1,485) | 5,625 |
U.S. tax reform - transition tax | 0 | 0 | (2,570) |
Valuation allowance | 1,332 | 10,623 | 3,170 |
Rate differential on earnings of foreign operations | 24,901 | 32,657 | 29,024 |
Other items, net | 6,280 | 3,405 | 3,157 |
Actual income tax provision | $ 87,065 | $ 99,842 | $ 71,254 |
Effective income tax rate | 28.90% | 29.20% | 26.80% |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Assets: | ||
Net operating loss carryforwards | $ 19,353 | $ 24,941 |
Operating and finance leases | 24,529 | 25,440 |
Pension liabilities | 36,085 | 24,925 |
Share-based compensation | 5,946 | 6,082 |
U.S. federal tax credits | 8,826 | 8,575 |
U.S. state tax credits | 7,011 | 7,881 |
Vacation and bonus | 12,307 | 7,645 |
Research and development | 8,992 | 7,539 |
Inventory | 4,854 | 5,993 |
Workers compensation | 3,353 | 3,835 |
Other | 16,643 | 16,496 |
Total gross deferred tax assets | 147,899 | 139,352 |
Less valuation allowance | (23,105) | (23,320) |
Net deferred tax assets | 124,794 | 116,032 |
Deferred Tax Liabilities: | ||
Acquisition related intangibles | 57,295 | 62,851 |
Depreciation and amortization | 27,737 | 28,284 |
Operating and finance leases | 26,549 | 27,555 |
Other | 8,044 | 6,215 |
Total gross deferred tax liabilities | 119,625 | 124,905 |
Net deferred tax assets (liabilities) | $ 5,169 | |
Net deferred tax assets (liabilities) | $ (8,873) |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Income Tax Uncertainties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of the beginning and ending amount of income tax uncertainties | |||
Balance at the beginning of period | $ 3,647 | $ 3,559 | $ 3,080 |
Increases based on tax positions for the current year | 212 | 412 | 360 |
Increases based on tax positions of prior years | 790 | 663 | 610 |
Settlements | 0 | (558) | (491) |
Lapse of statute of limitations | (145) | (429) | 0 |
Balance at the end of period | $ 4,504 | $ 3,647 | $ 3,559 |
DEBT - Short-term Debt Obligati
DEBT - Short-term Debt Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Short-term Debt [Line Items] | ||
Notes payable, revolving credit facility and overdrafts | $ 52,200 | $ 44,259 |
Notes payable | ||
Short-term Debt [Line Items] | ||
Interest rate | 0.00% | |
Notes payable, revolving credit facility and overdrafts | $ 200 | 1,436 |
Revolving credit facility | ||
Short-term Debt [Line Items] | ||
Interest rate | 1.45% | |
Notes payable, revolving credit facility and overdrafts | $ 52,000 | 25,000 |
Overdrafts | ||
Short-term Debt [Line Items] | ||
Notes payable, revolving credit facility and overdrafts | $ 0 | $ 17,823 |
Overdrafts | Minimum | ||
Short-term Debt [Line Items] | ||
Interest rate | 5.68% | |
Overdrafts | Maximum | ||
Short-term Debt [Line Items] | ||
Interest rate | 7.82% |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($)tranche | Dec. 31, 2019USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | |
Debt Instrument [Line Items] | |||||
Short-term borrowing | $ 52,200,000 | $ 52,200,000 | $ 44,259,000 | ||
Money Market Borrowing Arrangement | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowing, maximum amount outstanding during period | 30,000,000 | ||||
Short-term borrowing | 0 | $ 0 | |||
Five Year Revolving Credit Facility Maturing In July2022 | |||||
Debt Instrument [Line Items] | |||||
Number of tranches | tranche | 2 | ||||
Line of credit facility, maximum borrowing capacity | 300,000,000 | $ 300,000,000 | € 150,000,000 | ||
Long-term line of credit | 52,000,000 | 52,000,000 | 25,000,000 | € 0 | € 0 |
Compensating balance, amount | $ 0 | 0 | |||
Unsecured Lines Of Credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, average outstanding amount | $ 108,100,000 | $ 34,100,000 | |||
Short-term debt, weighted average interest rate, over time | 1.50% | 1.60% | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Interest and fees | $ 2,500,000 | $ 1,500,000 |
DEBT - Long-Term Obligations (D
DEBT - Long-Term Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||
Total finance lease liabilities | $ 30,025 | $ 29,952 | ||
Unamortized debt issuance costs | (1,663) | (2,241) | ||
Long-term debt and lease obligation, including current maturities | 1,120,664 | 1,151,441 | ||
Current maturities of long-term obligations | (65,666) | (65,988) | $ (65,309) | $ (62,678) |
Long-Term Obligations, net of unamortized debt issuance costs | $ 1,054,998 | 1,085,453 | $ 1,129,238 | $ 1,125,993 |
Consolidated leverage ratio | 1.63 | |||
Consolidated interest coverage ratio | 16.86 | |||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Consolidated interest coverage ratio | 3 | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Consolidated leverage ratio | 3.50 | |||
Notes payable 0.00% – 10.90%, due in monthly and annual installments through 2028 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 14,002 | 19,220 | ||
Notes payable 0.00% – 10.90%, due in monthly and annual installments through 2028 | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate on notes | 0.00% | |||
Notes payable 0.00% – 10.90%, due in monthly and annual installments through 2028 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate on notes | 10.90% | |||
Senior unsecured notes 3.2%, due in 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 75,000 | 75,000 | ||
Interest rate on notes | 3.20% | |||
Senior unsecured debts 1.7% USD floating swapped to 1.36% EUR fixed, equal annual installments through 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 112,000 | 168,000 | ||
Interest rate on notes | 1.36% | |||
Floating interest rate prior to conversion to fixed interest rate | 1.70% | |||
Senior unsecured notes 3.5%, due in 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 125,000 | 125,000 | ||
Interest rate on notes | 3.50% | |||
Senior unsecured notes 1.0%, due in 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 122,100 | 112,170 | ||
Interest rate on notes | 1.00% | |||
Senior unsecured notes 3.4%, due in 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 50,000 | 50,000 | ||
Interest rate on notes | 3.40% | |||
Senior unsecured notes 3.5%, due in 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 100,000 | 100,000 | ||
Interest rate on notes | 3.50% | |||
Senior unsecured notes 1.2%, due in 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 244,200 | 224,340 | ||
Interest rate on notes | 1.20% | |||
Senior unsecured notes 3.6%, due in 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 125,000 | 125,000 | ||
Interest rate on notes | 3.60% | |||
Senior unsecured notes 3.6%, due in 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 125,000 | $ 125,000 | ||
Interest rate on notes | 3.60% |
DEBT - Long-Term Maturities (De
DEBT - Long-Term Maturities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 61,408 |
2022 | 135,550 |
2023 | 249,788 |
2024 | 395,215 |
2025 | 125,251 |
Thereafter | $ 125,090 |
LEASE COMMITMENTS - Components
LEASE COMMITMENTS - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Components of lease expense: | ||
Operating lease cost | $ 23,968 | $ 23,410 |
Finance lease cost: | ||
Amortization of right-of-use assets | 3,982 | 4,217 |
Interest on lease liabilities | 1,414 | 1,353 |
Total finance lease cost | 5,396 | 5,570 |
Short-term lease and variable lease costs | $ 9,421 | $ 8,629 |
LEASE COMMITMENTS - Supplementa
LEASE COMMITMENTS - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 23,484 | $ 21,872 |
Operating cash flows from finance leases | 1,372 | 1,245 |
Financing cash flows from finance leases | 4,436 | 4,730 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 24,477 | 15,226 |
Finance leases | $ 3,642 | $ 15,957 |
LEASE COMMITMENTS - Supplemen_2
LEASE COMMITMENTS - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating Leases | ||||
Operating lease right-of-use assets | $ 69,845 | $ 72,377 | $ 83,222 | $ 0 |
Accounts payable, accrued and other liabilities | 18,804 | 16,578 | ||
Operating lease liabilities | 52,212 | 55,276 | $ 61,331 | $ 0 |
Total operating lease liabilities | $ 71,016 | $ 71,854 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseLiabilityNoncurrent | us-gaap:OperatingLeaseLiabilityNoncurrent | ||
Finance Leases | ||||
Property, plant and equipment, gross | $ 49,760 | $ 47,020 | ||
Accumulated depreciation | (7,258) | (4,271) | ||
Property, plant and equipment, net | 42,502 | 42,749 | ||
Current maturities of long-term obligations, net of unamortized debt issuance cost | 4,258 | 4,318 | ||
Long-term obligations, net of unamortized debt issuance cost | 25,767 | 25,634 | ||
Total finance lease liabilities | $ 30,025 | $ 29,952 | ||
Weighted Average Remaining Lease Term (in years) | ||||
Operating leases | 5 years | 6 years 1 month 6 days | ||
Finance leases | 7 years 2 months 12 days | 7 years | ||
Weighted Average Discount Rate | ||||
Operating leases | 4.21% | 5.05% | ||
Finance leases | 4.85% | 5.13% |
LEASE COMMITMENTS - Maturities
LEASE COMMITMENTS - Maturities of Lease Liabilities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Maturities of operating lease liabilities: | ||
Year 1 | $ 21,351,000 | |
Year 2 | 18,278,000 | |
Year 3 | 10,999,000 | |
Year 4 | 7,844,000 | |
Year 5 | 6,388,000 | |
Thereafter | 14,880,000 | |
Total lease payments | 79,740,000 | |
Less imputed interest | (8,724,000) | |
Total operating lease liabilities | 71,016,000 | $ 71,854,000 |
Maturities of finance lease liabilities: | ||
Year 1 | 5,542,000 | |
Year 2 | 4,378,000 | |
Year 3 | 3,509,000 | |
Year 4 | 2,973,000 | |
Year 5 | 2,918,000 | |
Thereafter | 18,080,000 | |
Total lease payments | 37,400,000 | |
Less imputed interest | (7,375,000) | |
Total finance lease liabilities | 30,025,000 | $ 29,952,000 |
Amount of additional operating leases that have not yet commenced | 100,000 | |
Amount of additional finance leases that have not yet commenced | $ 0 | |
Minimum | ||
Maturities of finance lease liabilities: | ||
Term of operating and finance leases that have not yet commenced (in years) | 3 years | |
Maximum | ||
Maturities of finance lease liabilities: | ||
Term of operating and finance leases that have not yet commenced (in years) | 4 years |
RETIREMENT AND DEFERRED COMPE_3
RETIREMENT AND DEFERRED COMPENSATION PLANS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
United States | ||||||
Change in benefit obligation: | ||||||
Benefit obligation at beginning of year | $ 227,275 | $ 180,803 | ||||
Service cost | 14,278 | 11,093 | $ 11,396 | |||
Interest cost | 7,046 | 7,381 | 6,878 | |||
Special termination benefit charge | 0 | 0 | ||||
Plan Amendment | 0 | 0 | ||||
Curtailment/Settlement | 0 | 0 | ||||
Transfer | 0 | 0 | ||||
Prior service cost | 0 | 0 | ||||
Actuarial loss (gain) | 38,175 | 39,209 | ||||
Benefits paid | (14,303) | (11,211) | ||||
Foreign currency translation adjustment | 0 | 0 | ||||
Benefit obligation at end of year | 272,471 | 227,275 | 180,803 | |||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 188,801 | 169,958 | ||||
Actual return on plan assets | 17,088 | 29,618 | ||||
Employer contribution | 448 | 436 | ||||
Benefits paid | (14,303) | (11,211) | ||||
Transfer | 0 | 0 | ||||
Foreign currency translation adjustment | 0 | 0 | ||||
Fair value of plan assets at end of year | 192,034 | 188,801 | 169,958 | |||
Funded status at end of year | $ (80,437) | $ (38,474) | ||||
Funded status amounts recognized in Consolidated Balance Sheet | ||||||
Non-current assets | 0 | 0 | ||||
Current liabilities | (461) | (449) | ||||
Non-current liabilities | (79,976) | (38,025) | ||||
Funded status amount | (80,437) | (38,474) | ||||
Amounts recognized in accumulated other comprehensive loss | ||||||
Net actuarial loss | 96,440 | 68,789 | ||||
Net prior service cost | 0 | 0 | ||||
Tax effects | (22,181) | (15,821) | ||||
Net amount recognized | 74,259 | 52,968 | ||||
Changes in benefit obligations and plan assets recognized in other comprehensive income | ||||||
Current year actuarial (loss) gain | (33,335) | (21,970) | 4,611 | |||
Amortization of net loss | 5,684 | 1,957 | 4,873 | |||
Net amount recognized | (27,651) | (20,013) | 9,484 | |||
Components of net periodic benefit cost: | ||||||
Service cost | 14,278 | 11,093 | 11,396 | |||
Interest cost | 7,046 | 7,381 | 6,878 | |||
Expected return on plan assets | (12,248) | (12,379) | (11,257) | |||
Amortization of net loss | 5,684 | 1,957 | 4,873 | |||
Net periodic benefit cost | $ 14,760 | $ 8,052 | $ 11,890 | |||
Accumulated benefit obligation | 249,800 | 205,300 | ||||
Projected benefit obligation ("PBO"), ABO, and fair value of plan assets for all pension plans with an ABO in excess of plan assets | ||||||
Projected benefit obligation | 272,471 | 227,275 | ||||
Accumulated benefit obligation | 249,831 | 205,326 | ||||
Fair value of plan assets | 192,034 | 188,801 | ||||
PBO, ABO, and fair value of plan assets for all pension plans with a PBO in excess of plan assets | ||||||
Projected benefit obligation | 272,471 | 227,275 | ||||
Accumulated benefit obligation | 249,831 | 205,326 | ||||
Fair value of plan assets | $ 192,034 | $ 188,801 | ||||
Weighted-average assumptions used to determine benefit obligations | ||||||
Discount rate | 2.40% | 3.20% | 4.20% | |||
Rate of compensation increase | 3.19% | 4.00% | 4.00% | |||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Discount rate | 3.20% | 4.20% | 3.55% | |||
Expected long-term return on plan assets | 7.00% | 7.00% | 7.00% | |||
Rate of compensation increase | 4.00% | 4.00% | 4.00% | |||
Plan assets, actual allocation percentage | 100.00% | 100.00% | ||||
Plan Assets: | ||||||
Total investments | $ 192,034 | $ 169,958 | $ 169,958 | $ 192,034 | $ 188,801 | $ 169,958 |
United States | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 188,801 | |||||
Fair value of plan assets at end of year | 192,034 | 188,801 | ||||
Plan Assets: | ||||||
Total investments | 188,801 | 188,801 | $ 192,034 | $ 188,801 | ||
United States | Equity Securities | ||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Plan assets, actual allocation percentage | 48.00% | 49.00% | ||||
Target allocation percentage | 60.00% | |||||
United States | Fixed Income Funds | ||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Plan assets, actual allocation percentage | 28.00% | 29.00% | ||||
United States | Corporate debts securities | ||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Plan assets, actual allocation percentage | 0.00% | 0.00% | ||||
United States | Hedge Fund | ||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Plan assets, actual allocation percentage | 10.00% | 10.00% | ||||
United States | Investment Funds | ||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Plan assets, actual allocation percentage | 0.00% | 0.00% | ||||
United States | Infrastructure | ||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Plan assets, actual allocation percentage | 7.00% | 6.00% | ||||
United States | Money market | ||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Plan assets, actual allocation percentage | 2.00% | 1.00% | ||||
United States | Fixed income securities and infrastructure | ||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Target allocation percentage | 40.00% | |||||
United States | Real Estate Funds | ||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Plan assets, actual allocation percentage | 5.00% | 5.00% | ||||
United States | Fair Value, Inputs, Level 1, 2 and 3 | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 119,883 | |||||
Fair value of plan assets at end of year | 121,939 | 119,883 | ||||
Plan Assets: | ||||||
Total investments | 119,883 | 119,883 | $ 121,939 | $ 119,883 | ||
United States | Fair Value, Inputs, Level 1, 2 and 3 | Cash and Short Term Securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 1,988 | |||||
Fair value of plan assets at end of year | 3,207 | 1,988 | ||||
Plan Assets: | ||||||
Total investments | 1,988 | 1,988 | 3,207 | 1,988 | ||
United States | Fair Value, Inputs, Level 1, 2 and 3 | Cash and Short Term Securities | USD | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Fair Value, Inputs, Level 1, 2 and 3 | Cash and Short Term Securities | EUR | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Fair Value, Inputs, Level 1, 2 and 3 | Cash and Short Term Securities | Others | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Fair Value, Inputs, Level 1, 2 and 3 | Equity Securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 81,997 | |||||
Fair value of plan assets at end of year | 83,041 | 81,997 | ||||
Plan Assets: | ||||||
Total investments | 81,997 | 81,997 | 83,041 | 81,997 | ||
United States | Fair Value, Inputs, Level 1, 2 and 3 | US Large Cap Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Fair Value, Inputs, Level 1, 2 and 3 | US Small Cap Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Fair Value, Inputs, Level 1, 2 and 3 | International Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Fair Value, Inputs, Level 1, 2 and 3 | Fixed Income Funds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 35,898 | |||||
Fair value of plan assets at end of year | 35,691 | 35,898 | ||||
Plan Assets: | ||||||
Total investments | 35,898 | 35,898 | 35,691 | 35,898 | ||
United States | Fair Value, Inputs, Level 1, 2 and 3 | Corporate debts securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Fair Value, Inputs, Level 1, 2 and 3 | Euro Corporate Bonds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Fair Value, Inputs, Level 1, 2 and 3 | Investment Funds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Fair Value, Inputs, Level 1, 2 and 3 | Mutual Funds in Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Fair Value, Inputs, Level 1, 2 and 3 | Mutual Funds in Bonds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Fair Value, Inputs, Level 1, 2 and 3 | Mutual Funds Diversified | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 1 | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 119,883 | |||||
Fair value of plan assets at end of year | 121,939 | 119,883 | ||||
Plan Assets: | ||||||
Total investments | 119,883 | 119,883 | 121,939 | 119,883 | ||
United States | Level 1 | Cash and Short Term Securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 1,988 | |||||
Fair value of plan assets at end of year | 3,207 | 1,988 | ||||
Plan Assets: | ||||||
Total investments | 1,988 | 1,988 | 3,207 | 1,988 | ||
United States | Level 1 | Cash and Short Term Securities | USD | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 1,988 | |||||
Fair value of plan assets at end of year | 3,207 | 1,988 | ||||
Plan Assets: | ||||||
Total investments | 1,988 | 1,988 | 3,207 | 1,988 | ||
United States | Level 1 | Cash and Short Term Securities | EUR | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 1 | Cash and Short Term Securities | Others | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 1 | Equity Securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 81,997 | |||||
Fair value of plan assets at end of year | 83,041 | 81,997 | ||||
Plan Assets: | ||||||
Total investments | 81,997 | 81,997 | 83,041 | 81,997 | ||
United States | Level 1 | US Large Cap Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 48,580 | |||||
Fair value of plan assets at end of year | 48,138 | 48,580 | ||||
Plan Assets: | ||||||
Total investments | 48,580 | 48,580 | 48,138 | 48,580 | ||
United States | Level 1 | US Small Cap Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 9,921 | |||||
Fair value of plan assets at end of year | 10,299 | 9,921 | ||||
Plan Assets: | ||||||
Total investments | 9,921 | 9,921 | 10,299 | 9,921 | ||
United States | Level 1 | International Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 23,496 | |||||
Fair value of plan assets at end of year | 24,604 | 23,496 | ||||
Plan Assets: | ||||||
Total investments | 23,496 | 23,496 | 24,604 | 23,496 | ||
United States | Level 1 | Fixed Income Funds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 35,898 | |||||
Fair value of plan assets at end of year | 35,691 | 35,898 | ||||
Plan Assets: | ||||||
Total investments | 35,898 | 35,898 | 35,691 | 35,898 | ||
United States | Level 1 | Corporate debts securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 1 | Euro Corporate Bonds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 1 | Investment Funds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 1 | Mutual Funds in Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 1 | Mutual Funds in Bonds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 1 | Mutual Funds Diversified | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 2 | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 2 | Cash and Short Term Securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 2 | Cash and Short Term Securities | USD | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 2 | Cash and Short Term Securities | EUR | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 2 | Cash and Short Term Securities | Others | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 2 | Equity Securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 2 | US Large Cap Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 2 | US Small Cap Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 2 | International Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 2 | Fixed Income Funds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 2 | Corporate debts securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 2 | Euro Corporate Bonds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 2 | Investment Funds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 2 | Mutual Funds in Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 2 | Mutual Funds in Bonds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 2 | Mutual Funds Diversified | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 3 | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 3 | Cash and Short Term Securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 3 | Cash and Short Term Securities | USD | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 3 | Cash and Short Term Securities | EUR | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 3 | Cash and Short Term Securities | Others | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 3 | Equity Securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 3 | US Large Cap Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 3 | US Small Cap Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 3 | International Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 3 | Fixed Income Funds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 3 | Corporate debts securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 3 | Euro Corporate Bonds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 3 | Investment Funds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 3 | Mutual Funds in Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 3 | Mutual Funds in Bonds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Level 3 | Mutual Funds Diversified | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
United States | Net Asset Value per Share | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 68,918 | |||||
Fair value of plan assets at end of year | 70,095 | 68,918 | ||||
Plan Assets: | ||||||
Total investments | 68,918 | 68,918 | 70,095 | 68,918 | ||
Foreign Plans | ||||||
Change in benefit obligation: | ||||||
Benefit obligation at beginning of year | 120,490 | 104,911 | ||||
Service cost | 7,311 | 5,921 | 5,954 | |||
Interest cost | 1,410 | 2,023 | 1,828 | |||
Special termination benefit charge | 0 | 64 | ||||
Plan Amendment | 0 | 18 | ||||
Curtailment/Settlement | 0 | (271) | ||||
Transfer | 0 | 939 | ||||
Prior service cost | (2,701) | (451) | ||||
Actuarial loss (gain) | 1,809 | 13,575 | ||||
Benefits paid | (5,145) | (4,130) | ||||
Foreign currency translation adjustment | 11,252 | (2,109) | ||||
Benefit obligation at end of year | 134,426 | 120,490 | 104,911 | |||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 74,189 | 68,992 | ||||
Actual return on plan assets | 2,008 | 3,851 | ||||
Employer contribution | 7,527 | 6,542 | ||||
Benefits paid | (5,145) | (4,130) | ||||
Transfer | 0 | 359 | ||||
Foreign currency translation adjustment | 6,508 | (1,425) | ||||
Fair value of plan assets at end of year | 85,087 | 74,189 | 68,992 | |||
Funded status at end of year | (49,339) | (46,301) | ||||
Funded status amounts recognized in Consolidated Balance Sheet | ||||||
Non-current assets | 81 | 938 | ||||
Current liabilities | (37) | (44) | ||||
Non-current liabilities | (49,383) | (47,195) | ||||
Funded status amount | (49,339) | (46,301) | ||||
Amounts recognized in accumulated other comprehensive loss | ||||||
Net actuarial loss | 40,851 | 40,442 | ||||
Net prior service cost | 675 | 3,774 | ||||
Tax effects | (13,466) | (14,040) | ||||
Net amount recognized | 28,060 | 30,176 | ||||
Changes in benefit obligations and plan assets recognized in other comprehensive income | ||||||
Current year actuarial (loss) gain | (2,530) | (11,999) | 534 | |||
Current year prior service cost | 2,701 | 451 | (35) | |||
Transfer Prior service Cost | 0 | (18) | 0 | |||
Transfer Actuarial (loss) gain | 0 | (126) | 0 | |||
Recognition due to curtailment | 0 | 0 | 1,692 | |||
Amortization of net loss | 2,121 | 1,444 | 1,716 | |||
Amortization of prior service cost | 398 | 449 | 720 | |||
Net amount recognized | 2,690 | (9,799) | 4,627 | |||
Components of net periodic benefit cost: | ||||||
Service cost | 7,311 | 5,921 | 5,954 | |||
Interest cost | 1,410 | 2,023 | 1,828 | |||
Expected return on plan assets | (2,620) | (2,366) | (2,610) | |||
Amortization of net loss | 2,121 | 1,444 | 1,716 | |||
Amortization of prior service cost | 398 | 449 | 720 | |||
Net periodic benefit cost | 8,620 | 7,471 | 7,608 | |||
Curtailment | (8) | (246) | (59) | |||
Special termination benefit charge | 0 | 65 | 62 | |||
Total Net periodic benefit cost | $ 8,612 | $ 7,290 | $ 7,611 | |||
Accumulated benefit obligation | 103,100 | 91,800 | ||||
Projected benefit obligation ("PBO"), ABO, and fair value of plan assets for all pension plans with an ABO in excess of plan assets | ||||||
Projected benefit obligation | 120,795 | 92,561 | ||||
Accumulated benefit obligation | 89,702 | 65,062 | ||||
Fair value of plan assets | 71,457 | 46,371 | ||||
PBO, ABO, and fair value of plan assets for all pension plans with a PBO in excess of plan assets | ||||||
Projected benefit obligation | 130,616 | 102,310 | ||||
Accumulated benefit obligation | 98,360 | 73,943 | ||||
Fair value of plan assets | $ 79,764 | $ 55,260 | ||||
Weighted-average assumptions used to determine benefit obligations | ||||||
Discount rate | 0.54% | 1.04% | 1.82% | |||
Rate of compensation increase | 3.05% | 3.05% | 3.01% | |||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Discount rate | 1.12% | 1.84% | 1.62% | |||
Expected long-term return on plan assets | 3.41% | 3.69% | 3.66% | |||
Rate of compensation increase | 3.05% | 3.05% | 3.02% | |||
Plan assets, actual allocation percentage | 100.00% | 100.00% | ||||
Plan Assets: | ||||||
Total investments | $ 85,087 | $ 68,992 | $ 68,992 | $ 85,087 | $ 74,189 | $ 68,992 |
Foreign Plans | Equity Securities | ||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Plan assets, actual allocation percentage | 5.00% | 4.00% | ||||
Foreign Plans | Fixed Income Funds | ||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Plan assets, actual allocation percentage | 1.00% | 1.00% | ||||
Foreign Plans | Corporate debts securities | ||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Plan assets, actual allocation percentage | 2.00% | 3.00% | ||||
Foreign Plans | Hedge Fund | ||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Plan assets, actual allocation percentage | 0.00% | 0.00% | ||||
Foreign Plans | Investment Funds | ||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Plan assets, actual allocation percentage | 92.00% | 89.00% | ||||
Target allocation percentage | 100.00% | |||||
Foreign Plans | Infrastructure | ||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Plan assets, actual allocation percentage | 0.00% | 0.00% | ||||
Foreign Plans | Money market | ||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Plan assets, actual allocation percentage | 0.00% | 3.00% | ||||
Foreign Plans | Real Estate Funds | ||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||
Plan assets, actual allocation percentage | 0.00% | 0.00% | ||||
Foreign Plans | Fair Value, Inputs, Level 1, 2 and 3 | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 74,189 | |||||
Fair value of plan assets at end of year | 85,087 | 74,189 | ||||
Plan Assets: | ||||||
Total investments | 74,189 | 74,189 | $ 85,087 | $ 74,189 | ||
Foreign Plans | Fair Value, Inputs, Level 1, 2 and 3 | Cash and Short Term Securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 2,030 | |||||
Fair value of plan assets at end of year | 415 | 2,030 | ||||
Plan Assets: | ||||||
Total investments | 2,030 | 2,030 | 415 | 2,030 | ||
Foreign Plans | Fair Value, Inputs, Level 1, 2 and 3 | Cash and Short Term Securities | USD | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Fair Value, Inputs, Level 1, 2 and 3 | Cash and Short Term Securities | EUR | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Fair Value, Inputs, Level 1, 2 and 3 | Cash and Short Term Securities | Others | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Fair Value, Inputs, Level 1, 2 and 3 | Equity Securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 2,995 | |||||
Fair value of plan assets at end of year | 4,107 | 2,995 | ||||
Plan Assets: | ||||||
Total investments | 2,995 | 2,995 | 4,107 | 2,995 | ||
Foreign Plans | Fair Value, Inputs, Level 1, 2 and 3 | US Large Cap Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Fair Value, Inputs, Level 1, 2 and 3 | US Small Cap Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Fair Value, Inputs, Level 1, 2 and 3 | International Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Fair Value, Inputs, Level 1, 2 and 3 | Fixed Income Funds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 820 | |||||
Fair value of plan assets at end of year | 834 | 820 | ||||
Plan Assets: | ||||||
Total investments | 820 | 820 | 834 | 820 | ||
Foreign Plans | Fair Value, Inputs, Level 1, 2 and 3 | Corporate debts securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 2,115 | |||||
Fair value of plan assets at end of year | 1,555 | 2,115 | ||||
Plan Assets: | ||||||
Total investments | 2,115 | 2,115 | 1,555 | 2,115 | ||
Foreign Plans | Fair Value, Inputs, Level 1, 2 and 3 | Euro Corporate Bonds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Fair Value, Inputs, Level 1, 2 and 3 | Investment Funds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 66,229 | |||||
Fair value of plan assets at end of year | 78,176 | 66,229 | ||||
Plan Assets: | ||||||
Total investments | 66,229 | 66,229 | 78,176 | 66,229 | ||
Foreign Plans | Fair Value, Inputs, Level 1, 2 and 3 | Mutual Funds in Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Fair Value, Inputs, Level 1, 2 and 3 | Mutual Funds in Bonds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Fair Value, Inputs, Level 1, 2 and 3 | Mutual Funds Diversified | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 1 | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 31,757 | |||||
Fair value of plan assets at end of year | 34,411 | 31,757 | ||||
Plan Assets: | ||||||
Total investments | 31,757 | 31,757 | 34,411 | 31,757 | ||
Foreign Plans | Level 1 | Cash and Short Term Securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 2,030 | |||||
Fair value of plan assets at end of year | 415 | 2,030 | ||||
Plan Assets: | ||||||
Total investments | 2,030 | 2,030 | 415 | 2,030 | ||
Foreign Plans | Level 1 | Cash and Short Term Securities | USD | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 1 | Cash and Short Term Securities | EUR | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 2,012 | |||||
Fair value of plan assets at end of year | 404 | 2,012 | ||||
Plan Assets: | ||||||
Total investments | 2,012 | 2,012 | 404 | 2,012 | ||
Foreign Plans | Level 1 | Cash and Short Term Securities | Others | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 18 | |||||
Fair value of plan assets at end of year | 11 | 18 | ||||
Plan Assets: | ||||||
Total investments | 18 | 18 | 11 | 18 | ||
Foreign Plans | Level 1 | Equity Securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 2,995 | |||||
Fair value of plan assets at end of year | 4,107 | 2,995 | ||||
Plan Assets: | ||||||
Total investments | 2,995 | 2,995 | 4,107 | 2,995 | ||
Foreign Plans | Level 1 | US Large Cap Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 1 | US Small Cap Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 1 | International Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 2,995 | |||||
Fair value of plan assets at end of year | 4,107 | 2,995 | ||||
Plan Assets: | ||||||
Total investments | 2,995 | 2,995 | 4,107 | 2,995 | ||
Foreign Plans | Level 1 | Fixed Income Funds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 820 | |||||
Fair value of plan assets at end of year | 834 | 820 | ||||
Plan Assets: | ||||||
Total investments | 820 | 820 | 834 | 820 | ||
Foreign Plans | Level 1 | Corporate debts securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 2,115 | |||||
Fair value of plan assets at end of year | 1,555 | 2,115 | ||||
Plan Assets: | ||||||
Total investments | 2,115 | 2,115 | 1,555 | 2,115 | ||
Foreign Plans | Level 1 | Euro Corporate Bonds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 2,115 | |||||
Fair value of plan assets at end of year | 1,555 | 2,115 | ||||
Plan Assets: | ||||||
Total investments | 2,115 | 2,115 | 1,555 | 2,115 | ||
Foreign Plans | Level 1 | Investment Funds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 23,797 | |||||
Fair value of plan assets at end of year | 27,500 | 23,797 | ||||
Plan Assets: | ||||||
Total investments | 23,797 | 23,797 | 27,500 | 23,797 | ||
Foreign Plans | Level 1 | Mutual Funds in Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 4,025 | |||||
Fair value of plan assets at end of year | 4,022 | 4,025 | ||||
Plan Assets: | ||||||
Total investments | 4,025 | 4,025 | 4,022 | 4,025 | ||
Foreign Plans | Level 1 | Mutual Funds in Bonds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 18,881 | |||||
Fair value of plan assets at end of year | 22,475 | 18,881 | ||||
Plan Assets: | ||||||
Total investments | 18,881 | 18,881 | 22,475 | 18,881 | ||
Foreign Plans | Level 1 | Mutual Funds Diversified | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 891 | |||||
Fair value of plan assets at end of year | 1,003 | 891 | ||||
Plan Assets: | ||||||
Total investments | 891 | 891 | 1,003 | 891 | ||
Foreign Plans | Level 2 | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 42,432 | |||||
Fair value of plan assets at end of year | 50,676 | 42,432 | ||||
Plan Assets: | ||||||
Total investments | 42,432 | 42,432 | 50,676 | 42,432 | ||
Foreign Plans | Level 2 | Cash and Short Term Securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 2 | Cash and Short Term Securities | USD | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 2 | Cash and Short Term Securities | EUR | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 2 | Cash and Short Term Securities | Others | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 2 | Equity Securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 2 | US Large Cap Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 2 | US Small Cap Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 2 | International Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 2 | Fixed Income Funds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 2 | Corporate debts securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 2 | Euro Corporate Bonds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 2 | Investment Funds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 42,432 | |||||
Fair value of plan assets at end of year | 50,676 | 42,432 | ||||
Plan Assets: | ||||||
Total investments | 42,432 | 42,432 | 50,676 | 42,432 | ||
Foreign Plans | Level 2 | Mutual Funds in Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 2 | Mutual Funds in Bonds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 2 | Mutual Funds Diversified | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 42,432 | |||||
Fair value of plan assets at end of year | 50,676 | 42,432 | ||||
Plan Assets: | ||||||
Total investments | 42,432 | 42,432 | 50,676 | 42,432 | ||
Foreign Plans | Level 3 | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 3 | Cash and Short Term Securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 3 | Cash and Short Term Securities | USD | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 3 | Cash and Short Term Securities | EUR | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 3 | Cash and Short Term Securities | Others | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 3 | Equity Securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 3 | US Large Cap Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 3 | US Small Cap Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 3 | International Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 3 | Fixed Income Funds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 3 | Corporate debts securities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 3 | Euro Corporate Bonds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 3 | Investment Funds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 3 | Mutual Funds in Equities | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 3 | Mutual Funds in Bonds | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | 0 | 0 | 0 | 0 | ||
Foreign Plans | Level 3 | Mutual Funds Diversified | Fair Value, Recurring | ||||||
Change in plan assets: | ||||||
Fair value of plan assets at beginning of year | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | ||||
Plan Assets: | ||||||
Total investments | $ 0 | $ 0 | $ 0 | $ 0 |
RETIREMENT AND DEFERRED COMPE_4
RETIREMENT AND DEFERRED COMPENSATION PLANS - Defined Benefit Plans Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
United States | ||
Changes in the benefit obligations and plan assets | ||
Employer contribution | $ 448,000 | $ 436,000 |
Defined Benefit Plan Minimum Funding Requirement By Employer | 0 | |
Expected contribution in next fiscal year | 500,000 | |
United States | Supplemental Employee Retirement Plan | ||
Changes in the benefit obligations and plan assets | ||
Liability, defined benefit plan | 16,800,000 | 12,600,000 |
Foreign Plans | ||
Changes in the benefit obligations and plan assets | ||
Employer contribution | 7,527,000 | $ 6,542,000 |
Expected contribution in next fiscal year | $ 500,000 |
RETIREMENT AND DEFERRED COMPE_5
RETIREMENT AND DEFERRED COMPENSATION PLANS - Defined Contribution and Other Plans Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
United States | ||||
Defined contribution plan | ||||
Total contributions by company | $ 4.3 | $ 4.1 | $ 3.7 | |
United States | Maximum | ||||
Defined contribution plan | ||||
Employer matching contribution as a percentage of salary | 3.00% | |||
United States | Maximum | Subsequent Events | ||||
Defined contribution plan | ||||
Employer matching contribution as a percentage of salary | 5.00% | |||
Foreign Plans | ||||
Defined contribution plan | ||||
Total contributions by company | $ 2.4 | $ 2.3 | $ 2.4 |
RETIREMENT AND DEFERRED COMPE_6
RETIREMENT AND DEFERRED COMPENSATION PLANS - Schedule of Estimated Benefit Payments to Defined Benefit Plans (Details) $ in Thousands | Dec. 31, 2020USD ($) |
United States | |
Changes in the benefit obligations and plan assets | |
2021 | $ 12,464 |
2022 | 12,533 |
2023 | 13,297 |
2024 | 14,413 |
2025 | 14,461 |
2026 - 2030 | 78,437 |
Foreign Plans | |
Changes in the benefit obligations and plan assets | |
2021 | 5,514 |
2022 | 2,505 |
2023 | 3,154 |
2024 | 4,591 |
2025 | 7,772 |
2026 - 2030 | $ 37,211 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated other comprehensive income activity | |||
Balance at the beginning of the period | $ 1,571,916 | ||
Other comprehensive (loss) income before reclassifications | 44,538 | $ (26,254) | $ (41,008) |
Amounts reclassified from accumulated other comprehensive income (loss) | 15,701 | (5,190) | (9,536) |
Net current-period other comprehensive (loss) income | 60,239 | (31,444) | (50,544) |
Reclassification of stranded tax effects | (6,658) | ||
Balance at the end of the period | 1,850,389 | 1,571,916 | |
Foreign Currency | |||
Accumulated other comprehensive income activity | |||
Balance at the beginning of the period | (257,124) | (248,401) | (185,503) |
Other comprehensive (loss) income before reclassifications | 79,099 | (8,723) | (62,898) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Net current-period other comprehensive (loss) income | 79,099 | (8,723) | (62,898) |
Reclassification of stranded tax effects | 0 | ||
Balance at the end of the period | (178,025) | (257,124) | (248,401) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | |||
Accumulated other comprehensive income activity | |||
Balance at the beginning of the period | (83,147) | (60,463) | (64,595) |
Other comprehensive (loss) income before reclassifications | (25,389) | (25,557) | 5,266 |
Amounts reclassified from accumulated other comprehensive income (loss) | 6,214 | 2,873 | 5,524 |
Net current-period other comprehensive (loss) income | (19,175) | (22,684) | 10,790 |
Reclassification of stranded tax effects | (6,658) | ||
Balance at the end of the period | (102,322) | (83,147) | (60,463) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||
Accumulated other comprehensive income activity | |||
Balance at the beginning of the period | (1,677) | (1,640) | (3,204) |
Other comprehensive (loss) income before reclassifications | (9,172) | 8,026 | 16,624 |
Amounts reclassified from accumulated other comprehensive income (loss) | 9,487 | (8,063) | (15,060) |
Net current-period other comprehensive (loss) income | 315 | (37) | 1,564 |
Reclassification of stranded tax effects | 0 | ||
Balance at the end of the period | (1,362) | (1,677) | (1,640) |
Accumulated Other Comprehensive (Loss)Income | |||
Accumulated other comprehensive income activity | |||
Balance at the beginning of the period | (341,948) | (310,504) | (253,302) |
Reclassification of stranded tax effects | (6,658) | ||
Balance at the end of the period | $ (281,709) | $ (341,948) | $ (310,504) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Reclassifications From Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Interest expense | $ (33,244) | $ (35,489) | $ (32,626) | ||||||||
Miscellaneous, net | (4,614) | 1,556 | 5,550 | ||||||||
Income before Income Taxes | 301,155 | 342,069 | 266,020 | ||||||||
Tax benefit | (87,065) | (99,842) | (71,254) | ||||||||
Net income attributable to AptarGroup, Inc. | $ 53,232 | $ 63,716 | $ 41,839 | $ 55,253 | $ 48,533 | $ 56,750 | $ 73,915 | $ 63,004 | 214,040 | 242,202 | 194,745 |
Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Net income attributable to AptarGroup, Inc. | 15,701 | (5,190) | (9,536) | ||||||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Income before Income Taxes | 8,203 | 3,850 | 7,309 | ||||||||
Tax benefit | (1,989) | (977) | (1,785) | ||||||||
Net income attributable to AptarGroup, Inc. | 6,214 | 2,873 | 5,524 | ||||||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Total Net periodic benefit cost | 7,805 | 3,401 | 6,589 | ||||||||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Total Net periodic benefit cost | (398) | (449) | (720) | ||||||||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Income before Income Taxes | 9,487 | (8,063) | (18,149) | ||||||||
Tax benefit | 0 | 0 | 3,089 | ||||||||
Net income attributable to AptarGroup, Inc. | 9,487 | (8,063) | (15,060) | ||||||||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Changes in treasury locks | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Interest expense | 0 | 0 | 26 | ||||||||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Changes in cross currency swap: interest component | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Interest expense | (1,474) | (4,805) | (5,150) | ||||||||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Changes in cross currency swap: foreign exchange component | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Miscellaneous, net | $ 10,961 | $ (3,258) | $ (13,025) |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 20, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Net after-tax loss included in accumulated other comprehensive earnings | $ (315) | $ 37 | $ (1,547) | ||
Derivative assets | 322 | 2,758 | |||
Derivative liabilities | 8,455 | 401 | |||
Derivative Contracts Not Designated as Hedging Instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative assets | 322 | 206 | |||
Derivative liabilities | 146 | 401 | |||
Cross Currency Swap Contract | Prepaid and other | Derivative Contracts Not Designated as Hedging Instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative assets | 0 | 0 | |||
Cross Currency Swap Contract | Accounts payable and accrued liabilities | Derivative Contracts Not Designated as Hedging Instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative liabilities | 0 | 0 | |||
Cross Currency Swap Contract | Derivatives in Cash Flow Hedging Relationships | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Amount hedged | $ 280,000 | ||||
Net after-tax loss included in accumulated other comprehensive earnings | 1,400 | 1,700 | |||
Fair value of derivative liability | 8,300 | ||||
Changes in cross currency swap: interest component | Derivatives in Cash Flow Hedging Relationships | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Amount expected to be recognized in earnings in next twelve months related to cross currency swap contract | 300 | ||||
Foreign Exchange Contracts | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Aggregate amount of forward exchange contracts | 52,500 | ||||
Foreign Exchange Contracts | Prepaid and other | Derivative Contracts Not Designated as Hedging Instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative assets | 322 | 206 | |||
Foreign Exchange Contracts | Accounts payable and accrued liabilities | Derivative Contracts Not Designated as Hedging Instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative liabilities | $ 146 | $ 401 | |||
Notes payable | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Proceeds from debt | $ 280,000 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Fair Value of Derivative Instruments in the Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value of Derivative Instruments | ||
Derivative assets | $ 322 | $ 2,758 |
Derivative liabilities | 8,455 | 401 |
Derivative Contracts Not Designated as Hedging Instruments | ||
Fair Value of Derivative Instruments | ||
Derivative assets | 322 | 206 |
Derivative liabilities | 146 | 401 |
Derivative Contracts Not Designated as Hedging Instruments | Foreign Exchange Contracts | Prepaid and other | ||
Fair Value of Derivative Instruments | ||
Derivative assets | 322 | 206 |
Derivative Contracts Not Designated as Hedging Instruments | Foreign Exchange Contracts | Accounts payable and accrued liabilities | ||
Fair Value of Derivative Instruments | ||
Derivative liabilities | 146 | 401 |
Derivative Contracts Not Designated as Hedging Instruments | Cross Currency Interest Rate Contract | Prepaid and other | ||
Fair Value of Derivative Instruments | ||
Derivative assets | 0 | 0 |
Derivative Contracts Not Designated as Hedging Instruments | Cross Currency Interest Rate Contract | Accounts payable and accrued liabilities | ||
Fair Value of Derivative Instruments | ||
Derivative liabilities | 0 | 0 |
Derivative Contracts Designated as Hedging Instruments | ||
Fair Value of Derivative Instruments | ||
Derivative assets | 0 | 2,552 |
Derivative liabilities | 8,309 | 0 |
Derivative Contracts Designated as Hedging Instruments | Foreign Exchange Contracts | Prepaid and other | ||
Fair Value of Derivative Instruments | ||
Derivative assets | 0 | 0 |
Derivative Contracts Designated as Hedging Instruments | Foreign Exchange Contracts | Accounts payable and accrued liabilities | ||
Fair Value of Derivative Instruments | ||
Derivative liabilities | 0 | 0 |
Derivative Contracts Designated as Hedging Instruments | Cross Currency Interest Rate Contract | Prepaid and other | ||
Fair Value of Derivative Instruments | ||
Derivative assets | 0 | 2,552 |
Derivative Contracts Designated as Hedging Instruments | Cross Currency Interest Rate Contract | Accounts payable and accrued liabilities | ||
Fair Value of Derivative Instruments | ||
Derivative liabilities | $ 8,309 | $ 0 |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Effect of Derivative Instruments on the Consolidated Statements of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative instruments, gain or (loss) | |||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative | $ (9,172) | $ 8,361 | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income on Derivative | (9,487) | 8,063 | |
Interest expense | 33,244 | 35,489 | $ 32,626 |
Miscellaneous, net | (4,614) | 1,556 | $ 5,550 |
Amount of (Loss) Gain Recognized in Income on Derivatives | 337 | (141) | |
Changes in cross currency swap: interest component | |||
Derivative instruments, gain or (loss) | |||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative | 1,789 | 5,103 | |
Changes in cross currency swap: interest component | Derivatives in Cash Flow Hedging Relationships | |||
Derivative instruments, gain or (loss) | |||
Interest expense | 33,244 | ||
Changes in cross currency swap: interest component | Interest expense | |||
Derivative instruments, gain or (loss) | |||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income on Derivative | 1,474 | 4,805 | |
Changes in cross currency swap: foreign exchange component | |||
Derivative instruments, gain or (loss) | |||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative | (10,961) | 3,258 | |
Changes in cross currency swap: foreign exchange component | Derivatives in Cash Flow Hedging Relationships | |||
Derivative instruments, gain or (loss) | |||
Miscellaneous, net | (4,614) | ||
Changes in cross currency swap: foreign exchange component | Miscellaneous, net | |||
Derivative instruments, gain or (loss) | |||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income on Derivative | (10,961) | 3,258 | |
Foreign Exchange Contracts | Miscellaneous, net | |||
Derivative instruments, gain or (loss) | |||
Amount of (Loss) Gain Recognized in Income on Derivatives | $ 337 | $ (141) |
DERIVATIVE INSTRUMENTS AND HE_6
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Derivative Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Assets | ||
Gross amount | $ 322 | $ 2,758 |
Net amounts presented in the statement of financial position | 322 | 2,758 |
Net amount | 322 | 2,758 |
Derivative Liabilities | ||
Gross amount | 8,455 | 401 |
Net amounts presented in the statements of financial position | 8,455 | 401 |
Net amount | $ 8,455 | $ 401 |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 31, 2019 | May 31, 2019 |
Liabilities | ||||
Fair value of long-term obligations | $ 1,100,000 | $ 1,100,000 | ||
Noble Acquisition | ||||
Liabilities | ||||
Contingent consideration obligation | 4,200 | $ 2,900 | ||
Gateway Acquisition | ||||
Liabilities | ||||
Contingent consideration obligation | $ 3,000 | |||
Level 3 | ||||
Liabilities | ||||
Contingent consideration obligation | 31,140 | 5,930 | ||
Level 3 | Fusion Acquisition | ||||
Liabilities | ||||
Contingent consideration obligation | 26,910 | 0 | ||
Level 3 | Noble Acquisition | ||||
Liabilities | ||||
Contingent consideration obligation | 4,230 | 2,930 | ||
Level 3 | Gateway Acquisition | ||||
Liabilities | ||||
Contingent consideration obligation | 0 | 3,000 | ||
Fair Value, Recurring | Level 1 | ||||
Assets | ||||
Foreign exchange contracts | 0 | 0 | ||
Cross currency swap contract | 0 | 0 | ||
Total assets at fair value | 0 | 0 | ||
Liabilities | ||||
Foreign exchange contracts | 0 | 0 | ||
Cross currency swap contract | 0 | |||
Contingent consideration obligation | 0 | 0 | ||
Total liabilities at fair value | 0 | 0 | ||
Fair Value, Recurring | Level 2 | ||||
Assets | ||||
Foreign exchange contracts | 322 | 206 | ||
Cross currency swap contract | 0 | 2,552 | ||
Total assets at fair value | 322 | 2,758 | ||
Liabilities | ||||
Foreign exchange contracts | 146 | 401 | ||
Cross currency swap contract | 8,309 | |||
Contingent consideration obligation | 0 | 0 | ||
Total liabilities at fair value | 8,455 | 401 | ||
Fair Value, Recurring | Level 3 | ||||
Assets | ||||
Foreign exchange contracts | 0 | 0 | ||
Cross currency swap contract | 0 | 0 | ||
Total assets at fair value | 0 | 0 | ||
Liabilities | ||||
Foreign exchange contracts | 0 | 0 | ||
Cross currency swap contract | 0 | |||
Contingent consideration obligation | 31,140 | 5,930 | ||
Total liabilities at fair value | 31,140 | 5,930 | ||
Estimate of Fair Value Measurement | Fair Value, Recurring | ||||
Assets | ||||
Foreign exchange contracts | 322 | 206 | ||
Cross currency swap contract | 0 | 2,552 | ||
Total assets at fair value | 322 | 2,758 | ||
Liabilities | ||||
Foreign exchange contracts | 146 | 401 | ||
Cross currency swap contract | 8,309 | |||
Contingent consideration obligation | 31,140 | 5,930 | ||
Total liabilities at fair value | $ 39,595 | $ 6,331 |
FAIR VALUE - Contingent Conside
FAIR VALUE - Contingent Consideration Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 31, 2019 | May 31, 2019 |
Level 3 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Contingent consideration obligation | $ 31,140 | $ 5,930 | ||
Fusion Acquisition | Level 3 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Contingent consideration obligation | 26,910 | 0 | ||
Noble Acquisition | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Contingent consideration obligation | 4,200 | $ 2,900 | ||
Noble Acquisition | Level 3 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Contingent consideration obligation | 4,230 | 2,930 | ||
Gateway Acquisition | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Contingent consideration obligation | $ 3,000 | |||
Gateway Acquisition | Level 3 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Contingent consideration obligation | $ 0 | $ 3,000 |
FAIR VALUE - Roll Forward (Deta
FAIR VALUE - Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 5,930 | $ 0 |
Acquisition | 22,745 | 5,930 |
Increase (decrease) in fair value recorded in earnings | 5,230 | 0 |
Payments | (2,765) | 0 |
Balance at end of period | $ 31,140 | $ 5,930 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | |
Brazil | ||||||
Commitments and contingencies | ||||||
Environmental remediation expense | $ 1,500,000 | |||||
Payments to settle environmental loss contingency | $ 100,000 | $ 600,000 | ||||
Accrual for environmental loss contingencies | 300,000 | |||||
Brazil | Reduction of gross receipts tax | ||||||
Commitments and contingencies | ||||||
Recovery of part of claim | $ 700,000 | $ 2,700,000 | $ 631,000 | |||
Brazil | Reduction of gross receipts tax | Cost of sales | ||||||
Commitments and contingencies | ||||||
Recovery of part of claim | $ 700,000 | 1,700,000 | ||||
Brazil | Reduction of gross receipts tax | Interest Income | ||||||
Commitments and contingencies | ||||||
Recovery of part of claim | $ 1,000,000 | |||||
Brazil | Minimum | Reduction of gross receipts tax | ||||||
Commitments and contingencies | ||||||
Estimated potential recoveries | 1,500,000 | |||||
Brazil | Maximum | Reduction of gross receipts tax | ||||||
Commitments and contingencies | ||||||
Estimated potential recoveries | 7,500,000 | |||||
Indemnification agreements | ||||||
Commitments and contingencies | ||||||
Liabilities recorded under indemnification agreements | 0 | |||||
Tax Assessment | Brazil | ||||||
Commitments and contingencies | ||||||
Loss contingency liability recorded | $ 0 | |||||
Estimated loss contingency | 6,100,000 | |||||
Tax Assessment, Interest | Brazil | ||||||
Commitments and contingencies | ||||||
Estimated loss contingency | 2,300,000 | |||||
Tax Assessment, Penalites | Brazil | ||||||
Commitments and contingencies | ||||||
Estimated loss contingency | $ 800,000 |
STOCK REPURCHASE PROGRAM (Detai
STOCK REPURCHASE PROGRAM (Details) - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Apr. 18, 2019 | |
Stock repurchase program | |||
Common stock repurchased (retired and held in treasury) (in shares) | 0 | 779 | |
Common stock repurchased (retired and held in treasury) | $ 86,500,000 | ||
Remaining authorized repurchase amount | $ 278,500,000 | ||
Stock Repurchase Program April 18, 2019 | |||
Stock repurchase program | |||
Share repurchases authorized amount | $ 350,000,000 |
CAPITAL STOCK (Details)
CAPITAL STOCK (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Common stock and treasury stock and the share activity | |||
Authorized common stock (in shares) | 199,000,000 | 199,000,000 | |
Balance at the beginning of the year (in shares) | 68,600,000 | ||
Balance at the end of the year (in shares) | 69,500,000 | 68,600,000 | |
Cash dividends paid on the common stock | $ 92,658 | $ 90,208 | $ 82,346 |
Common Stock Par Value | |||
Common stock and treasury stock and the share activity | |||
Balance at the beginning of the year (in shares) | 68,608,508 | 67,341,316 | 66,742,490 |
Restricted stock vestings (in shares) | 79,700 | 41,268 | 39,691 |
Common stock repurchased and retired (in shares) | 0 | 0 | (623,412) |
Balance at the end of the year (in shares) | 69,516,805 | 68,608,508 | 67,341,316 |
Common Stock Par Value | Stock Awards Plans | |||
Common stock and treasury stock and the share activity | |||
Stock option exercises (in shares) | 802,046 | 1,079,841 | 1,182,547 |
Common Stock Par Value | Director Stock Option Plans | |||
Common stock and treasury stock and the share activity | |||
Stock option exercises (in shares) | 26,551 | 146,083 | 0 |
Treasury Stock | |||
Common stock and treasury stock and the share activity | |||
Balance at the beginning of the year (in shares) | 4,836,027 | 4,424,884 | 4,881,889 |
Common stock repurchased (in shares) | 0 | 778,848 | 45,000 |
Balance at the end of the year (in shares) | 4,528,051 | 4,836,027 | 4,424,884 |
Treasury Stock | Stock Awards Plans | |||
Common stock and treasury stock and the share activity | |||
Stock option exercises (in shares) | 307,976 | 367,705 | 502,005 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted-Average Grant-Date Fair Value | |||
Proceeds from stock option exercises | $ 68,555 | $ 90,834 | $ 88,156 |
Stock options | |||
STOCK-BASED COMPENSATION | |||
Award vesting period (in years) | 3 years | ||
Weighted-Average Grant-Date Fair Value | |||
Actual tax benefit realized for the tax deduction from option exercises | $ 14,500 | ||
Unrecognized compensation cost expected to be recognized in future periods | $ 200 | ||
Weighted-average period over which compensation cost is expected to be recognized (in years) | 2 months 12 days | ||
Expiration period (in years) | 10 years | ||
Proceeds from stock option exercises | $ 68,600 | ||
Restricted stock units | |||
Weighted-Average Grant-Date Fair Value | |||
Actual tax benefit realized for the tax deduction from option exercises | 5,800 | ||
Unrecognized compensation cost expected to be recognized in future periods | $ 43,300 | ||
Weighted-average period over which compensation cost is expected to be recognized (in years) | 1 year 7 months 6 days | ||
Restricted stock units (time-based) | |||
Restricted stock unit activity | |||
Balance at the beginning of the period (in shares) | 480,729 | ||
Granted (in shares) | 241,812 | ||
Vested (in shares) | (138,606) | ||
Forfeited (in shares) | (7,737) | ||
Balance at the end of the period (in shares) | 576,198 | 480,729 | |
Weighted-Average Grant-Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 95.45 | ||
Granted (in dollars per share) | 87.13 | ||
Vested (in dollars per share) | 86.84 | ||
Forfeited (in dollars per share) | 97.80 | ||
Nonvested at the end of the period (in dollars per share) | $ 92.47 | $ 95.45 | |
Restricted stock units (performance-based) | |||
Restricted stock unit activity | |||
Balance at the beginning of the period (in shares) | 181,680 | ||
Granted (in shares) | 417,313 | ||
Vested (in shares) | 0 | ||
Forfeited (in shares) | (8,929) | ||
Balance at the end of the period (in shares) | 590,064 | 181,680 | |
Weighted-Average Grant-Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 117.26 | ||
Granted (in dollars per share) | 93.08 | ||
Vested (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 111.60 | ||
Nonvested at the end of the period (in dollars per share) | $ 100.27 | $ 117.26 | |
Stock Awards Plans | Stock options | |||
Assumptions used to estimate fair value of restricted stock units granted | |||
Expected stock price volatility | 14.20% | ||
Risk-free interest rate | 2.80% | ||
Dividend yield | 1.50% | ||
Weighted-Average Grant-Date Fair Value | |||
Weighted-average fair value of stock options granted (in dollars per share) | $ 14.82 | ||
Assumptions used to estimate fair value of stock options granted | |||
Dividend yield | 1.50% | ||
Expected stock price volatility | 14.20% | ||
Risk-free interest rate | 2.80% | ||
Expected life of option | 6 years 7 months 6 days | ||
Stock options activity | |||
Outstanding at the beginning of the period (in shares) | 5,044,180 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (1,035,649) | ||
Forfeited or expired (in shares) | (10,484) | ||
Outstanding at the end of the period (in shares) | 3,998,047 | 5,044,180 | |
Exercisable at the end of the period (in shares) | 3,845,344 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 68.32 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 60.81 | ||
Forfeited or expired (in dollars per share) | 80.13 | ||
Outstanding at the end of the period (in dollars per share) | 70.28 | $ 68.32 | |
Exercisable at the end of the period (in dollars per share) | $ 69.45 | ||
Weighted-Average Remaining Contractual Term (Years): | |||
Outstanding at the end of the period | 4 years 9 months 18 days | ||
Exercisable at the end of the period | 4 years 7 months 6 days | ||
Aggregate Intrinsic Value: | |||
Outstanding at the end of the period | $ 256,760 | ||
Exercisable at the end of the period | 249,299 | ||
Intrinsic value of options exercised | $ 59,179 | $ 87,251 | $ 72,951 |
Stock Awards Plans | Restricted stock units (time-based) | |||
STOCK-BASED COMPENSATION | |||
Award vesting period (in years) | 3 years | ||
Stock Awards Plans | Restricted stock units (performance-based) | |||
STOCK-BASED COMPENSATION | |||
Award vesting period (in years) | 3 years | ||
Assumptions used to estimate fair value of restricted stock units granted | |||
Fair value per stock award (in dollars per share) | $ 94.98 | $ 134.97 | $ 128.70 |
Grant date stock price (in dollars per share) | $ 83.93 | $ 104.51 | $ 89.42 |
Expected stock price volatility | 23.80% | 16.50% | 12.30% |
Expected average volatility of peer companies | 48.50% | 31.90% | 27.50% |
Correlation assumption | 63.50% | 37.40% | 20.20% |
Risk-free interest rate | 0.31% | 2.19% | 2.42% |
Dividend yield | 1.72% | 1.30% | 1.43% |
Assumptions used to estimate fair value of stock options granted | |||
Dividend yield | 1.72% | 1.30% | 1.43% |
Expected stock price volatility | 23.80% | 16.50% | 12.30% |
Risk-free interest rate | 0.31% | 2.19% | 2.42% |
Director Stock Option Plans | Stock options | |||
Stock options activity | |||
Outstanding at the beginning of the period (in shares) | 135,251 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (36,051) | ||
Forfeited or expired (in shares) | 0 | ||
Outstanding at the end of the period (in shares) | 99,200 | 135,251 | |
Exercisable at the end of the period (in shares) | 99,200 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 58.45 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 52 | ||
Forfeited or expired (in dollars per share) | 0 | ||
Outstanding at the end of the period (in dollars per share) | 60.80 | $ 58.45 | |
Exercisable at the end of the period (in dollars per share) | $ 60.80 | ||
Weighted-Average Remaining Contractual Term (Years): | |||
Outstanding at the end of the period | 2 years 7 months 6 days | ||
Exercisable at the end of the period | 2 years 7 months 6 days | ||
Aggregate Intrinsic Value: | |||
Outstanding at the end of the period | $ 7,311 | ||
Exercisable at the end of the period | 7,311 | ||
Intrinsic value of options exercised | $ 2,318 | $ 1,172 | $ 2,286 |
Director Stock Option Plans | Restricted stock units | |||
STOCK-BASED COMPENSATION | |||
Award vesting period (in years) | 1 year | ||
Director Stock Option Plans | Restricted stock units (time-based) | |||
Restricted stock unit activity | |||
Granted (in shares) | 12,379 | ||
Vested (in shares) | (11,490) |
STOCK-BASED COMPENSATION - Comp
STOCK-BASED COMPENSATION - Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted stock units | |||
STOCK-BASED COMPENSATION | |||
Compensation expense | $ 32,085 | $ 18,197 | $ 8,703 |
Fair value of units vested | 12,038 | 4,566 | 2,980 |
Intrinsic value of units vested | 14,446 | 5,360 | 3,708 |
Stock options | |||
STOCK-BASED COMPENSATION | |||
Compensation expense | 2,063 | 5,696 | 10,858 |
Compensation expense, net of tax | 1,573 | 4,507 | 8,391 |
Grant date fair value of options vested | 7,601 | 17,492 | 16,518 |
Stock options | Selling, research & development and administrative expenses | |||
STOCK-BASED COMPENSATION | |||
Compensation expense | 1,693 | 4,768 | 8,677 |
Stock options | Cost of sales | |||
STOCK-BASED COMPENSATION | |||
Compensation expense | $ 370 | $ 928 | $ 2,181 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income (Numerator) | |||||||||||
Income available to common stockholders, basic (in dollars) | $ 53,232 | $ 63,716 | $ 41,839 | $ 55,253 | $ 48,533 | $ 56,750 | $ 73,915 | $ 63,004 | $ 214,040 | $ 242,202 | $ 194,745 |
Income available to common stockholders, diluted (in dollars) | $ 214,040 | $ 242,202 | $ 194,745 | ||||||||
Shares (Denominator) | |||||||||||
Basic (in shares) | 64,833 | 64,562 | 64,262 | 64,009 | 63,835 | 64,010 | 63,471 | 62,964 | 64,418 | 63,574 | 62,437 |
Total average equivalent shares (in shares) | 67,265 | 66,922 | 66,384 | 66,111 | 66,192 | 66,702 | 66,232 | 65,349 | 66,657 | 66,150 | 64,958 |
Per Share Amount | |||||||||||
Net income per share, basic (in dollars per share) | $ 0.82 | $ 0.99 | $ 0.65 | $ 0.86 | $ 0.76 | $ 0.89 | $ 1.16 | $ 1 | $ 3.32 | $ 3.81 | $ 3.12 |
Net income per share, diluted (in dollars per share) | $ 0.79 | $ 0.95 | $ 0.63 | $ 0.84 | $ 0.73 | $ 0.85 | $ 1.12 | $ 0.96 | $ 3.21 | $ 3.66 | $ 3 |
Stock options | |||||||||||
Shares (Denominator) | |||||||||||
Effect of dilutive stock based compensation (in shares) | 1,800 | 2,344 | 2,440 | ||||||||
Restricted stock units | |||||||||||
Shares (Denominator) | |||||||||||
Effect of dilutive stock based compensation (in shares) | 439 | 232 | 81 |
SEGMENT INFORMATION (Summary of
SEGMENT INFORMATION (Summary of Reportable Segments) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Financial information regarding the Company's reportable segments | |||||||||||
Number of reportable segments | segment | 3 | ||||||||||
Net sales | $ 749,329 | $ 759,153 | $ 699,305 | $ 721,553 | $ 671,333 | $ 701,278 | $ 742,661 | $ 744,460 | $ 2,929,340 | $ 2,859,732 | $ 2,764,761 |
Acquisition-related costs | (6,087) | (3,927) | (23,770) | ||||||||
Restructuring initiatives | (26,492) | (20,472) | (63,829) | ||||||||
Depreciation and amortization | (220,300) | (194,552) | (171,747) | ||||||||
Interest expense | (33,244) | (35,489) | (32,626) | ||||||||
Interest income | 958 | 4,174 | 7,056 | ||||||||
Income before Income Taxes | 301,155 | 342,069 | 266,020 | ||||||||
Capital expenditures | 245,954 | 242,276 | 211,252 | ||||||||
Total Assets | 3,990,053 | 3,562,119 | 3,990,053 | 3,562,119 | 3,377,735 | ||||||
Pharma | |||||||||||
Financial information regarding the Company's reportable segments | |||||||||||
Net sales | 1,225,779 | 1,091,051 | 954,652 | ||||||||
Adjusted EBITDA | 428,469 | 387,483 | 343,706 | ||||||||
Restructuring initiatives | (220) | (632) | (3,589) | ||||||||
Depreciation and amortization | (75,874) | (65,590) | (51,495) | ||||||||
Capital expenditures | 117,835 | 89,702 | 54,433 | ||||||||
Total Assets | 1,549,781 | 1,422,815 | 1,549,781 | 1,422,815 | 1,324,696 | ||||||
Beauty + Home | |||||||||||
Financial information regarding the Company's reportable segments | |||||||||||
Net sales | 1,298,151 | 1,352,714 | 1,426,382 | ||||||||
Adjusted EBITDA | 129,299 | 181,150 | 185,926 | ||||||||
Restructuring initiatives | (24,464) | (17,682) | (52,244) | ||||||||
Depreciation and amortization | (95,880) | (82,778) | (83,546) | ||||||||
Capital expenditures | 93,980 | 96,040 | 101,371 | ||||||||
Total Assets | 1,610,058 | 1,378,292 | 1,610,058 | 1,378,292 | 1,373,816 | ||||||
Corporate & Other | |||||||||||
Financial information regarding the Company's reportable segments | |||||||||||
Adjusted EBITDA | (43,443) | (44,406) | (36,285) | ||||||||
Restructuring initiatives | 95 | (1,767) | (3,811) | ||||||||
Depreciation and amortization | (10,778) | (10,456) | (9,239) | ||||||||
Capital expenditures | 15,690 | 13,933 | 25,739 | ||||||||
Transfer of Corporate Technology Expenditures | (11,507) | (2,529) | (11,527) | ||||||||
Total Assets | 280,944 | 226,485 | 280,944 | 226,485 | 177,523 | ||||||
Food + Beverage | |||||||||||
Financial information regarding the Company's reportable segments | |||||||||||
Net sales | 405,410 | 415,967 | 383,727 | ||||||||
Adjusted EBITDA | 71,995 | 68,108 | 57,589 | ||||||||
Restructuring initiatives | (1,903) | (391) | (4,185) | ||||||||
Depreciation and amortization | (37,768) | (35,728) | (27,467) | ||||||||
Capital expenditures | 29,956 | 45,130 | 41,236 | ||||||||
Total Assets | $ 549,270 | $ 534,527 | 549,270 | 534,527 | 501,700 | ||||||
Operating segment | |||||||||||
Financial information regarding the Company's reportable segments | |||||||||||
Net sales | 2,962,530 | 2,894,507 | 2,787,989 | ||||||||
Operating segment | Pharma | |||||||||||
Financial information regarding the Company's reportable segments | |||||||||||
Net sales | 1,234,107 | 1,100,463 | 955,069 | ||||||||
Operating segment | Beauty + Home | |||||||||||
Financial information regarding the Company's reportable segments | |||||||||||
Net sales | 1,320,988 | 1,376,027 | 1,446,231 | ||||||||
Operating segment | Food + Beverage | |||||||||||
Financial information regarding the Company's reportable segments | |||||||||||
Net sales | 407,435 | 418,017 | 386,689 | ||||||||
Intersegment | |||||||||||
Financial information regarding the Company's reportable segments | |||||||||||
Net sales | (33,190) | (34,775) | (23,228) | ||||||||
Intersegment | Pharma | |||||||||||
Financial information regarding the Company's reportable segments | |||||||||||
Net sales | (8,328) | (9,412) | (417) | ||||||||
Intersegment | Beauty + Home | |||||||||||
Financial information regarding the Company's reportable segments | |||||||||||
Net sales | (22,837) | (23,313) | (19,849) | ||||||||
Intersegment | Food + Beverage | |||||||||||
Financial information regarding the Company's reportable segments | |||||||||||
Net sales | $ (2,025) | $ (2,050) | $ (2,962) |
SEGMENT INFORMATION (Summary _2
SEGMENT INFORMATION (Summary of Net Sales and Long-Lived Assets By Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Net sales and long-lived asset information by geographic area | ||||||||||||
Net sales | $ 749,329 | $ 759,153 | $ 699,305 | $ 721,553 | $ 671,333 | $ 701,278 | $ 742,661 | $ 744,460 | $ 2,929,340 | $ 2,859,732 | $ 2,764,761 | |
Property, plant and equipment | 1,198,748 | 1,087,678 | $ 1,198,748 | $ 1,087,678 | $ 991,613 | $ 997,489 | ||||||
Customer Concentration Risk | Net sales | ||||||||||||
Net sales and long-lived asset information by geographic area | ||||||||||||
Concentration risk | 6.00% | 6.00% | 6.00% | |||||||||
United States | ||||||||||||
Net sales and long-lived asset information by geographic area | ||||||||||||
Net sales | $ 965,986 | $ 836,768 | $ 726,336 | |||||||||
Property, plant and equipment | 298,616 | 300,820 | 298,616 | 300,820 | 265,004 | |||||||
Europe | ||||||||||||
Net sales and long-lived asset information by geographic area | ||||||||||||
Net sales | 1,604,056 | 1,638,469 | 1,627,478 | |||||||||
Property, plant and equipment | 734,172 | 619,268 | 734,172 | 619,268 | 577,144 | |||||||
France | ||||||||||||
Net sales and long-lived asset information by geographic area | ||||||||||||
Net sales | 854,639 | 895,110 | 862,364 | |||||||||
Property, plant and equipment | 426,353 | 338,288 | 426,353 | 338,288 | 308,250 | |||||||
Germany | ||||||||||||
Net sales and long-lived asset information by geographic area | ||||||||||||
Net sales | 448,405 | 452,409 | 474,369 | |||||||||
Property, plant and equipment | 194,553 | 163,782 | 194,553 | 163,782 | 154,505 | |||||||
Italy | ||||||||||||
Net sales and long-lived asset information by geographic area | ||||||||||||
Net sales | 148,636 | 141,867 | 144,044 | |||||||||
Property, plant and equipment | 57,333 | 53,562 | 57,333 | 53,562 | 54,978 | |||||||
Other Europe | ||||||||||||
Net sales and long-lived asset information by geographic area | ||||||||||||
Net sales | 152,376 | 149,083 | 146,701 | |||||||||
Property, plant and equipment | 55,933 | 63,636 | 55,933 | 63,636 | 59,411 | |||||||
Other Foreign Countries | ||||||||||||
Net sales and long-lived asset information by geographic area | ||||||||||||
Net sales | 359,298 | 384,495 | 410,947 | |||||||||
Property, plant and equipment | $ 165,960 | $ 167,590 | $ 165,960 | $ 167,590 | $ 149,465 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) $ in Thousands | Oct. 16, 2020USD ($) | Apr. 01, 2020USD ($) | Oct. 31, 2019USD ($) | Aug. 02, 2019USD ($) | Jun. 05, 2019USD ($) | May 31, 2019USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Acquisitions | |||||||||||||
Acquisition of business, net of cash received | $ 164,181 | $ 106,328 | $ 527,916 | ||||||||||
Restricted cash included in prepaid and other | $ 4,833 | 4,833 | 5,003 | 5,000 | |||||||||
Payment of contingent consideration obligation | 2,765 | 0 | 0 | ||||||||||
Acquisition-related costs | 6,087 | 3,927 | 23,770 | ||||||||||
Assets | |||||||||||||
Goodwill | 898,521 | 898,521 | 763,461 | $ 712,095 | |||||||||
Bapco | |||||||||||||
Acquisitions | |||||||||||||
Payments for asset acquisitions, net of cash acquired | $ 3,800 | ||||||||||||
Asset acquisition, cash acquired | $ 2,900 | ||||||||||||
Asset acquisition, percentage of shares acquired | 0.80 | ||||||||||||
Cohero Health, Inc. | |||||||||||||
Acquisitions | |||||||||||||
Asset acquisition, consideration transferred | $ 2,400 | ||||||||||||
Bapco | |||||||||||||
Acquisitions | |||||||||||||
Ownership investment percentage | 20.00% | ||||||||||||
Noble Acquisition | |||||||||||||
Acquisitions | |||||||||||||
Percentage of interest acquired | 100.00% | ||||||||||||
Acquisition of business, net of cash received | $ 62,300 | $ 463 | |||||||||||
Cash and equivalents | 1,600 | ||||||||||||
Contingent consideration obligation | 2,900 | 4,200 | 4,200 | ||||||||||
Restricted cash included in prepaid and other | 5,000 | ||||||||||||
Release of working capital escrow | $ 1,000 | ||||||||||||
Assets | |||||||||||||
Cash and equivalents | $ 1,600 | ||||||||||||
Nanopharm | |||||||||||||
Acquisitions | |||||||||||||
Acquisition of business, net of cash received | $ 38,100 | ||||||||||||
Cash and equivalents | 1,800 | ||||||||||||
Assets | |||||||||||||
Cash and equivalents | $ 1,800 | ||||||||||||
Gateway Acquisition | |||||||||||||
Acquisitions | |||||||||||||
Contingent consideration obligation | $ 3,000 | ||||||||||||
Cost of acquired entity | $ 7,000 | ||||||||||||
Payment of contingent consideration obligation | $ 1,300 | $ 1,500 | |||||||||||
Gain realized on payment of contingent consideration | 235 | ||||||||||||
Fusion Packaging | |||||||||||||
Acquisitions | |||||||||||||
Percentage of interest acquired | 100.00% | ||||||||||||
Acquisition of business, net of cash received | $ 163,800 | ||||||||||||
Cash and equivalents | 1,000 | ||||||||||||
Contingent consideration obligation | 19,100 | 26,900 | 26,900 | ||||||||||
Fair value true-up for contingent consideration liability | 3,600 | ||||||||||||
Restricted cash included in prepaid and other | 5,700 | ||||||||||||
Release of working capital escrow | 2,000 | ||||||||||||
Proceeds from release of working capital escrow returned to buyer | $ 294 | ||||||||||||
Sales of acquiree during the reporting period | 53,400 | ||||||||||||
Pretax income of acquiree during the reporting period | (1,500) | ||||||||||||
Fair value adjustment amortization for inventory and consideration transferred | 6,900 | ||||||||||||
Assets | |||||||||||||
Cash and equivalents | $ 1,000 | ||||||||||||
2020 Acquisitions | |||||||||||||
Acquisitions | |||||||||||||
Cash and equivalents | 1,010 | 1,010 | |||||||||||
Acquisition-related costs | 4,600 | ||||||||||||
Deductible goodwill for tax purposes | 80,600 | 80,600 | |||||||||||
Assets | |||||||||||||
Cash and equivalents | 1,010 | 1,010 | |||||||||||
Accounts receivable | 4,380 | 4,380 | |||||||||||
Inventories | 386 | 386 | |||||||||||
Prepaid and other | 1,090 | 1,090 | |||||||||||
Property, plant and equipment | 2,885 | 2,885 | |||||||||||
Goodwill | 103,130 | 103,130 | |||||||||||
Intangible assets | 79,900 | 79,900 | |||||||||||
Operating lease right-of-use assets | 4,744 | 4,744 | |||||||||||
Other miscellaneous assets | 65 | 65 | |||||||||||
Liabilities | |||||||||||||
Accounts payable, accrued and other liabilities | 5,641 | 5,641 | |||||||||||
Deferred income taxes | 0 | 0 | |||||||||||
Operating lease liabilities | 4,207 | 4,207 | |||||||||||
Deferred and other non-current liabilities | 322 | 322 | |||||||||||
Net assets acquired | 187,420 | 187,420 | |||||||||||
2020 Acquisitions | Beauty + Home | |||||||||||||
Assets | |||||||||||||
Goodwill | $ 103,100 | $ 103,100 | |||||||||||
2019 Acquisitions | |||||||||||||
Acquisitions | |||||||||||||
Cash and equivalents | 3,427 | ||||||||||||
Acquisition-related costs | 3,400 | ||||||||||||
Deductible goodwill for tax purposes | 32,800 | ||||||||||||
Assets | |||||||||||||
Cash and equivalents | 3,427 | ||||||||||||
Accounts receivable | 3,504 | ||||||||||||
Inventories | 0 | ||||||||||||
Prepaid and other | 2,478 | ||||||||||||
Property, plant and equipment | 4,267 | ||||||||||||
Goodwill | 59,143 | ||||||||||||
Intangible assets | 52,980 | ||||||||||||
Operating lease right-of-use assets | 0 | ||||||||||||
Other miscellaneous assets | 430 | ||||||||||||
Liabilities | |||||||||||||
Accounts payable, accrued and other liabilities | 5,388 | ||||||||||||
Deferred income taxes | 2,592 | ||||||||||||
Operating lease liabilities | 0 | ||||||||||||
Deferred and other non-current liabilities | 1,598 | ||||||||||||
Net assets acquired | 116,651 | ||||||||||||
2019 Acquisitions | Pharma | |||||||||||||
Assets | |||||||||||||
Goodwill | $ 59,100 |
ACQUISITIONS (Acquired Intangib
ACQUISITIONS (Acquired Intangibles) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
2020 Acquisitions | ||
Acquired finite-lived intangible assets | ||
Estimated fair value of asset | $ 79,900 | |
2020 Acquisitions | Acquired technology | ||
Acquired finite-lived intangible assets | ||
Weighted average useful life (in years) | 4 years | |
Estimated fair value of asset | $ 4,600 | |
2020 Acquisitions | Customer relationships | ||
Acquired finite-lived intangible assets | ||
Weighted average useful life (in years) | 13 years | |
Estimated fair value of asset | $ 62,300 | |
2020 Acquisitions | Trademarks and trade names | ||
Acquired finite-lived intangible assets | ||
Weighted average useful life (in years) | 4 years | |
Estimated fair value of asset | $ 10,300 | |
2020 Acquisitions | License agreements and other | ||
Acquired finite-lived intangible assets | ||
Weighted average useful life (in years) | 3 months | |
Estimated fair value of asset | $ 2,700 | |
2019 Acquisitions | ||
Acquired finite-lived intangible assets | ||
Estimated fair value of asset | $ 52,980 | |
2019 Acquisitions | Acquired technology | ||
Acquired finite-lived intangible assets | ||
Weighted average useful life (in years) | 8 years | |
Estimated fair value of asset | $ 9,160 | |
2019 Acquisitions | Customer relationships | ||
Acquired finite-lived intangible assets | ||
Weighted average useful life (in years) | 11 years | |
Estimated fair value of asset | $ 39,379 | |
2019 Acquisitions | Trademarks and trade names | ||
Acquired finite-lived intangible assets | ||
Weighted average useful life (in years) | 4 years | |
Estimated fair value of asset | $ 2,457 | |
2019 Acquisitions | License agreements and other | ||
Acquired finite-lived intangible assets | ||
Weighted average useful life (in years) | 1 year | |
Estimated fair value of asset | $ 1,984 |
ACQUISITIONS (Pro Forma) (Detai
ACQUISITIONS (Pro Forma) (Details) - Fusion Packaging - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Unaudited pro forma financial information | ||
Net Sales | $ 2,937,303 | $ 2,937,218 |
Net Income Attributable to AptarGroup Inc. | $ 215,619 | $ 247,263 |
Net Income per common share — basic (in dollars per share) | $ 3.35 | $ 3.89 |
Net Income per common share — diluted (in dollars per share) | $ 3.23 | $ 3.74 |
INVESTMENT IN EQUITY SECURITI_3
INVESTMENT IN EQUITY SECURITIES - Balances of Equity Method Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments and Other Investments | $ 50,087 | $ 8,396 |
BTY | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 33,020 | 119 |
Sonmol | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 5,598 | 0 |
Kali Care | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 535 | 3,881 |
Desotec GmbH | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 964 | 858 |
PureCycle | ||
Schedule of Equity Method Investments [Line Items] | ||
Other Investments | 5,397 | 1,000 |
Loop | ||
Schedule of Equity Method Investments [Line Items] | ||
Other Investments | 2,894 | 2,538 |
Others | ||
Schedule of Equity Method Investments [Line Items] | ||
Other Investments | $ 1,679 | $ 0 |
INVESTMENT IN EQUITY SECURITI_4
INVESTMENT IN EQUITY SECURITIES - Narrative (Details) € in Thousands | Apr. 01, 2020USD ($) | Jan. 01, 2020USD ($) | Nov. 30, 2020USD ($) | Aug. 31, 2019USD ($)investment | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2009EUR (€) | Dec. 31, 2020USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Investment in unconsolidated affiliate | $ 39,628,000 | $ 3,530,000 | $ 10,000,000 | ||||||||
Income (Loss) from equity method investment | (1,443,000) | 135,000 | (229,000) | ||||||||
Increase (decrease) in value of preferred equity stock investment | 64,000 | 0 | 6,500,000 | ||||||||
Preferred equity stocks | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Increase (decrease) in value of preferred equity stock investment | $ 6,500,000 | ||||||||||
Sonmol | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Investment in unconsolidated affiliate | $ 5,000,000 | ||||||||||
Ownership percentage of equity method investment | 30.00% | ||||||||||
Equity method investments value | $ 5,598,000 | 5,598,000 | 0 | $ 5,598,000 | |||||||
BTY | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Investment in unconsolidated affiliate | $ 32,000,000 | ||||||||||
Ownership percentage of equity method investment | 49.00% | ||||||||||
Equity method investments value | 33,020,000 | 33,020,000 | 119,000 | 33,020,000 | |||||||
Initial lock-up period (in years) | 5 years | ||||||||||
Second lock-up period (in years) | 3 years | ||||||||||
BTY | Minimum | Call Option | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage of equity method investment | 26.00% | ||||||||||
BTY | Maximum | Call Option | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage of equity method investment | 31.00% | ||||||||||
Kali Care | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Investment in unconsolidated affiliate | $ 5,000,000 | ||||||||||
Ownership percentage of equity method investment | 20.00% | ||||||||||
Equity method investments value | 535,000 | 535,000 | 3,881,000 | 535,000 | |||||||
Income (Loss) from equity method investment | (1,500,000) | ||||||||||
Investment impairment | 3,000,000 | ||||||||||
Investment impairment, net | 2,300,000 | ||||||||||
Desotec GmbH | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Investment in unconsolidated affiliate | € | € 574 | ||||||||||
Ownership percentage of equity method investment | 23.00% | ||||||||||
Equity method investments value | $ 964,000 | 964,000 | $ 858,000 | $ 964,000 | |||||||
Loop and Purecycle | Preferred equity stocks | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Investment in unconsolidated affiliate | $ 3,500,000 | ||||||||||
Number of preferred equity investments | investment | 2 | ||||||||||
Increase (decrease) in value of preferred equity stock investment | 1,400,000 | ||||||||||
PureCycle | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Investment impairment | 0 | ||||||||||
PureCycle | Preferred equity stocks | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Increase (decrease) in value of preferred equity stock investment | $ 3,100,000 | ||||||||||
Equity received in exchange for services | $ 333,000 |
RESTRUCTURING INITIATIVE (Detai
RESTRUCTURING INITIATIVE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring initiatives | |||
Capital expenditures | $ 245,954 | $ 242,276 | $ 211,252 |
Restructuring reserve | |||
Restructuring initiatives | 26,492 | 20,472 | 63,829 |
Business Transformation | |||
Restructuring initiatives | |||
Restructuring charges including asset impairment | 26,500 | ||
Asset impairment charges | 2,500 | ||
Expected implementation costs | 125,000 | ||
Cumulative expense incurred | 113,000 | ||
Capital expenditures | 50,000 | ||
Restructuring reserve | |||
Restructuring reserve, balance at the beginning of the period | 10,699 | ||
Restructuring initiatives | 24,016 | 20,500 | $ 63,800 |
Cash paid | (24,233) | ||
Interest and FX impact | 7 | ||
Restructuring reserve, balance at the end of the period | 10,489 | 10,699 | |
Business Transformation | Employee severance | |||
Restructuring reserve | |||
Restructuring reserve, balance at the beginning of the period | 7,090 | ||
Restructuring initiatives | 16,162 | ||
Cash paid | (14,731) | ||
Interest and FX impact | (565) | ||
Restructuring reserve, balance at the end of the period | 7,956 | 7,090 | |
Business Transformation | Professional fees and other costs | |||
Restructuring reserve | |||
Restructuring reserve, balance at the beginning of the period | 3,609 | ||
Restructuring initiatives | 7,854 | ||
Cash paid | (9,502) | ||
Interest and FX impact | 572 | ||
Restructuring reserve, balance at the end of the period | $ 2,533 | $ 3,609 |
QUARTERLY DATA (UNAUDITED) (Det
QUARTERLY DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net Sales | $ 749,329 | $ 759,153 | $ 699,305 | $ 721,553 | $ 671,333 | $ 701,278 | $ 742,661 | $ 744,460 | $ 2,929,340 | $ 2,859,732 | $ 2,764,761 |
Gross profit | 231,019 | 233,988 | 213,494 | 227,505 | 193,588 | 215,222 | 231,739 | 233,841 | 906,006 | 874,390 | |
Net income | 53,245 | 63,735 | 41,860 | 55,250 | 48,538 | 56,769 | 73,921 | 62,999 | 214,090 | 242,227 | 194,766 |
Net income attributable to AptarGroup, Inc. | $ 53,232 | $ 63,716 | $ 41,839 | $ 55,253 | $ 48,533 | $ 56,750 | $ 73,915 | $ 63,004 | $ 214,040 | $ 242,202 | $ 194,745 |
Net Income Attributable to AptarGroup, Inc. per Common Share: | |||||||||||
Basic (in dollars per share) | $ 0.82 | $ 0.99 | $ 0.65 | $ 0.86 | $ 0.76 | $ 0.89 | $ 1.16 | $ 1 | $ 3.32 | $ 3.81 | $ 3.12 |
Diluted (in dollars per share) | $ 0.79 | $ 0.95 | $ 0.63 | $ 0.84 | $ 0.73 | $ 0.85 | $ 1.12 | $ 0.96 | $ 3.21 | $ 3.66 | $ 3 |
Average number of shares outstanding: | |||||||||||
Basic (in shares) | 64,833 | 64,562 | 64,262 | 64,009 | 63,835 | 64,010 | 63,471 | 62,964 | 64,418 | 63,574 | 62,437 |
Diluted (in shares) | 67,265 | 66,922 | 66,384 | 66,111 | 66,192 | 66,702 | 66,232 | 65,349 | 66,657 | 66,150 | 64,958 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CECL | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning Of Period | $ 3,626 | $ 3,541 | $ 3,161 |
Charged to Costs and Expenses | 865 | 782 | 923 |
Charged to Other Accounts | 1,647 | 0 | 0 |
Deductions from Reserve | (220) | (697) | (543) |
Balance at End of Period | 5,918 | 3,626 | 3,541 |
Deferred tax valuation allowance | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning Of Period | 23,320 | 11,189 | 5,414 |
Charged to Costs and Expenses | 3,085 | 12,058 | 4,230 |
Charged to Other Accounts | 700 | 1,508 | 2,604 |
Deductions from Reserve | (4,000) | (1,435) | (1,059) |
Balance at End of Period | $ 23,105 | $ 23,320 | $ 11,189 |