COVER
COVER - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 22, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-11846 | |
Entity Registrant Name | AptarGroup, Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-3853103 | |
Entity Address, Address Line One | 265 EXCHANGE DRIVE | |
Entity Address, Address Line Two | SUITE 301 | |
Entity Address, City or Town | CRYSTAL LAKE | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60014 | |
City Area Code | 815 | |
Local Phone Number | 477-0424 | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | ATR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 66,388,414 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000896622 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Net Sales | $ 910,063 | $ 895,906 | $ 1,825,511 | $ 1,755,973 |
Operating Expenses: | ||||
Cost of sales (exclusive of depreciation and amortization shown below) | 567,440 | 573,711 | 1,150,196 | 1,131,133 |
Selling, research & development and administrative | 149,330 | 141,428 | 302,110 | 289,351 |
Depreciation and amortization | 64,968 | 62,267 | 129,317 | 121,526 |
Restructuring initiatives | 2,315 | 1,943 | 5,795 | 13,467 |
Total Operating Expenses | 784,053 | 779,349 | 1,587,418 | 1,555,477 |
Operating Income | 126,010 | 116,557 | 238,093 | 200,496 |
Other (Expense) Income: | ||||
Interest expense | (10,061) | (9,688) | (20,236) | (19,916) |
Interest income | 3,102 | 648 | 6,000 | 1,320 |
Net investment (loss) gain | (140) | 2,891 | 452 | 3,079 |
Equity in results of affiliates | 130 | 643 | (91) | 512 |
Miscellaneous expense, net | (795) | (173) | (1,654) | (1,344) |
Total Other Expense | (7,764) | (5,679) | (15,529) | (16,349) |
Income before Income Taxes | 118,246 | 110,878 | 222,564 | 184,147 |
Provision for Income Taxes | 27,788 | 27,831 | 49,173 | 46,514 |
Net Income | 90,458 | 83,047 | 173,391 | 137,633 |
Net (Gain) Loss Attributable to Noncontrolling Interests | (4) | 25 | 167 | 203 |
Net Income Attributable to AptarGroup, Inc. | $ 90,454 | $ 83,072 | $ 173,558 | $ 137,836 |
Net Income Attributable to AptarGroup, Inc. per Common Share: | ||||
Basic (in dollars per share) | $ 1.36 | $ 1.27 | $ 2.62 | $ 2.11 |
Diluted (in dollars per share) | $ 1.34 | $ 1.24 | $ 2.57 | $ 2.07 |
Average Number of Shares Outstanding: | ||||
Basic (in shares) | 66,312 | 65,568 | 66,188 | 65,470 |
Diluted (in shares) | 67,575 | 66,855 | 67,509 | 66,748 |
Dividends per Common Share (in dollars per share) | $ 0.41 | $ 0.38 | $ 0.82 | $ 0.76 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 90,458 | $ 83,047 | $ 173,391 | $ 137,633 |
Other Comprehensive (Loss) Income: | ||||
Foreign currency translation adjustments | (24,009) | (1,749) | (66,111) | 23,875 |
Changes in derivative gains (losses), net of tax | 2,601 | (3,764) | 5,509 | (5,131) |
Defined benefit pension plan, net of tax | ||||
Actuarial gain, net of tax | 22 | 7 | 102 | 68 |
Amortization of prior service cost included in net income, net of tax | 20 | 33 | 40 | 65 |
Amortization of net loss included in net income, net of tax | 181 | 162 | 364 | 322 |
Total defined benefit pension plan, net of tax | 223 | 202 | 506 | 455 |
Total other comprehensive (loss) income | (21,185) | (5,311) | (60,096) | 19,199 |
Comprehensive Income | 69,273 | 77,736 | 113,295 | 156,832 |
Comprehensive Loss Attributable to Noncontrolling Interests | 308 | 896 | 708 | 231 |
Comprehensive Income Attributable to AptarGroup, Inc. | $ 69,581 | $ 78,632 | $ 114,003 | $ 157,063 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and equivalents | $ 221,492 | $ 223,643 |
Short-term investments | 2,399 | 0 |
Accounts and notes receivable, less current expected credit loss (“CECL”) of $13,711 in 2024 and $16,217 in 2023 | 737,764 | 677,822 |
Inventories | 484,608 | 513,053 |
Prepaid and other | 147,387 | 134,761 |
Total Current Assets | 1,593,650 | 1,549,279 |
Land | 29,194 | 30,090 |
Buildings and improvements | 752,024 | 748,897 |
Machinery and equipment | 3,158,933 | 3,183,097 |
Property, Plant and Equipment, Gross | 3,940,151 | 3,962,084 |
Less: Accumulated depreciation | (2,473,875) | (2,484,021) |
Property, Plant and Equipment, Net | 1,466,276 | 1,478,063 |
Investments in equity securities | 48,527 | 49,203 |
Goodwill | 950,075 | 963,418 |
Intangible assets, net | 258,330 | 283,211 |
Operating lease right-of-use assets | 58,829 | 59,074 |
Miscellaneous | 77,570 | 69,642 |
Total Other Assets | 1,393,331 | 1,424,548 |
Total Assets | 4,453,257 | 4,451,890 |
Current Liabilities: | ||
Notes payable, revolving credit facility and overdrafts | 136,320 | 81,794 |
Current maturities of long-term obligations, net of unamortized debt issuance costs | 269,399 | 376,426 |
Accounts payable, accrued and other liabilities | 762,390 | 793,089 |
Total Current Liabilities | 1,168,109 | 1,251,309 |
Long-Term Obligations, net of unamortized debt issuance costs | 681,532 | 681,188 |
Deferred income taxes | 14,752 | 19,016 |
Retirement and deferred compensation plans | 66,323 | 62,795 |
Operating lease liabilities | 43,336 | 45,267 |
Deferred and other non-current liabilities | 68,990 | 71,017 |
Commitments and contingencies | 0 | 0 |
Total Deferred Liabilities and Other | 193,401 | 198,095 |
AptarGroup, Inc. stockholders’ equity | ||
Common stock, $.01 par value, 199 million shares authorized, 72.1 million and 71.7 million shares issued as of June 30, 2024 and December 31, 2023, respectively | 721 | 717 |
Capital in excess of par value | 1,082,560 | 1,044,429 |
Retained earnings | 2,229,377 | 2,109,816 |
Accumulated other comprehensive loss | (368,524) | (308,734) |
Less: Treasury stock at cost, 5.8 million and 5.8 million shares as of June 30, 2024 and December 31, 2023 | (547,685) | (539,404) |
Total AptarGroup, Inc. Stockholders’ Equity | 2,396,449 | 2,306,824 |
Noncontrolling interests in subsidiaries | 13,766 | 14,474 |
Total Stockholders’ Equity | 2,410,215 | 2,321,298 |
Total Liabilities and Stockholders’ Equity | $ 4,453,257 | $ 4,451,890 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands, shares in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts and notes receivable, allowance for credit loss | $ 13,711 | $ 16,217 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 199 | 199 |
Common stock, shares issued (in shares) | 72.1 | 71.7 |
Treasury stock (in shares) | 5.8 | 5.8 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Common Stock Par Value | Treasury Stock | Capital in Excess of Par Value | Non- Controlling Interest |
Beginning balance at Dec. 31, 2022 | $ 2,068,204 | $ 1,929,240 | $ (341,366) | $ 709 | $ (503,266) | $ 968,618 | $ 14,269 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 137,633 | 137,836 | (203) | ||||
Foreign currency translation adjustments | 23,875 | (226) | 24,129 | (28) | |||
Changes in unrecognized pension gains and related amortization, net of tax | 455 | 455 | |||||
Changes in derivative gains (losses), net of tax | (5,131) | (5,131) | |||||
Stock awards and option exercises | 42,214 | 4 | 5,821 | 36,389 | |||
Cash dividends declared on common stock | (49,785) | (49,785) | |||||
Treasury stock purchased | (29,039) | (29,039) | |||||
Ending balance at Jun. 30, 2023 | 2,188,426 | 2,017,065 | (321,913) | 713 | (526,484) | 1,005,007 | 14,038 |
Beginning balance at Mar. 31, 2023 | 2,127,757 | 1,958,930 | (317,473) | 711 | (520,329) | 990,984 | 14,934 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 83,047 | 83,072 | (25) | ||||
Foreign currency translation adjustments | (1,749) | (878) | (871) | ||||
Changes in unrecognized pension gains and related amortization, net of tax | 202 | 202 | |||||
Changes in derivative gains (losses), net of tax | (3,764) | (3,764) | |||||
Stock awards and option exercises | 17,180 | 2 | 3,155 | 14,023 | |||
Cash dividends declared on common stock | (24,937) | (24,937) | |||||
Treasury stock purchased | (9,310) | (9,310) | |||||
Ending balance at Jun. 30, 2023 | 2,188,426 | 2,017,065 | (321,913) | 713 | (526,484) | 1,005,007 | 14,038 |
Beginning balance at Dec. 31, 2023 | 2,321,298 | 2,109,816 | (308,734) | 717 | (539,404) | 1,044,429 | 14,474 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 173,391 | 173,558 | (167) | ||||
Foreign currency translation adjustments | (66,111) | 235 | (65,805) | (541) | |||
Changes in unrecognized pension gains and related amortization, net of tax | 506 | 506 | |||||
Changes in derivative gains (losses), net of tax | 5,509 | 5,509 | |||||
Stock awards and option exercises | 46,988 | 4 | 8,853 | 38,131 | |||
Cash dividends declared on common stock | (54,232) | (54,232) | |||||
Treasury stock purchased | (17,134) | (17,134) | |||||
Ending balance at Jun. 30, 2024 | 2,410,215 | 2,229,377 | (368,524) | 721 | (547,685) | 1,082,560 | 13,766 |
Beginning balance at Mar. 31, 2024 | 2,362,933 | 2,165,858 | (347,418) | 720 | (545,630) | 1,075,329 | 14,074 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 90,458 | 90,454 | 4 | ||||
Foreign currency translation adjustments | (24,009) | 233 | (23,930) | (312) | |||
Changes in unrecognized pension gains and related amortization, net of tax | 223 | 223 | |||||
Changes in derivative gains (losses), net of tax | 2,601 | 2,601 | |||||
Stock awards and option exercises | 10,235 | 1 | 3,003 | 7,231 | |||
Cash dividends declared on common stock | (27,168) | (27,168) | |||||
Treasury stock purchased | (5,058) | (5,058) | |||||
Ending balance at Jun. 30, 2024 | $ 2,410,215 | $ 2,229,377 | $ (368,524) | $ 721 | $ (547,685) | $ 1,082,560 | $ 13,766 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 173,391 | $ 137,633 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation | 107,643 | 99,432 |
Amortization | 21,674 | 22,094 |
Stock-based compensation | 27,553 | 25,433 |
(Release) provision for CECL | (1,997) | 2,877 |
Loss (gain) on disposition of fixed assets | 126 | (2,945) |
Net gain on remeasurement of equity securities | (452) | (3,079) |
Deferred income taxes | (8,139) | (6,321) |
Defined benefit plan expense | 7,407 | 7,098 |
Equity in results of affiliates | 91 | (512) |
Changes in balance sheet items, excluding effects from foreign currency adjustments: | ||
Accounts and other receivables | (78,360) | (28,287) |
Inventories | 13,713 | (18,569) |
Prepaid and other current assets | (13,797) | (32,535) |
Accounts payable, accrued and other liabilities | 2,909 | 687 |
Income taxes payable | (1,248) | (12,869) |
Retirement and deferred compensation plan liabilities | (10,167) | (2,812) |
Other changes, net | (4,435) | (5,124) |
Net Cash Provided by Operations | 235,912 | 182,201 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (143,866) | (155,012) |
Proceeds from sale of property, plant and equipment | 1,020 | 3,542 |
Purchase of short-term investments | (2,242) | (21) |
Acquisition of businesses, net of cash acquired and release of escrow | 0 | (10,910) |
Acquisition of intangible assets, net | 0 | (1,300) |
Notes receivable, net | 102 | 92 |
Net Cash Used by Investing Activities | (144,986) | (163,609) |
Cash Flows from Financing Activities: | ||
Proceeds from notes payable and overdrafts | 14,178 | 19,063 |
Repayments of notes payable and overdrafts | (8,841) | (22,631) |
Proceeds and (repayments) of short term revolving credit facility, net | 49,338 | 61,053 |
Proceeds from long-term obligations | 3,062 | 261 |
Repayments of long-term obligations | (103,177) | (16,338) |
Payment of contingent consideration obligation | 0 | (22,750) |
Dividends paid | (54,232) | (49,785) |
Proceeds from stock option exercises | 27,797 | 24,342 |
Purchase of treasury stock | (17,134) | (29,039) |
Net Cash Used by Financing Activities | (89,009) | (35,824) |
Effect of Exchange Rate Changes on Cash | (4,068) | (3,517) |
Net Decrease in Cash and Equivalents and Restricted Cash | (2,151) | (20,749) |
Cash and Equivalents and Restricted Cash at Beginning of Period | 223,643 | 142,732 |
Cash and Equivalents and Restricted Cash at End of Period | 221,492 | 121,983 |
Cash and equivalents | 221,492 | 120,983 |
Restricted cash included in prepaid and other | 0 | 1,000 |
Total Cash and Equivalents and Restricted Cash shown in the Statement of Cash Flows | $ 221,492 | $ 121,983 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of AptarGroup, Inc. and our subsidiaries. The terms “AptarGroup,” “Aptar,” “Company,” “we,” “us” or “our” as used herein refer to AptarGroup, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated. Certain previously reported amounts have been reclassified to conform to the current period presentation. In the opinion of management, the unaudited Condensed Consolidated Financial Statements (the “Condensed Consolidated Financial Statements”) include all normal recurring adjustments necessary for a fair statement of consolidated financial position, results of operations, comprehensive income, changes in equity and cash flows for the interim periods presented. The accompanying Condensed Consolidated Financial Statements have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures made are adequate to make the information presented not misleading. Also, certain financial position data included herein was derived from the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 but does not include all disclosures required by U.S. GAAP. Accordingly, these Condensed Consolidated Financial Statements and related notes should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. The results of operations of any interim period are not necessarily indicative of the results that may be expected for the year. ADOPTION OF RECENT ACCOUNTING STANDARDS Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB’s Accounting Standards Codification. In March 2020, the FASB issued ASU 2020-04, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments to this update apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 was further amended in January 2021 by ASU 2021-01 which clarified the applicability of certain provisions. Both standards are effective upon issuance and could be adopted any time prior to December 31, 2022. The guidance in ASU 2020-04 and ASU 2021-01 is optional and may be elected over time as reference rate reform activities occur. We adopted this guidance in the second quarter of 2023 and have transitioned away from the London Interbank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”) in our revolving credit facility. In November 2023, the FASB issued ASU 2023-07, Improvement to Reportable Segment Disclosures, which requires enhanced disclosures about significant segment expenses on an annual and interim basis. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and are to be applied on a retrospective basis. We are evaluating the impact of the standard on our segment reporting disclosures. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which is intended to improve income tax disclosure requirements by requiring (i) consistent categories and greater disaggregation of information in the rate reconciliation and (ii) the disaggregation of income taxes paid by jurisdiction. The guidance makes several other changes to income tax disclosure requirements. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and are required to be applied prospectively with the option of retrospective application. We are evaluating the impact of the standard on our income tax disclosures. Other accounting standards that have been issued by the FASB or other standards-setting bodies did not have a material impact on our Condensed Consolidated Financial Statements. INCOME TAXES We compute taxes on income in accordance with the tax rules and regulations of the many taxing authorities where income is earned. The income tax rates imposed by these taxing authorities may vary substantially. Taxable income may differ from pre-tax income for U.S. GAAP financial accounting purposes. To the extent that these differences create temporary differences between the tax basis of an asset or liability and our reported amount in the U.S. GAAP financial statements, an appropriate provision for deferred income taxes is made. We maintain our assertion that the cash and distributable reserves at our non-U.S. affiliates are indefinitely reinvested with the following exceptions: all earnings in Germany and the pre-2020 earnings in Italy, Switzerland and Colombia. As of June 30, 2024, under currently enacted laws, we do not have a balance of foreign earnings that will be subject to U.S. taxation upon repatriation. We will provide for the necessary withholding and local income taxes when management decides that an affiliate should make a distribution. These decisions are made taking into consideration the financial requirements of the non-U.S. affiliates and our global cash management goals. See Note 5 - Income Taxes for more information. We provide a liability for the amount of unrecognized tax benefits from uncertain tax positions. This liability is provided whenever we determine that a tax benefit will not meet a more-likely-than-not threshold for recognition. We are subject to the examination of our returns and other tax matters by the U.S. Internal Revenue Service and other tax authorities and government bodies. We believe that we have adequately provided a tax reserve for any adjustments that may result from tax examinations or uncertain tax positions. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are resolved in a manner inconsistent with our expectations, we could be required to adjust our provision for income taxes in the period such resolution occurs. The resolution of each of these audits is not expected to be material to our Condensed Consolidated Financial Statements. ASSETS HELD FOR SALE Assets to be disposed of by sale are reported at the lower of their carrying amount or fair value less costs to sell, and are not depreciated while they are held for sale. During the second quarter of 2023, we recorded $0.7 million as assets held for sale within prepaid and other on our Condensed Consolidated Balance Sheets related to three buildings located in France. During the third quarter of 2023, two of the three buildings were sold and we recognized a $0.8 million gain on sale. As of June 30, 2024, one building is still held for sale and expected to be sold by year end 2024. SUPPLY CHAIN FINANCE PROGRAM We facilitate a supply chain finance program (“SCF”) across Europe and the U.S. that is administered by a third-party platform. Eligible suppliers can elect to receive early payment of invoices, less an interest deduction, and negotiate their receivable sales arrangements through the third-party platform on behalf of the respective SCF bank. We are not a party to those agreements, and the terms of our payment obligations are not impacted by a supplier's participation in the SCF. Accordingly, we have concluded that this program continues to be a trade payable program and is not indicative of a borrowing arrangement. Under these agreements, the average payment terms range from 60 to 120 days and are based on industry standards and best practices within each of our regions. All outstanding amounts related to suppliers participating in the SCF are recorded within accounts payable, accrued and other liabilities in our Condensed Consolidated Balance Sheets, and associated payments are included in operating activities within our Condensed Consolidated Statements of Cash Flows. As of June 30, 2024, the amounts due to suppliers participating in the SCF and included in accounts payable, accrued and other liabilities were approximately $36.2 million. Collection and payment periods tend to be longer for our operations located outside the United States due to local business practices. We have also seen an increasing trend in pressure from certain customers to lengthen their payment terms. As the majority of our products are made to order, we have not needed to keep significant amounts of finished goods inventory to meet customer requirements. However, some of our contracts specify an amount of finished goods safety stock we are required to maintain. To the extent our financial position allows and there is a clear financial benefit, we from time-to-time benefit from early payment discounts with some suppliers. We have lengthened the payment terms with our suppliers to be in line with customer trends. While we have offered a third party alternative for our suppliers to receive payments sooner, we generally do not utilize these offerings from our customers as the economic conditions currently are not beneficial for us. |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE In prior years, our geographic revenue disclosure was based on shipped from location. Beginning in 2024, we have started to report our geographic sales based on shipped to locations to give the reader a better understanding of the geographies we serve. Revenue by segment and geography based on shipped to locations for the three and six months ended June 30, 2024 and 2023 were as follows: For the Three Months Ended June 30, 2024 Segment Europe Domestic Latin Asia Total Aptar Pharma $ 207,493 $ 138,734 $ 13,301 $ 55,005 $ 414,533 Aptar Beauty 190,740 66,618 42,207 21,922 321,487 Aptar Closures 51,894 84,468 22,283 15,398 174,043 Total $ 450,127 $ 289,820 $ 77,791 $ 92,325 $ 910,063 For the Three Months Ended June 30, 2023 Segment Europe Domestic Latin Asia Total Aptar Pharma $ 208,062 $ 113,613 $ 15,669 $ 53,356 $ 390,700 Aptar Beauty 211,774 56,940 39,501 21,372 329,587 Aptar Closures 58,810 81,400 20,879 14,530 175,619 Total $ 478,646 $ 251,953 $ 76,049 $ 89,258 $ 895,906 For the Six Months Ended June 30, 2024 Segment Europe Domestic Latin Asia Total Aptar Pharma $ 419,668 $ 264,544 $ 25,923 $ 111,691 $ 821,826 Aptar Beauty 396,930 129,895 80,394 41,588 648,807 Aptar Closures 107,921 173,284 43,556 30,117 354,878 Total $ 924,519 $ 567,723 $ 149,873 $ 183,396 $ 1,825,511 For the Six Months Ended June 30, 2023 Segment Europe Domestic Latin Asia Total Aptar Pharma $ 400,182 $ 228,925 $ 23,866 $ 93,773 $ 746,746 Aptar Beauty 421,126 115,928 76,066 42,856 655,976 Aptar Closures 116,137 166,168 41,245 29,701 353,251 Total $ 937,445 $ 511,021 $ 141,177 $ 166,330 $ 1,755,973 We perform our obligations under a contract with a customer by transferring goods and/or services in exchange for consideration from the customer. The timing of performance will sometimes differ from the timing of the invoicing for the associated consideration from the customer, thus resulting in the recognition of a contract asset or a contract liability. We recognize a contract asset when we transfer control of goods or services to a customer prior to invoicing for the related performance obligation. The contract asset is transferred to accounts receivable when the product is shipped and invoiced to the customer. We recognize a contract liability if the customer's payment of consideration precedes the entity's performance. The opening and closing balances of our contract asset and contract liabilities were as follows: Balance as of December 31, 2023 Balance as of June 30, 2024 Increase/ Contract asset (current) $ 18,033 $ 13,783 $ (4,250) Contract liability (current) 60,507 64,435 3,928 Contract liability (long-term) 37,756 42,102 4,346 The differences in the opening and closing balances of our contract asset and contract liabilities are primarily the result of timing differences between our performance and the invoicing. The total amount of revenue recognized during the current year against contract liabilities is $60.3 million, including $35.9 million relating to contract liabilities at the beginning of the year. Current contract assets are included within Prepaid and other, while current contract liabilities and long-term contract liabilities are included within Accounts payable, accrued and other liabilities and Deferred and other non-current liabilities, respectively, within our Condensed Consolidated Balance Sheets. Determining the Transaction Price In most cases, the transaction price for each performance obligation is stated in the contract. In determining the variable amounts of consideration within the transaction price (such as volume-based customer rebates), we include an estimate of the expected amount of consideration as revenue. We apply the expected value method based on all of the information (historical, current, and forecast) that is reasonably available and identify reasonable estimates based on this information. We apply the method consistently throughout the contract when estimating the effect of an uncertainty on the amount of variable consideration to which we will be entitled. Product Sales We primarily manufacture and sell drug and consumer product dosing, dispensing and protection technologies. The amount of consideration is typically fixed for customers. At the time of delivery, the customer is invoiced at the agreed-upon price. Revenue from product sales is typically recognized upon manufacture or shipment, when control of the goods transfers to the customer. To determine when the control transfers, we typically assess, among other things, the shipping terms of the contract, shipping being one of the indicators of transfer of control. For a majority of product sales, control of the goods transfers to the customer at the time of shipment of the goods. Once the goods are shipped, we are precluded from redirecting the shipment to another customer. Therefore, our performance obligation is satisfied at the time of shipment. For sales in which control transfers upon delivery, shipping and/or handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are accounted for as fulfillment costs and revenue is recorded upon final delivery to the customer location. We have elected to account for shipping and handling costs that occur after the customer has obtained control of a good as fulfillment costs rather than as a promised service. We do not have any material significant payment terms as payment is typically received shortly after the point of sale. There also exist instances where we manufacture highly customized products that have no alternative use to us and for which we have an enforceable right to payment for performance completed to date. For these products, we transfer control and recognize revenue over time by measuring progress towards completion using the output method based on the number of products produced. As we normally make our products to a customer’s order, the time between production and shipment of our products is typically within a few weeks. We believe this measurement provides a faithful depiction of the transfer of goods as the costs incurred reflect the value of the products produced. As a part of our customary business practice, we offer a standard warranty that the products will materially comply with the technical specifications and will be free from material defects. Because such warranties are not sold separately, do not provide for any service beyond a guarantee of a product’s initial specifications, and are not required by law, there is no revenue deferral for these types of warranties. Tooling Sales We also build or contract for molds and other tools (collectively defined as “tooling”) necessary to produce our products. As with product sales, we recognize revenue when control of the tool transfers to the customer. If the tooling is highly customized with no alternative use to us and we have an enforceable right to payment for performance completed to date, we transfer control and recognize revenue over time by measuring progress towards completion using the input method based on costs incurred relative to total estimated costs to completion. Otherwise, revenue for the tooling is recognized at the point in time when the customer approves the tool. We do not have any significant payment terms as payment is typically either received during the mold-build process or shortly after completion. In certain instances, we offer extended warranties on our tools above and beyond the normal standard warranties. We normally receive payment at the inception of the contract and recognize revenue over the term of the contract. We do not have any material extended warranties as of June 30, 2024 or December 31, 2023. Service Sales We also provide services to our customers. As with product sales, we recognize revenue based on completion of each performance obligation of the service contract. Milestone deliverables and upfront payments are tied to specific performance obligations and recognized upon satisfaction of the individual performance obligation. Royalty Revenue We determine the amount and timing of royalty revenue based on our contractual agreements with customers. We recognize royalty revenue when earned under the terms of the agreements and when we consider realization of payment to be probable. Contract Costs We do not incur significant costs to obtain or fulfill revenue contracts. Credit Risk We are exposed to credit losses primarily through our product sales, tooling sales and services to our customers. We assess each customer’s ability to pay for the products we sell by conducting a credit review. The credit review considers our expected billing exposure and timing for payment and the customer’s established credit rating, or our assessment of the customer’s creditworthiness based on our analysis of their financial statements when a credit rating is not available. We also consider contract terms and conditions, country and political risks, and business strategy in our evaluation. A credit limit is established for each customer based on the outcome of this review. We monitor our ongoing credit exposure through active review of customer balances against contract terms and due dates. Our activities include timely account reconciliation, dispute resolution and payment confirmation. We may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories, by component net of reserves, consisted of: June 30, December 31, Raw materials $ 131,954 $ 145,798 Work in process 176,527 176,191 Finished goods 176,127 191,064 Total $ 484,608 $ 513,053 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill for the six months ended June 30, 2024 by reporting segment were as follows: Aptar Aptar Aptar Closures Total Balance as of December 31, 2023 $ 508,447 $ 287,097 $ 167,874 $ 963,418 Foreign currency exchange effects (10,089) (2,585) (669) (13,343) Balance as of June 30, 2024 $ 498,358 $ 284,512 $ 167,205 $ 950,075 The table below shows a summary of intangible assets as of June 30, 2024 and December 31, 2023. June 30, 2024 December 31, 2023 Weighted Average Amortization Period (Years) Gross Accumulated Net Gross Accumulated Net Amortized intangible assets: Patents 10.0 $ 7,139 $ (1,968) $ 5,171 $ 7,362 $ (1,754) $ 5,608 Acquired technology 11.2 140,643 (75,255) 65,388 142,837 (70,520) 72,317 Customer relationships 13.6 305,349 (135,198) 170,151 308,889 (124,648) 184,241 Trademarks and trade names 8.0 43,078 (35,188) 7,890 43,932 (33,368) 10,564 License agreements and other 32.7 16,846 (7,116) 9,730 17,213 (6,732) 10,481 Total intangible assets 13.5 $ 513,055 $ (254,725) $ 258,330 $ 520,233 $ (237,022) $ 283,211 Aggregate amortization expense for the intangible assets above for the quarters ended June 30, 2024 and 2023 was $10,351 and $11,131, respectively. Aggregate amortization expense for the intangible assets above for the six months ended June 30, 2024 and 2023 was $21,674 and $22,094, respectively. As of June 30, 2024, future estimated amortization expense for the years ending December 31 is as follows: 2024 $ 20,276 (remaining estimated amortization for 2024) 2025 39,880 2026 37,563 2027 30,410 2028 21,174 Thereafter 109,027 Future amortization expense may fluctuate depending on changes in foreign currency rates. The estimates for amortization expense noted above are based upon foreign exchange rates as of June 30, 2024. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The tax provision for interim periods is determined using the estimated annual effective consolidated tax rate, based on the current estimate of full-year earnings and related estimated full-year taxes, adjusted for the impact of discrete quarterly items. The Organization for Economic Co-operation and Development released Model Global Anti-Base Erosion rules under Pillar Two. Certain countries in which we operate have enacted laws implementing aspects of Pillar Two beginning in 2024. These enacted laws relate to the Pillar Two Income Inclusion Rule and Qualified Domestic Minimum Top-Up Tax with an effective date in 2024. We have analyzed the provisions in the applicable jurisdictions and provided for the appropriate tax amounts. We do not expect a material impact from the implementation of these rules for 2024 but we will continue to monitor future legislations for additional guidance. The effective tax rate for the three months ended June 30, 2024 and 2023, respectively, was 23.5% and 25.1%. The effective tax rate for the three months ended June 30, 2024 reflects a favorable mix of earnings. The effective tax rate for the six months ended June 30, 2024 and 2023, respectively, was 22.1% and 25.3%. The effective tax rate for the six months ended June 30, 2024 reflects a favorable mix of earnings, increased tax benefits from share-based compensation and tax incentives in certain non-U.S. jurisdictions from intellectual property development activities. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Notes Payable, Revolving Credit Facility and Overdrafts At June 30, 2024 and December 31, 2023, our notes payable, revolving credit facility and overdrafts consisted of the following: June 30, December 31, Revolving credit facility 6.44% $ 130,000 $ 80,662 Overdrafts 3.08% to 6.00% 6,320 1,132 $ 136,320 $ 81,794 A of June 30, 2024, Aptar had a revolving credit facility (the “revolving credit facility”) with a syndicate of banks which matured in June 2026. The revolving credit facility was subject to a maximum of two one-year extensions in certain circumstances and provided for unsecured financing of up to $600 million available in the U.S. and to our wholly-owned UK subsidiary. The revolving credit facility could be drawn in various currencies including USD, EUR, GBP, and CHF to the equivalent of $600 million, which may be increased by up to $300 million subject to the satisfaction of certain conditions. As of June 30, 2024, $130 million was utilized under the revolving credit facility in the U.S. and no balance was utilized by our wholly-owned UK subsidiary. As of December 31, 2023, $36.5 million and €40.0 million ($44.2 million) was utilized under the revolving credit facility in the U.S. and no balance was utilized by our wholly-owned UK subsidiary. On July 2, 2024, we entered into a new amended and restated multi-currency revolving credit facility (the “amended revolving credit facility”) with a syndicate of banks to replace the current revolving credit facility. The amended revolving credit facility matures in July 2029, subject to a maximum of two one-year extensions in certain circumstances, and provides for unsecured financing of up to $600 million available in the U.S. and to our wholly-owned UK subsidiary. The amended revolving credit facility can be drawn in various currencies including USD, EUR, GBP, and CHF to the equivalent of $600 million, which may be increased by up to $300 million subject to the satisfaction of certain conditions. On July 2, 2024, we entered into a term loan with a syndicate of banks (the “Term Loan”). The Term Loan matures in July 2027 and enables drawings on the loan until September 30, 2024 and provides for unsecured financing of up to $330 million available in the U.S. Funds are expected to be used to refinance near-term maturities and for general corporate purposes. There are no compensating balance requirements associated with our amended revolving credit facility. Each borrowing under the amended revolving credit facility will bear interest at rates based on SOFR (in the case of USD), EURIBOR (in the case of EUR), SONIA (in the case of GBP), SARON (in the case of CHF), prime rates or other similar rates, in each case plus an applicable margin. The amended revolving credit facility also provides mechanics relating to a transition away from designated benchmark rates for other available currencies and the replacement of any such applicable benchmark by a replacement alternative benchmark rate or mechanism for loans made in the applicable currency. A facility fee on the total amount of the amended revolving credit facility is also payable quarterly, regardless of usage. The applicable margins for borrowings under the amended revolving credit facility and the facility fee percentage may change from time to time depending on changes in our consolidated leverage ratio. Aptar has an unsecured money market borrowing arrangement to provide short term financing of up to $30 million that is available in the U.S. No borrowing on this facility is permitted over a quarter end date. As such, no balance was utilized under this arrangement as of June 30, 2024 or December 31, 2023. Long-Term Obligations On February 26, 2024, we repaid in full the $100 million 3.49% Senior Notes that were due in February 2024. At June 30, 2024 and December 31, 2023, our long-term obligations consisted of the following: June 30, 2024 December 31, 2023 Notes payable 0.10% – 2.25%, due in monthly and annual installments through 2030 $ 16,607 $ 14,988 Senior unsecured notes 3.4%, due in 2024 50,000 50,000 Senior unsecured notes 3.5%, due in 2024 — 100,000 Senior unsecured notes 1.2%, due in 2024 214,220 220,810 Senior unsecured notes 3.6%, due in 2025 125,000 125,000 Senior unsecured notes 3.6%, due in 2026 125,000 125,000 Senior unsecured notes 3.6%, due in 2032, net of discount of $0.8 million 399,206 399,154 Finance Lease Liabilities 24,376 26,478 Unamortized debt issuance costs (3,478) (3,816) $ 950,931 $ 1,057,614 Current maturities of long-term obligations (269,399) (376,426) Total long-term obligations $ 681,532 $ 681,188 The €200 million ($214 million) senior unsecured notes were due on July 19, 2024, and have been repaid from a drawdown of our amended revolving credit facility. The aggregate long-term maturities, excluding finance lease liabilities and unamortized debt issuance costs, which are discussed in Note 7, due annually from the current balance sheet date for the next five years and thereafter are: Year One $ 266,123 Year Two 134,218 Year Three 130,330 Year Four 73 Year Five 42 Thereafter 399,247 Covenants Our amended revolving credit facility and corporate long-term obligations require us to satisfy certain financial and other covenants including: Requirement Level at June 30, 2024 Consolidated Leverage Ratio (1) Maximum of 3.50 to 1.00 1.29 to 1.00 Consolidated Interest Coverage Ratio (1) Minimum of 3.00 to 1.00 16.97 to 1.00 ________________________________________ (1) |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
LEASES | LEASES We lease certain warehouse, plant and office facilities, as well as certain equipment, under non-cancelable operating and finance leases expiring at various dates through the year 2042. Most of the operating leases contain renewal options and certain leases include options to purchase the related asset during or at the end of the lease term. Amortization expense related to finance leases is included in depreciation expense, while rent expense related to operating leases is included within cost of sales and selling, research & development and administrative expenses. The components of lease expense for the three and six months ended June 30, 2024 and 2023 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease cost $ 4,854 $ 5,277 $ 9,735 $ 10,691 Finance lease cost: Amortization of right-of-use assets $ 1,591 $ 867 $ 3,261 $ 1,778 Interest on lease liabilities 302 295 598 594 Total finance lease cost $ 1,893 $ 1,162 $ 3,859 $ 2,372 Short-term lease and variable lease costs $ 4,998 $ 5,197 $ 10,196 $ 10,109 Supplemental cash flow information related to leases were as follows: Six Months Ended June 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,754 $ 10,640 Operating cash flows from finance leases 647 600 Financing cash flows from finance leases 1,821 1,649 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 12,059 $ 6,597 Finance leases 311 352 |
LEASES | LEASES We lease certain warehouse, plant and office facilities, as well as certain equipment, under non-cancelable operating and finance leases expiring at various dates through the year 2042. Most of the operating leases contain renewal options and certain leases include options to purchase the related asset during or at the end of the lease term. Amortization expense related to finance leases is included in depreciation expense, while rent expense related to operating leases is included within cost of sales and selling, research & development and administrative expenses. The components of lease expense for the three and six months ended June 30, 2024 and 2023 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease cost $ 4,854 $ 5,277 $ 9,735 $ 10,691 Finance lease cost: Amortization of right-of-use assets $ 1,591 $ 867 $ 3,261 $ 1,778 Interest on lease liabilities 302 295 598 594 Total finance lease cost $ 1,893 $ 1,162 $ 3,859 $ 2,372 Short-term lease and variable lease costs $ 4,998 $ 5,197 $ 10,196 $ 10,109 Supplemental cash flow information related to leases were as follows: Six Months Ended June 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,754 $ 10,640 Operating cash flows from finance leases 647 600 Financing cash flows from finance leases 1,821 1,649 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 12,059 $ 6,597 Finance leases 311 352 |
RETIREMENT AND DEFERRED COMPENS
RETIREMENT AND DEFERRED COMPENSATION PLANS | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
RETIREMENT AND DEFERRED COMPENSATION PLANS | RETIREMENT AND DEFERRED COMPENSATION PLANS We have various noncontributory retirement plans covering certain of our domestic and foreign employees. Benefits under our retirement plans are based on participants’ years of service and annual compensation as defined by each plan. Annual cash contributions to fund pension costs accrued under our domestic plans are generally at least equal to the minimum funding amounts required by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Certain pension commitments under our foreign plans are also funded according to local requirements or at our discretion. Effective January 1, 2021, our domestic noncontributory retirement plans were closed to new employees and employees who were rehired after December 31, 2020. These employees are instead eligible for additional contribution to their defined contribution 401(k) employee savings plan. All domestic employees with hire/rehire dates prior to January 1, 2021 are still eligible for the domestic pension plans and continue to accrue plan benefits after this date. Components of Net Periodic Benefit Cost: Domestic Plans Foreign Plans Three Months Ended June 30, 2024 2023 2024 2023 Service cost $ 2,366 $ 2,410 $ 1,603 $ 1,487 Interest cost 2,252 2,157 867 917 Expected return on plan assets (3,130) (3,095) (558) (589) Amortization of net loss — — 257 229 Amortization of prior service cost — — 26 45 Net periodic benefit cost $ 1,488 $ 1,472 $ 2,195 $ 2,089 Domestic Plans Foreign Plans Six Months Ended June 30, 2024 2023 2024 2023 Service cost $ 4,731 $ 4,819 $ 3,233 $ 2,957 Interest cost 4,484 4,315 1,742 1,820 Expected return on plan assets (6,231) (6,189) (1,122) (1,169) Amortization of net loss — — 516 457 Amortization of prior service cost — — 54 88 Net periodic benefit cost $ 2,984 $ 2,945 $ 4,423 $ 4,153 The components of net periodic benefit cost, other than the service cost component, are included in the line miscellaneous income (expense), net in the Condensed Consolidated Statements of Income. Employer Contributions We currently have no minimum funding requirements for our domestic and foreign plans. There were no contributions to our domestic defined benefit plans during the six months ended June 30, 2024 and we do not expect significant payments during the rest of 2024. We contributed $0.7 million to our foreign defined benefit plans during the six months ended June 30, 2024 and do not expect additional significant contributions during the rest of 2024. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 6 Months Ended |
Jun. 30, 2024 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Changes in Accumulated Other Comprehensive (Loss) Income by Component: Foreign Currency Defined Benefit Pension Plans Derivatives Total Balance - December 31, 2022 $ (328,740) $ (5,951) $ (6,675) $ (341,366) Other comprehensive income (loss) before reclassifications 24,129 68 (5,131) 19,066 Amounts reclassified from accumulated other comprehensive income — 387 — 387 Net current-period other comprehensive income (loss) 24,129 455 (5,131) 19,453 Balance - June 30, 2023 $ (304,611) $ (5,496) $ (11,806) $ (321,913) Balance - December 31, 2023 $ (280,082) $ (11,891) $ (16,761) $ (308,734) Other comprehensive (loss) income before reclassifications (65,805) 102 5,509 (60,194) Amounts reclassified from accumulated other comprehensive income — 404 — 404 Net current-period other comprehensive (loss) income (65,805) 506 5,509 (59,790) Balance - June 30, 2024 $ (345,887) $ (11,385) $ (11,252) $ (368,524) Reclassifications Out of Accumulated Other Comprehensive (Loss) Income: Details about Accumulated Other Amount Reclassified from Accumulated Other Comprehensive Income Affected Line in the Statement Three Months Ended June 30, 2024 2023 Defined Benefit Pension Plans Amortization of net loss $ 257 $ 229 (1) Amortization of prior service cost 26 45 (1) 283 274 Total before tax (82) (79) Tax impact $ 201 $ 195 Net of tax Total reclassifications for the period $ 201 $ 195 Details about Accumulated Other Amount Reclassified from Accumulated Other Comprehensive Income Affected Line in the Statement Six Months Ended June 30, 2024 2023 Defined Benefit Pension Plans Amortization of net loss $ 516 $ 457 (1) Amortization of prior service cost 54 88 (1) 570 545 Total before tax (166) (158) Tax impact $ 404 $ 387 Net of tax Total reclassifications for the period $ 404 $ 387 ______________________________________________ (1) These accumulated other comprehensive income components are included in the computation of total net periodic benefit costs, net of tax. See Note 8 – Retirement and Deferred Compensation Plans for additional details. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We maintain a foreign exchange risk management policy designed to establish a framework to protect the value of our non-functional currency denominated transactions from adverse changes in exchange rates. Sales of our products can be denominated in a currency different from the currency in which the related costs to produce the product are denominated. Changes in exchange rates on such inter-country sales or intercompany loans can impact our results of operations. Our policy is not to engage in speculative foreign currency hedging activities, but to minimize our net foreign currency transaction exposure, defined as firm commitments and transactions recorded and denominated in currencies other than the functional currency. We may use foreign currency forward exchange contracts, options and cross currency swaps to economically hedge these risks. For derivative instruments designated as hedges, we formally document the nature and relationships between the hedging instruments and the hedged items, as well as the risk management objectives, strategies for undertaking the various hedge transactions, and the method of assessing hedge effectiveness at inception. Quarterly thereafter, we formally assess whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the fair value or cash flows of the hedged item. Additionally, in order to designate any derivative instrument as a hedge of an anticipated transaction, the significant characteristics and expected terms of any anticipated transaction must be specifically identified, and it must be probable that the anticipated transaction will occur. All derivative financial instruments used as hedges are recorded at fair value in the Condensed Consolidated Balance Sheets (See Note 11 - Fair Value). Cash Flow Hedge For derivative instruments that are designated and qualify as cash flow hedges, the changes in fair values are recorded in accumulated other comprehensive loss and included in changes in derivative gain/loss. The changes in the fair values of derivatives designated as cash flow hedges are reclassified from accumulated other comprehensive loss to net income when the underlying hedged item is recognized in earnings. Cash flows from the settlement of derivative contracts designated as cash flow hedges offset cash flows from the underlying hedged items and are included in operating activities in the Condensed Consolidated Statements of Cash Flows. Net Investment Hedge A significant number of our operations are located outside of the United States. Because of this, movements in exchange rates may have a significant impact on the translation of the financial condition and results of operations of our foreign subsidiaries. A weakening U.S. dollar has an additive effect on our financial condition and results of operations. Conversely, a strengthening U.S. dollar relative to foreign currencies has a dilutive translation effect. In some cases we maintain debt in these subsidiaries to offset the net asset exposure. In the event we plan on a full or partial liquidation of any of our foreign subsidiaries where our net investment is likely to be monetized, we will consider hedging the currency exposure associated with such a transaction. On July 6, 2022, we entered into a seven year USD/EUR fixed-to-fixed cross currency interest rate swap to effectively hedge the interest rate exposure relating to $203 million of the $400 million 3.60% Senior Notes due March 2032, which were issued by AptarGroup, Inc. on March 7, 2022. This USD/EUR swap agreement exchanged $203 million of fixed-rate 3.60% USD debt to €200 million of fixed-rate 2.5224% euro debt. We pay semi-annual fixed rate interest payments on the euro notional amount of €2.5 million and receive semi-annual fixed rate interest payments on the USD notional amount of $3.7 million. This swap has been designated as a net investment hedge to effectively hedge the foreign exchange risk associated with €200 million of our euro denominated net assets. We elected the spot method for recording the net investment hedge. Gains and losses resulting from the settlement of the excluded components are recorded in interest expense in the Condensed Consolidated Statements of Income. Gains and losses resulting from the fair value adjustments to the cross currency swap agreements are recorded in accumulated other comprehensive (loss) income as the swaps are effective in hedging the designated risk. As of June 30, 2024, the fair value of the cross currency swap was a $14.9 million liability. The swap agreement will mature on September 15, 2029. Other As of June 30, 2024, we have recorded the fair value of foreign currency forward exchange contracts of $0.9 million in prepaid and other and $0.6 million in accounts payable, accrued and other liabilities on the Condensed Consolidated Balance Sheets. All forward exchange contracts outstanding as of June 30, 2024 had an aggregate notional contract amount of $73.0 million. Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 June 30, 2024 December 31, 2023 Balance Sheet Location Derivatives Designated as Hedging Instruments Derivatives not Designated as Hedging Instruments Derivatives Designated as Hedging Instruments Derivatives not Designated as Hedging Instruments Derivative Assets Foreign Exchange Contracts Prepaid and other $ — $ 949 $ — $ 386 $ — $ 949 $ — $ 386 Derivative Liabilities Foreign Exchange Contracts Accounts payable, accrued and other liabilities $ — $ 646 $ — $ 221 Cross Currency Swap Contract (1) Accounts payable, accrued and other liabilities 14,901 — 22,199 — $ 14,901 $ 646 $ 22,199 $ 221 __________________________ (1) This cross currency swap agreement is composed of both an interest component and a foreign exchange component. The Effect of Derivatives Designated as Hedging Instruments on Accounting on Accumulated Other Comprehensive Income (Loss) for the Three Months Ended June 30, 2024 and 2023 Derivatives Designated as Hedging Instruments Amount of Gain (Loss) Location of (Loss) Amount of Gain (Loss) Total Amount of Affected Income Statement Line Item 2024 2023 2024 2023 Cross currency swap agreement: Interest component $ — $ — Interest expense $ — $ — $ (10,061) Foreign exchange component 2,601 3,763 Miscellaneous, net — — (795) $ 2,601 $ 3,763 $ — $ — The Effect of Derivatives Designated as Hedging Instruments on Accumulated Other Comprehensive Income (Loss) for the Six Months Ended June 30, 2024 and 2023 Derivatives Designated as Hedging Instruments Amount of Gain Location of Gain Recognized Amount of Gain Total Amount of Affected Income Statement Line Item 2024 2023 2024 2023 Cross currency swap agreement: Interest component $ — $ — Interest expense $ — $ — $ (20,236) Foreign exchange component 5,509 (5,131) Miscellaneous, net — — (1,654) $ 5,509 $ (5,131) $ — $ — The Effect of Derivatives Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Income for the Three Months Ended June 30, 2024 and 2023 Derivatives Not Designated Location of (Loss) Gain Recognized Amount of (Loss) Gain 2024 2023 Foreign Exchange Contracts Other (Expense) Income: $ 437 $ 59 $ 437 $ 59 The Effect of Derivatives Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Income for the Six Months Ended June 30, 2024 and 2023 Derivatives Not Designated Location of Loss Recognized Amount of Loss 2024 2023 Foreign Exchange Contracts Other (Expense) Income: $ 140 $ (800) $ 140 $ (800) Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Gross Amounts not Offset in the Statement of Financial Position Gross Amount Financial Instruments Cash Collateral Received Net Amount June 30, 2024 Derivative Assets $ 949 — $ 949 — — $ 949 Total Assets $ 949 — $ 949 — — $ 949 Derivative Liabilities $ 15,547 — $ 15,547 — — $ 15,547 Total Liabilities $ 15,547 — $ 15,547 — — $ 15,547 December 31, 2023 Derivative Assets $ 386 — $ 386 — — $ 386 Total Assets $ 386 — $ 386 — — $ 386 Derivative Liabilities $ 22,420 — $ 22,420 — — $ 22,420 Total Liabilities $ 22,420 — $ 22,420 — — $ 22,420 |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Authoritative guidelines require the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: • Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. • Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. • Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. As of June 30, 2024, the fair values of our financial assets and liabilities were categorized as follows: Total Level 1 Level 2 Level 3 Assets Investment in equity securities (1) $ 1,725 $ 1,725 $ — $ — Foreign exchange contracts (2) 949 — 949 — Convertible notes (3) 5,650 — — 5,650 Total assets at fair value $ 8,324 $ 1,725 $ 949 $ 5,650 Liabilities Foreign exchange contracts (2) $ 646 $ — $ 646 $ — Cross currency swap contract (2) 14,901 — 14,901 — Total liabilities at fair value $ 15,547 $ — $ 15,547 $ — As of December 31, 2023, the fair values of our financial assets and liabilities were categorized as follows: Total Level 1 Level 2 Level 3 Assets Investment in equity securities (1) $ 1,106 $ 1,106 $ — $ — Foreign exchange contracts (2) 386 — 386 — Convertible note (3) 5,650 — — 5,650 Total assets at fair value $ 7,142 $ 1,106 $ 386 $ 5,650 Liabilities Foreign exchange contracts (2) $ 221 $ — $ 221 $ — Cross currency swap contract (2) 22,199 — 22,199 — Total liabilities at fair value $ 22,420 $ — $ 22,420 $ — ________________________________________________ (1) Investment in PureCycle Technologies (“PCT” or “PureCycle”). See Note 18 – Investment in Equity Securities for discussion of this investment. (2) Market approach valuation technique based on observable market transactions of spot and forward rates. (3) Investment in convertible notes in Enable Injections, Inc. and Siklus Refill Pte, Ltd. The investments are included within Miscellaneous assets in our Condensed Consolidated Balance Sheets. The carrying amounts of our other current financial instruments such as cash and equivalents, accounts and notes receivable, notes payable and current maturities of long-term obligations approximate fair value due to the short-term maturity of the instrument. We consider our long-term debt obligations a Level 2 liability and utilize the market approach valuation technique based on interest rates that are currently available to us for issuance of debt with similar terms and maturities. The estimated fair value of our long-term obligations was $614.5 million as of June 30, 2024 and $620.7 million as of December 31, 2023. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES In the normal course of business, we are subject to a number of lawsuits and claims both actual and potential in nature. While management believes the resolution of these claims and lawsuits will not have a material adverse effect on our financial position, results of operations or cash flows, claims and legal proceedings are subject to inherent uncertainties, and unfavorable outcomes could occur that could include amounts in excess of any accruals which management has established. Were such unfavorable final outcomes to occur, it is possible that they could have a material adverse effect on our financial position, results of operations and cash flows. Under our Certificate of Incorporation, we have agreed to indemnify our officers and directors for certain events or occurrences while the officer or director is, or was, serving at our request in such capacity. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have a directors and officers liability insurance policy that covers a portion of our exposure. As a result of our insurance policy coverage, we believe the estimated fair value of these indemnification agreements is minimal. We have no liabilities recorded for these agreements as of June 30, 2024 and December 31, 2023. We are periodically subject to loss contingencies resulting from custom duties assessments. We accrue for anticipated costs when an assessment has indicated that a loss is probable and can be reasonably estimated. We have received claims worth approximately $13 million in principal and $5 million to $6 million for interest and penalties. We are currently defending our position with respect to these claims in the respected administrative procedures. Due to uncertainty in the amount of the assessment and the timing of our appeal, no liability is recorded as of June 30, 2024. |
STOCK REPURCHASE PROGRAM
STOCK REPURCHASE PROGRAM | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
STOCK REPURCHASE PROGRAM | STOCK REPURCHASE PROGRAM On April 18, 2019, we announced a share repurchase authorization of up to $350 million of common stock. This authorization replaces previous authorizations and has no expiration date. We may repurchase shares through the open market, privately negotiated transactions or other programs, subject to market conditions. During the three and six months ended June 30, 2024, we repurchased approximately 34 thousand shares for $5.1 million and 120 thousand shares for $17.1 million, respectively. During the three and six months ended June 30, 2023, we repurchased approximately 81 thousand shares for $9.3 million and 252 thousand shares for $29.0 million, respectively. As of June 30, 2024, there was $43.5 million of authorized share repurchases remaining under the existing authorization. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION We issue restricted stock units (“RSUs”), which consist of time-based and performance-based awards, to employees under stock awards plans approved by stockholders. In addition, RSUs are issued to non-employee directors under a Restricted Stock Unit Award Agreement for Directors pursuant to the Company’s 2018 Equity Incentive Plan. RSUs granted to employees vest according to a specified performance period and/or vesting period. Time-based RSUs generally vest over three years. Performance-based RSUs vest at the end of the specified performance period, generally three years, assuming required performance or market vesting conditions are met. For awards granted in the first quarter of 2023 and thereafter, our performance-based RSUs will vest solely based on our return on invested capital (“ROIC”). Award share payouts depend on the extent to which the ROIC performance goal has been achieved, but the final payout is adjusted by a total shareholder return (“TSR”) modifier. At the time of vesting, the vested shares of common stock are issued in the employee’s name. In addition, RSU awards are generally net settled (shares are withheld to cover the employee tax obligation). RSUs granted to directors are only time-based and generally vest on or around the first anniversary of the date of grant. The fair value of both time-based RSUs and performance-based RSUs pertaining to internal performance metrics is determined using the closing price of our common stock on the grant date. The fair value of performance-based RSUs pertaining to TSR is estimated using a Monte Carlo simulation. Inputs and assumptions used to calculate the fair value are shown in the table below. The fair value of these RSUs is expensed over the vesting period using the straight-line method or using the graded vesting method when an employee becomes eligible to retain the award at retirement. Six Months Ended June 30, 2024 2023 Fair value per stock award $ 145.79 $ 116.17 Grant date stock price $ 141.00 $ 111.38 Assumptions: Aptar's stock price expected volatility 18.80 % 20.00 % Expected average volatility of peer companies 34.80 % 39.70 % Correlation assumption 30.70 % 33.30 % Risk-free interest rate 4.51 % 3.83 % Dividend yield assumption 1.16 % 1.36 % A summary of RSU activity as of June 30, 2024 and changes during the six month period then ended is presented below: Time-Based RSUs Performance-Based RSUs Units Weighted Average Units Weighted Average Nonvested at January 1, 2024 335,874 $ 115.15 514,383 $ 130.10 Granted 117,660 136.61 129,614 145.79 Vested (173,168) 119.27 (97,794) 162.33 Forfeited (2,352) 117.67 (26,886) 146.76 Nonvested at June 30, 2024 278,014 $ 121.51 519,317 $ 127.13 Included in the time-based RSU activity for the six months ended June 30, 2024 are 10,208 units granted to non-employee directors and 11,508 units vested related to non-employee directors. Six Months Ended June 30, 2024 2023 Compensation expense $ 21,966 $ 22,008 Fair value of units vested 34,991 27,178 Intrinsic value of units vested 38,040 31,809 The actual tax benefit realized for the tax deduction from RSUs was approximately $7.1 million and $5.4 million in the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, there was $53.3 million of total unrecognized compensation cost relating to RSU awards which is expected to be recognized over a weighted-average period of 2.0 years. Historically we issued stock options to our employees and non-employee directors. We did not issue stock options between 2019 and 2022. Stock options were reinstituted in 2023 and valued based on the Black-Scholes model and generally vest ratably over three years and expire 10 years after grant. The Company uses historical data to estimate expected life and volatility. The weighted-average fair value of stock options granted under the stock awards plans were $36.07 per share for all employees during the first six months of 2024. The weighted-average fair value of stock options granted under the stock awards plans were $19.84 and $24.23 per share for executive officers and all other employees, respectively, during the first six months of 2023. Aptar executive officers received stock options with an exercise price that was 110% of the closing market price on the date of grant. These values were estimated on the respective dates of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: Stock Award Plans: Six Months Ended June 30, 2024 2023 Dividend Yield 1.28 % 1.41 % Expected Stock Price Volatility 17.03 % 16.55 % Risk-free Interest Rate 4.51 % 3.57 % Expected Life of Option (years) 7.0 7.0 A summary of option activity under our stock plans during the six months ended June 30, 2024 is presented below: Stock Awards Plans Director Stock Option Plans Options Weighted Average Options Weighted Average Outstanding, January 1, 2024 2,182,784 $ 80.63 19,000 $ 66.59 Granted 249,805 141.00 — — Exercised (377,602) 70.66 (19,000) 66.59 Forfeited or expired (5,185) 93.42 — — Outstanding at June 30, 2024 2,049,802 $ 89.80 — $ — Exercisable at June 30, 2024 1,593,918 $ 78.35 — $ — Weighted-Average Remaining Contractual Term (Years): Outstanding at June 30, 2024 4.2 0.0 Exercisable at June 30, 2024 2.7 0.0 Aggregate Intrinsic Value: Outstanding at June 30, 2024 $ 110,862 $ — Exercisable at June 30, 2024 $ 104,452 $ — Intrinsic Value of Options Exercised During the Six Months Ended: June 30, 2024 $ 25,454 $ 1,394 June 30, 2023 $ 16,886 $ 854 Six Months Ended June 30, 2024 2023 Compensation expense (included in SG&A) $ 4,376 $ 3,147 Compensation expense (included in Cost of sales) 492 278 Compensation expense, Total $ 4,868 $ 3,425 Compensation expense, net of tax 5,272 3,425 Grant date fair value of options vested 2,306 — The increase in stock option expense is due to the newly issued options as discussed above. Cash received from option exercises for the six months ended June 30, 2024 and 2023 was approximately $27.8 million and $24.3 million, respectively. The actual tax benefit realized for the tax deduction from option exercises was approximately $6.2 million and $4.3 million in the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, there was $6.0 million of total unrecognized compensation cost relating to stock option awards which is expected to be recognized over a weighted-average period of 2.3 years. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic net income per share is calculated by dividing net income attributable to Aptar by the weighted-average number of common shares outstanding during the period. Diluted net income per share is calculated by dividing the net income attributable to Aptar by the weighted-average number of common and common equivalent shares outstanding during the applicable period. The difference between basic and diluted earnings per share is attributable to stock-based compensation awards. Stock-based compensation awards for which total employee proceeds exceed the average market price over the applicable period would have an antidilutive effect on earnings per share, and accordingly, are excluded from the calculation of diluted earnings per share. The reconciliation of basic and diluted earnings per share for the three and six months ended June 30, 2024 and 2023 were as follows: Three Months Ended June 30, 2024 June 30, 2023 Diluted Basic Diluted Basic Consolidated operations Income available to common stockholders $ 90,454 $ 90,454 $ 83,072 $ 83,072 Average equivalent shares Shares of common stock 66,312 66,312 65,568 65,568 Effect of dilutive stock-based compensation Stock options 774 — 871 — Restricted stock 489 — 416 — Total average equivalent shares 67,575 66,312 66,855 65,568 Net income per share $ 1.34 $ 1.36 $ 1.24 $ 1.27 Six Months Ended June 30, 2024 June 30, 2023 Diluted Basic Diluted Basic Consolidated operations Income available to common stockholders $ 173,558 $ 173,558 $ 137,836 $ 137,836 Average equivalent shares Shares of common stock 66,188 66,188 65,470 65,470 Effect of dilutive stock-based compensation Stock options 783 — 889 — Restricted stock 538 — 389 — Total average equivalent shares 67,509 66,188 66,748 65,470 Net income per share $ 2.57 $ 2.62 $ 2.07 $ 2.11 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We are organized into three reporting segments. Operations that sell proprietary dispensing systems, drug delivery systems, sealing solutions and services to the prescription drug, consumer health care, injectables, active material science solutions and digital health markets form our Aptar Pharma segment. Operations that sell dispensing systems and sealing solutions to the beauty, personal care and home care markets form our Aptar Beauty segment. Operations that sell dispensing systems, sealing solutions and food service trays to the food, beverage, personal care, home care, beauty and healthcare markets form our Aptar Closures segment. Aptar Pharma and Aptar Beauty are named for the markets they serve with multiple product platforms, while Aptar Closures is named primarily for a single product platform that serves all available markets. The accounting policies of the segments are the same as those described in Part II, Item 8, Note 1 - Summary of Significant Accounting Policies in our Annual Report on Form 10-K for the year ended December 31, 2023. We evaluate performance of our reporting segments and allocate resources based upon Adjusted EBITDA. Adjusted EBITDA is defined as earnings before net interest, taxes, depreciation, amortization, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items. Financial information regarding our reporting segments is shown below: Three Months Ended Six Months Ended 2024 2023 2024 2023 Total Sales: Aptar Pharma $ 414,783 $ 391,010 $ 822,273 $ 747,121 Aptar Beauty 328,700 338,404 663,580 671,742 Aptar Closures 176,981 177,471 359,678 357,910 Total Sales $ 920,464 $ 906,885 $ 1,845,531 $ 1,776,773 Less: Intersegment Sales: Aptar Pharma $ 250 $ 310 $ 447 $ 375 Aptar Beauty 7,213 8,817 14,773 15,766 Aptar Closures 2,938 1,852 4,800 4,659 Total Intersegment Sales $ 10,401 $ 10,979 $ 20,020 $ 20,800 Net Sales: Aptar Pharma $ 414,533 $ 390,700 $ 821,826 $ 746,746 Aptar Beauty 321,487 329,587 648,807 655,976 Aptar Closures 174,043 175,619 354,878 353,251 Net Sales $ 910,063 $ 895,906 $ 1,825,511 $ 1,755,973 Adjusted EBITDA (1): Aptar Pharma $ 141,488 $ 125,866 $ 273,666 $ 235,164 Aptar Beauty 44,638 43,100 85,772 80,305 Aptar Closures 27,118 27,772 54,279 53,780 Corporate & Other, unallocated (20,476) (15,501) (42,117) (34,337) Acquisition-related costs (2) (140) — (140) (255) Restructuring Initiatives (3) (2,315) (1,943) (5,795) (13,467) Net unrealized investment (loss) gain (4) (140) 2,891 452 3,079 Depreciation and amortization (64,968) (62,267) (129,317) (121,526) Interest Expense (10,061) (9,688) (20,236) (19,916) Interest Income 3,102 648 6,000 1,320 Income before Income Taxes $ 118,246 $ 110,878 $ 222,564 $ 184,147 ________________________________________________ (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, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items. (2) Acquisition-related costs include transaction costs (and purchase accounting adjustments related to acquisitions and investments) (see Note 17 - Acquisitions and Note 18 – Investments in Equity Securities for further details). (3) Restructuring Initiatives includes expense items for the three and six months ended June 30, 2024 and 2023 as follows (see Note 19 – Restructuring Initiatives for further details): Three Months Ended Six Months Ended 2024 2023 2024 2023 Restructuring Initiatives by Plan: Optimization initiative $ 2,315 $ 1,943 $ 5,812 $ 13,483 Prior year initiatives — — (17) (16) Total Restructuring Initiatives $ 2,315 $ 1,943 $ 5,795 $ 13,467 Restructuring Initiatives by Segment: Aptar Pharma $ 65 $ 434 $ 89 $ 1,565 Aptar Beauty 1,199 479 3,909 9,770 Aptar Closures 893 440 1,653 962 Corporate & Other 158 590 144 1,170 Total Restructuring Initiatives $ 2,315 $ 1,943 $ 5,795 $ 13,467 (4) Net unrealized investment (loss) gain represents the change in fair value of our investment in PCT (see Note 18 – Investment in Equity Securities for further details). |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
ACQUISITIONS | ACQUISITIONS Business Combinations On March 1, 2023, we completed the acquisition of all the outstanding capital stock of iD SCENT. Located in Lyon, France, iD SCENT is an expert producer of paper fragrance sampling solutions that present multiple sustainability features. The purchase price was approximately $9.4 million (net of $1.4 million cash acquired) and was funded with cash on hand. The results of iD SCENT have been included in the consolidated financial statements within our Aptar Beauty segment since the date of acquisition. Also on March 1, 2023, we completed the acquisition of 80% of the equity interest of Gulf Closures W.L.L. (“Gulf Closures”). Gulf Closures, located in Bahrain, is a closure manufacturer for beverage products. The purchase price for 80% ownership was approximately $1.5 million (net of $1.2 million cash acquired) and was funded with cash on hand. This values the full company equity at approximately $3.3 million and implies a non-controlling interest valued at approximately $0.7 million as of the acquisition date. The results of Gulf Closures have been included in the consolidated financial statements within our Aptar Closures segment since the date of acquisition. |
INVESTMENT IN EQUITY SECURITIES
INVESTMENT IN EQUITY SECURITIES | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN EQUITY SECURITIES | INVESTMENT IN EQUITY SECURITIES Our investment in equity securities consisted of the following: June 30, December 31, Equity Method Investments: BTY $ 32,124 $ 33,090 Sonmol 4,546 4,751 Desotec GmbH 940 905 Other Investments: PureCycle 1,725 1,106 YAT 5,229 5,352 Loop 2,894 2,894 Others 1,069 1,105 $ 48,527 $ 49,203 Equity Method Investments Jinyu On December 10, 2023, we entered into a Share Purchase Agreement to acquire 40% of the equity interests in Ningbo Jinyu Technology Industry Co., Ltd. (referred to as “Jinyu”), a leading manufacturer of dispensing technologies in China for approximately $84 million subject to final closing conditions. This transaction is expected to close in 2024, subject to satisfaction and completion of various closing conditions. BTY On January 1, 2020, we acquired 49% of the equity interests in three related companies: Suzhou Hsing Kwang, Suqian Hsing Kwang and Suzhou BTY (collectively referred to as “BTY”) for an approximate purchase price of $32.0 million. We have a call option to acquire an additional 26% to 31% of BTY’s equity interests following the initial lock-up period of 5 years based on a predetermined formula. Subsequent to the second lock-up period, which ends 3 years after the initial lock-up period, we have a call option to acquire the remaining equity interests of BTY based on a predetermined formula. Additionally, the selling shareholders of BTY have a put option for the remaining equity interest to be acquired by Aptar based on a predetermined formula. The BTY entities are leading Chinese manufacturers of high quality, decorative metal components, metal-plastic sub-assemblies, and complete color cosmetics packaging solutions for the beauty industry. For the six months ended June 30, 2024 and June 30, 2023, Aptar had purchases of $5.8 million and $7.6 million, respectively, from BTY. As of June 30, 2024 and December 31, 2023, approximately $2.4 million and $1.8 million, respectively, was due to BTY and included in accounts payable, accrued and other liabilities on our Condensed Consolidated Balance Sheets. Sonmol On April 1, 2020, we invested $5.0 million to acquire 30% of the equity interests in Healthcare, Inc., Shanghai Sonmol Internet Technology Co., Ltd. and its subsidiary, Shanghai Sonmol Medical Equipment Co., Ltd. (collectively referred to as “Sonmol”). Sonmol is a leading Chinese pharmaceutical company that provides consumer electric devices and connected devices for asthma control. Desotec GmbH During 2009, we invested €574 thousand to acquire 23% of the equity interests in Desotec GmbH, a leading manufacturer of specialty assembly machines for bulk processing for the pharmaceutical, beauty and closures markets. Other Investments In prior years, we invested, through a series of transactions, an aggregate amount of $2.9 million in preferred equity investments in Loop, a sustainability company. In prior years, we also invested, through a series of transactions, $3.0 million in PureCycle and received $0.7 million of equity in exchange for our resource dedication for technological partnership and support. In March 2021, PureCycle became a publicly-traded company and listed its common stock on Nasdaq under the ticker symbol “PCT,” At that time, our investment in PureCycle was converted into shares of common stock of PCT resulting in less than a 1% ownership interest. This investment is now recorded at fair value based on observable market prices for identical assets and the change in fair value is recorded as a net investment gain or loss in the Condensed Consolidated Statements of Income. We have sold the following PCT shares related to the PureCycle investment: Shares Sold Proceeds Realized Gain 2021 191,349 $ 2,434 $ 2,000 2022 157,600 $ 1,599 $ 1,213 Q3 2023 510,449 $ 5,604 $ 4,188 On April 26, 2024, we received $0.2 million of equity in exchange for our resource dedication for technological partnership and support. For the three and six months ended June 30, 2024 and 2023, we recorded the following net investment gain on our investment in PureCycle: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net investment gain $ (140) $ 2,891 $ 452 $ 3,079 On July 7, 2021, we investe d approximately $5.9 million to acquire 10% of the equity interests in YAT, a multi-functional, science-driven online skincare solutions company. |
RESTRUCTURING INITIATIVES
RESTRUCTURING INITIATIVES | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING INITIATIVES | RESTRUCTURING INITIATIVES During the third quarter of 2022, we began an initiative to better leverage our fixed cost base through growth and cost reduction measures. For the three and six months ended June 30, 2024, we recognized $2.3 million and $5.8 million of restructuring costs related to this initiative, respectively. For the three and six months ended June 30, 2023, we recognized $1.9 million and $13.5 million of restructuring costs related to this initiative, respectively. The cumulative expense incurred as of June 30, 2024 was $57.5 million. As of June 30, 2024, we have recorded the following activity associated with our optimization initiative: Beginning Reserve at December 31, 2023 Net Charges for the Six Months Ended June 30, 2024 Cash Paid Interest and Ending Reserve at June 30, 2024 Employee severance $ 27,078 $ 2,890 $ (9,179) $ (311) $ 20,478 Professional fees and other costs 2,810 2,922 (2,403) (15) 3,314 Totals $ 29,888 $ 5,812 $ (11,582) $ (326) $ 23,792 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 90,454 | $ 83,072 | $ 173,558 | $ 137,836 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of AptarGroup, Inc. and our subsidiaries. The terms “AptarGroup,” “Aptar,” “Company,” “we,” “us” or “our” as used herein refer to AptarGroup, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated. Certain previously reported amounts have been reclassified to conform to the current period presentation. In the opinion of management, the unaudited Condensed Consolidated Financial Statements (the “Condensed Consolidated Financial Statements”) include all normal recurring adjustments necessary for a fair statement of consolidated financial position, results of operations, comprehensive income, changes in equity and cash flows for the interim periods presented. The accompanying Condensed Consolidated Financial Statements have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures made are adequate to make the information presented not misleading. Also, certain financial position data included herein was derived from the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 but does not include all disclosures required by U.S. GAAP. Accordingly, these Condensed Consolidated Financial Statements and related notes should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. The results of operations of any interim period are not necessarily indicative of the results that may be expected for the year. |
ADOPTION OF RECENT ACCOUNTING STANDARDS | ADOPTION OF RECENT ACCOUNTING STANDARDS Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB’s Accounting Standards Codification. In March 2020, the FASB issued ASU 2020-04, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments to this update apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 was further amended in January 2021 by ASU 2021-01 which clarified the applicability of certain provisions. Both standards are effective upon issuance and could be adopted any time prior to December 31, 2022. The guidance in ASU 2020-04 and ASU 2021-01 is optional and may be elected over time as reference rate reform activities occur. We adopted this guidance in the second quarter of 2023 and have transitioned away from the London Interbank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”) in our revolving credit facility. In November 2023, the FASB issued ASU 2023-07, Improvement to Reportable Segment Disclosures, which requires enhanced disclosures about significant segment expenses on an annual and interim basis. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and are to be applied on a retrospective basis. We are evaluating the impact of the standard on our segment reporting disclosures. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which is intended to improve income tax disclosure requirements by requiring (i) consistent categories and greater disaggregation of information in the rate reconciliation and (ii) the disaggregation of income taxes paid by jurisdiction. The guidance makes several other changes to income tax disclosure requirements. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and are required to be applied prospectively with the option of retrospective application. We are evaluating the impact of the standard on our income tax disclosures. Other accounting standards that have been issued by the FASB or other standards-setting bodies did not have a material impact on our Condensed Consolidated Financial Statements. |
INCOME TAXES | INCOME TAXES We compute taxes on income in accordance with the tax rules and regulations of the many taxing authorities where income is earned. The income tax rates imposed by these taxing authorities may vary substantially. Taxable income may differ from pre-tax income for U.S. GAAP financial accounting purposes. To the extent that these differences create temporary differences between the tax basis of an asset or liability and our reported amount in the U.S. GAAP financial statements, an appropriate provision for deferred income taxes is made. We maintain our assertion that the cash and distributable reserves at our non-U.S. affiliates are indefinitely reinvested with the following exceptions: all earnings in Germany and the pre-2020 earnings in Italy, Switzerland and Colombia. As of June 30, 2024, under currently enacted laws, we do not have a balance of foreign earnings that will be subject to U.S. taxation upon repatriation. We will provide for the necessary withholding and local income taxes when management decides that an affiliate should make a distribution. These decisions are made taking into consideration the financial requirements of the non-U.S. affiliates and our global cash management goals. See Note 5 - Income Taxes for more information. We provide a liability for the amount of unrecognized tax benefits from uncertain tax positions. This liability is provided whenever we determine that a tax benefit will not meet a more-likely-than-not threshold for recognition. We are subject to the examination of our returns and other tax matters by the U.S. Internal Revenue Service and other tax authorities and government bodies. We believe that we have adequately provided a tax reserve for any adjustments that may result from tax examinations or uncertain tax positions. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are resolved in a manner inconsistent with our expectations, we could be required to adjust our provision for income taxes in the period such resolution occurs. The resolution of each of these audits is not expected to be material to our Condensed Consolidated Financial Statements. |
ASSETS HELD FOR SALE | ASSETS HELD FOR SALE Assets to be disposed of by sale are reported at the lower of their carrying amount or fair value less costs to sell, and are not depreciated while they are held for sale. During the second quarter of 2023, we recorded $0.7 million as assets held for sale within prepaid and other on our Condensed Consolidated Balance Sheets related to three buildings located in France. During the third quarter of 2023, two of the three buildings were sold and we recognized a $0.8 million gain on sale. As of June 30, 2024, one building is still held for sale and expected to be sold by year end 2024. |
SUPPLY CHAIN FINANCE PROGRAM | SUPPLY CHAIN FINANCE PROGRAM We facilitate a supply chain finance program (“SCF”) across Europe and the U.S. that is administered by a third-party platform. Eligible suppliers can elect to receive early payment of invoices, less an interest deduction, and negotiate their receivable sales arrangements through the third-party platform on behalf of the respective SCF bank. We are not a party to those agreements, and the terms of our payment obligations are not impacted by a supplier's participation in the SCF. Accordingly, we have concluded that this program continues to be a trade payable program and is not indicative of a borrowing arrangement. Under these agreements, the average payment terms range from 60 to 120 days and are based on industry standards and best practices within each of our regions. All outstanding amounts related to suppliers participating in the SCF are recorded within accounts payable, accrued and other liabilities in our Condensed Consolidated Balance Sheets, and associated payments are included in operating activities within our Condensed Consolidated Statements of Cash Flows. As of June 30, 2024, the amounts due to suppliers participating in the SCF and included in accounts payable, accrued and other liabilities were approximately $36.2 million. Collection and payment periods tend to be longer for our operations located outside the United States due to local business practices. We have also seen an increasing trend in pressure from certain customers to lengthen their payment terms. As the majority of our products are made to order, we have not needed to keep significant amounts of finished goods inventory to meet customer requirements. However, some of our contracts specify an amount of finished goods safety stock we are required to maintain. To the extent our financial position allows and there is a clear financial benefit, we from time-to-time benefit from early payment discounts with some suppliers. We have lengthened the payment terms with our suppliers to be in line with customer trends. While we have offered a third party alternative for our suppliers to receive payments sooner, we generally do not utilize these offerings from our customers as the economic conditions currently are not beneficial for us. |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue by segment by geographic area | Revenue by segment and geography based on shipped to locations for the three and six months ended June 30, 2024 and 2023 were as follows: For the Three Months Ended June 30, 2024 Segment Europe Domestic Latin Asia Total Aptar Pharma $ 207,493 $ 138,734 $ 13,301 $ 55,005 $ 414,533 Aptar Beauty 190,740 66,618 42,207 21,922 321,487 Aptar Closures 51,894 84,468 22,283 15,398 174,043 Total $ 450,127 $ 289,820 $ 77,791 $ 92,325 $ 910,063 For the Three Months Ended June 30, 2023 Segment Europe Domestic Latin Asia Total Aptar Pharma $ 208,062 $ 113,613 $ 15,669 $ 53,356 $ 390,700 Aptar Beauty 211,774 56,940 39,501 21,372 329,587 Aptar Closures 58,810 81,400 20,879 14,530 175,619 Total $ 478,646 $ 251,953 $ 76,049 $ 89,258 $ 895,906 For the Six Months Ended June 30, 2024 Segment Europe Domestic Latin Asia Total Aptar Pharma $ 419,668 $ 264,544 $ 25,923 $ 111,691 $ 821,826 Aptar Beauty 396,930 129,895 80,394 41,588 648,807 Aptar Closures 107,921 173,284 43,556 30,117 354,878 Total $ 924,519 $ 567,723 $ 149,873 $ 183,396 $ 1,825,511 For the Six Months Ended June 30, 2023 Segment Europe Domestic Latin Asia Total Aptar Pharma $ 400,182 $ 228,925 $ 23,866 $ 93,773 $ 746,746 Aptar Beauty 421,126 115,928 76,066 42,856 655,976 Aptar Closures 116,137 166,168 41,245 29,701 353,251 Total $ 937,445 $ 511,021 $ 141,177 $ 166,330 $ 1,755,973 |
Schedule of opening and closing balances of contract assets and contract liabilities | The opening and closing balances of our contract asset and contract liabilities were as follows: Balance as of December 31, 2023 Balance as of June 30, 2024 Increase/ Contract asset (current) $ 18,033 $ 13,783 $ (4,250) Contract liability (current) 60,507 64,435 3,928 Contract liability (long-term) 37,756 42,102 4,346 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories, by component | Inventories, by component net of reserves, consisted of: June 30, December 31, Raw materials $ 131,954 $ 145,798 Work in process 176,527 176,191 Finished goods 176,127 191,064 Total $ 484,608 $ 513,053 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the six months ended June 30, 2024 by reporting segment were as follows: Aptar Aptar Aptar Closures Total Balance as of December 31, 2023 $ 508,447 $ 287,097 $ 167,874 $ 963,418 Foreign currency exchange effects (10,089) (2,585) (669) (13,343) Balance as of June 30, 2024 $ 498,358 $ 284,512 $ 167,205 $ 950,075 |
Schedule of amortized intangible assets | The table below shows a summary of intangible assets as of June 30, 2024 and December 31, 2023. June 30, 2024 December 31, 2023 Weighted Average Amortization Period (Years) Gross Accumulated Net Gross Accumulated Net Amortized intangible assets: Patents 10.0 $ 7,139 $ (1,968) $ 5,171 $ 7,362 $ (1,754) $ 5,608 Acquired technology 11.2 140,643 (75,255) 65,388 142,837 (70,520) 72,317 Customer relationships 13.6 305,349 (135,198) 170,151 308,889 (124,648) 184,241 Trademarks and trade names 8.0 43,078 (35,188) 7,890 43,932 (33,368) 10,564 License agreements and other 32.7 16,846 (7,116) 9,730 17,213 (6,732) 10,481 Total intangible assets 13.5 $ 513,055 $ (254,725) $ 258,330 $ 520,233 $ (237,022) $ 283,211 |
Schedule of future estimated amortization expense | As of June 30, 2024, future estimated amortization expense for the years ending December 31 is as follows: 2024 $ 20,276 (remaining estimated amortization for 2024) 2025 39,880 2026 37,563 2027 30,410 2028 21,174 Thereafter 109,027 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of short-term debt obligations | At June 30, 2024 and December 31, 2023, our notes payable, revolving credit facility and overdrafts consisted of the following: June 30, December 31, Revolving credit facility 6.44% $ 130,000 $ 80,662 Overdrafts 3.08% to 6.00% 6,320 1,132 $ 136,320 $ 81,794 |
Schedule of long-term obligations | At June 30, 2024 and December 31, 2023, our long-term obligations consisted of the following: June 30, 2024 December 31, 2023 Notes payable 0.10% – 2.25%, due in monthly and annual installments through 2030 $ 16,607 $ 14,988 Senior unsecured notes 3.4%, due in 2024 50,000 50,000 Senior unsecured notes 3.5%, due in 2024 — 100,000 Senior unsecured notes 1.2%, due in 2024 214,220 220,810 Senior unsecured notes 3.6%, due in 2025 125,000 125,000 Senior unsecured notes 3.6%, due in 2026 125,000 125,000 Senior unsecured notes 3.6%, due in 2032, net of discount of $0.8 million 399,206 399,154 Finance Lease Liabilities 24,376 26,478 Unamortized debt issuance costs (3,478) (3,816) $ 950,931 $ 1,057,614 Current maturities of long-term obligations (269,399) (376,426) Total long-term obligations $ 681,532 $ 681,188 |
Schedule of maturities of long-term debt | The aggregate long-term maturities, excluding finance lease liabilities and unamortized debt issuance costs, which are discussed in Note 7, due annually from the current balance sheet date for the next five years and thereafter are: Year One $ 266,123 Year Two 134,218 Year Three 130,330 Year Four 73 Year Five 42 Thereafter 399,247 |
Schedule of covenants on revolving credit facility and corporate long-term obligations | Our amended revolving credit facility and corporate long-term obligations require us to satisfy certain financial and other covenants including: Requirement Level at June 30, 2024 Consolidated Leverage Ratio (1) Maximum of 3.50 to 1.00 1.29 to 1.00 Consolidated Interest Coverage Ratio (1) Minimum of 3.00 to 1.00 16.97 to 1.00 ________________________________________ (1) |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of components of lease expense | The components of lease expense for the three and six months ended June 30, 2024 and 2023 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease cost $ 4,854 $ 5,277 $ 9,735 $ 10,691 Finance lease cost: Amortization of right-of-use assets $ 1,591 $ 867 $ 3,261 $ 1,778 Interest on lease liabilities 302 295 598 594 Total finance lease cost $ 1,893 $ 1,162 $ 3,859 $ 2,372 Short-term lease and variable lease costs $ 4,998 $ 5,197 $ 10,196 $ 10,109 |
Schedule of supplemental cash flow information related to leases | Supplemental cash flow information related to leases were as follows: Six Months Ended June 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,754 $ 10,640 Operating cash flows from finance leases 647 600 Financing cash flows from finance leases 1,821 1,649 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 12,059 $ 6,597 Finance leases 311 352 |
RETIREMENT AND DEFERRED COMPE_2
RETIREMENT AND DEFERRED COMPENSATION PLANS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit cost | Components of Net Periodic Benefit Cost: Domestic Plans Foreign Plans Three Months Ended June 30, 2024 2023 2024 2023 Service cost $ 2,366 $ 2,410 $ 1,603 $ 1,487 Interest cost 2,252 2,157 867 917 Expected return on plan assets (3,130) (3,095) (558) (589) Amortization of net loss — — 257 229 Amortization of prior service cost — — 26 45 Net periodic benefit cost $ 1,488 $ 1,472 $ 2,195 $ 2,089 Domestic Plans Foreign Plans Six Months Ended June 30, 2024 2023 2024 2023 Service cost $ 4,731 $ 4,819 $ 3,233 $ 2,957 Interest cost 4,484 4,315 1,742 1,820 Expected return on plan assets (6,231) (6,189) (1,122) (1,169) Amortization of net loss — — 516 457 Amortization of prior service cost — — 54 88 Net periodic benefit cost $ 2,984 $ 2,945 $ 4,423 $ 4,153 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of changes in accumulated other comprehensive (loss) income by component | Changes in Accumulated Other Comprehensive (Loss) Income by Component: Foreign Currency Defined Benefit Pension Plans Derivatives Total Balance - December 31, 2022 $ (328,740) $ (5,951) $ (6,675) $ (341,366) Other comprehensive income (loss) before reclassifications 24,129 68 (5,131) 19,066 Amounts reclassified from accumulated other comprehensive income — 387 — 387 Net current-period other comprehensive income (loss) 24,129 455 (5,131) 19,453 Balance - June 30, 2023 $ (304,611) $ (5,496) $ (11,806) $ (321,913) Balance - December 31, 2023 $ (280,082) $ (11,891) $ (16,761) $ (308,734) Other comprehensive (loss) income before reclassifications (65,805) 102 5,509 (60,194) Amounts reclassified from accumulated other comprehensive income — 404 — 404 Net current-period other comprehensive (loss) income (65,805) 506 5,509 (59,790) Balance - June 30, 2024 $ (345,887) $ (11,385) $ (11,252) $ (368,524) |
Schedule of reclassifications out of accumulated other comprehensive (loss) income | Reclassifications Out of Accumulated Other Comprehensive (Loss) Income: Details about Accumulated Other Amount Reclassified from Accumulated Other Comprehensive Income Affected Line in the Statement Three Months Ended June 30, 2024 2023 Defined Benefit Pension Plans Amortization of net loss $ 257 $ 229 (1) Amortization of prior service cost 26 45 (1) 283 274 Total before tax (82) (79) Tax impact $ 201 $ 195 Net of tax Total reclassifications for the period $ 201 $ 195 Details about Accumulated Other Amount Reclassified from Accumulated Other Comprehensive Income Affected Line in the Statement Six Months Ended June 30, 2024 2023 Defined Benefit Pension Plans Amortization of net loss $ 516 $ 457 (1) Amortization of prior service cost 54 88 (1) 570 545 Total before tax (166) (158) Tax impact $ 404 $ 387 Net of tax Total reclassifications for the period $ 404 $ 387 ______________________________________________ (1) These accumulated other comprehensive income components are included in the computation of total net periodic benefit costs, net of tax. See Note 8 – Retirement and Deferred Compensation Plans for additional details. |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value of derivative instruments in the consolidated balance sheets | Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 June 30, 2024 December 31, 2023 Balance Sheet Location Derivatives Designated as Hedging Instruments Derivatives not Designated as Hedging Instruments Derivatives Designated as Hedging Instruments Derivatives not Designated as Hedging Instruments Derivative Assets Foreign Exchange Contracts Prepaid and other $ — $ 949 $ — $ 386 $ — $ 949 $ — $ 386 Derivative Liabilities Foreign Exchange Contracts Accounts payable, accrued and other liabilities $ — $ 646 $ — $ 221 Cross Currency Swap Contract (1) Accounts payable, accrued and other liabilities 14,901 — 22,199 — $ 14,901 $ 646 $ 22,199 $ 221 __________________________ (1) This cross currency swap agreement is composed of both an interest component and a foreign exchange component. |
Schedule of effect of cash flow hedge accounting on accumulated other comprehensive income (loss) | The Effect of Derivatives Designated as Hedging Instruments on Accounting on Accumulated Other Comprehensive Income (Loss) for the Three Months Ended June 30, 2024 and 2023 Derivatives Designated as Hedging Instruments Amount of Gain (Loss) Location of (Loss) Amount of Gain (Loss) Total Amount of Affected Income Statement Line Item 2024 2023 2024 2023 Cross currency swap agreement: Interest component $ — $ — Interest expense $ — $ — $ (10,061) Foreign exchange component 2,601 3,763 Miscellaneous, net — — (795) $ 2,601 $ 3,763 $ — $ — The Effect of Derivatives Designated as Hedging Instruments on Accumulated Other Comprehensive Income (Loss) for the Six Months Ended June 30, 2024 and 2023 Derivatives Designated as Hedging Instruments Amount of Gain Location of Gain Recognized Amount of Gain Total Amount of Affected Income Statement Line Item 2024 2023 2024 2023 Cross currency swap agreement: Interest component $ — $ — Interest expense $ — $ — $ (20,236) Foreign exchange component 5,509 (5,131) Miscellaneous, net — — (1,654) $ 5,509 $ (5,131) $ — $ — |
Schedule of effect of derivatives not designated as hedging instruments on the consolidated statements of income | The Effect of Derivatives Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Income for the Three Months Ended June 30, 2024 and 2023 Derivatives Not Designated Location of (Loss) Gain Recognized Amount of (Loss) Gain 2024 2023 Foreign Exchange Contracts Other (Expense) Income: $ 437 $ 59 $ 437 $ 59 The Effect of Derivatives Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Income for the Six Months Ended June 30, 2024 and 2023 Derivatives Not Designated Location of Loss Recognized Amount of Loss 2024 2023 Foreign Exchange Contracts Other (Expense) Income: $ 140 $ (800) $ 140 $ (800) |
Schedule of offsetting derivative assets and liabilities | Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Gross Amounts not Offset in the Statement of Financial Position Gross Amount Financial Instruments Cash Collateral Received Net Amount June 30, 2024 Derivative Assets $ 949 — $ 949 — — $ 949 Total Assets $ 949 — $ 949 — — $ 949 Derivative Liabilities $ 15,547 — $ 15,547 — — $ 15,547 Total Liabilities $ 15,547 — $ 15,547 — — $ 15,547 December 31, 2023 Derivative Assets $ 386 — $ 386 — — $ 386 Total Assets $ 386 — $ 386 — — $ 386 Derivative Liabilities $ 22,420 — $ 22,420 — — $ 22,420 Total Liabilities $ 22,420 — $ 22,420 — — $ 22,420 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair values of financial assets and liabilities | As of June 30, 2024, the fair values of our financial assets and liabilities were categorized as follows: Total Level 1 Level 2 Level 3 Assets Investment in equity securities (1) $ 1,725 $ 1,725 $ — $ — Foreign exchange contracts (2) 949 — 949 — Convertible notes (3) 5,650 — — 5,650 Total assets at fair value $ 8,324 $ 1,725 $ 949 $ 5,650 Liabilities Foreign exchange contracts (2) $ 646 $ — $ 646 $ — Cross currency swap contract (2) 14,901 — 14,901 — Total liabilities at fair value $ 15,547 $ — $ 15,547 $ — As of December 31, 2023, the fair values of our financial assets and liabilities were categorized as follows: Total Level 1 Level 2 Level 3 Assets Investment in equity securities (1) $ 1,106 $ 1,106 $ — $ — Foreign exchange contracts (2) 386 — 386 — Convertible note (3) 5,650 — — 5,650 Total assets at fair value $ 7,142 $ 1,106 $ 386 $ 5,650 Liabilities Foreign exchange contracts (2) $ 221 $ — $ 221 $ — Cross currency swap contract (2) 22,199 — 22,199 — Total liabilities at fair value $ 22,420 $ — $ 22,420 $ — ________________________________________________ (1) Investment in PureCycle Technologies (“PCT” or “PureCycle”). See Note 18 – Investment in Equity Securities for discussion of this investment. (2) Market approach valuation technique based on observable market transactions of spot and forward rates. (3) Investment in convertible notes in Enable Injections, Inc. and Siklus Refill Pte, Ltd. The investments are included within Miscellaneous assets in our Condensed Consolidated Balance Sheets. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of weighted-average assumptions used to estimate fair value of restricted stock units | Inputs and assumptions used to calculate the fair value are shown in the table below. The fair value of these RSUs is expensed over the vesting period using the straight-line method or using the graded vesting method when an employee becomes eligible to retain the award at retirement. Six Months Ended June 30, 2024 2023 Fair value per stock award $ 145.79 $ 116.17 Grant date stock price $ 141.00 $ 111.38 Assumptions: Aptar's stock price expected volatility 18.80 % 20.00 % Expected average volatility of peer companies 34.80 % 39.70 % Correlation assumption 30.70 % 33.30 % Risk-free interest rate 4.51 % 3.83 % Dividend yield assumption 1.16 % 1.36 % |
Schedule of restricted stock unit activity | A summary of RSU activity as of June 30, 2024 and changes during the six month period then ended is presented below: Time-Based RSUs Performance-Based RSUs Units Weighted Average Units Weighted Average Nonvested at January 1, 2024 335,874 $ 115.15 514,383 $ 130.10 Granted 117,660 136.61 129,614 145.79 Vested (173,168) 119.27 (97,794) 162.33 Forfeited (2,352) 117.67 (26,886) 146.76 Nonvested at June 30, 2024 278,014 $ 121.51 519,317 $ 127.13 Included in the time-based RSU activity for the six months ended June 30, 2024 are 10,208 units granted to non-employee directors and 11,508 units vested related to non-employee directors. |
Schedule of compensation expense, fair value, and intrinsic value related to RSU's | Six Months Ended June 30, 2024 2023 Compensation expense $ 21,966 $ 22,008 Fair value of units vested 34,991 27,178 Intrinsic value of units vested 38,040 31,809 |
Schedule of share-based payment award, stock options, valuation assumptions | These values were estimated on the respective dates of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: Stock Award Plans: Six Months Ended June 30, 2024 2023 Dividend Yield 1.28 % 1.41 % Expected Stock Price Volatility 17.03 % 16.55 % Risk-free Interest Rate 4.51 % 3.57 % Expected Life of Option (years) 7.0 7.0 |
Schedule of option activity | A summary of option activity under our stock plans during the six months ended June 30, 2024 is presented below: Stock Awards Plans Director Stock Option Plans Options Weighted Average Options Weighted Average Outstanding, January 1, 2024 2,182,784 $ 80.63 19,000 $ 66.59 Granted 249,805 141.00 — — Exercised (377,602) 70.66 (19,000) 66.59 Forfeited or expired (5,185) 93.42 — — Outstanding at June 30, 2024 2,049,802 $ 89.80 — $ — Exercisable at June 30, 2024 1,593,918 $ 78.35 — $ — Weighted-Average Remaining Contractual Term (Years): Outstanding at June 30, 2024 4.2 0.0 Exercisable at June 30, 2024 2.7 0.0 Aggregate Intrinsic Value: Outstanding at June 30, 2024 $ 110,862 $ — Exercisable at June 30, 2024 $ 104,452 $ — Intrinsic Value of Options Exercised During the Six Months Ended: June 30, 2024 $ 25,454 $ 1,394 June 30, 2023 $ 16,886 $ 854 |
Schedule of compensation expense, and fair value related to options | Six Months Ended June 30, 2024 2023 Compensation expense (included in SG&A) $ 4,376 $ 3,147 Compensation expense (included in Cost of sales) 492 278 Compensation expense, Total $ 4,868 $ 3,425 Compensation expense, net of tax 5,272 3,425 Grant date fair value of options vested 2,306 — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of basic and diluted earnings per share | The reconciliation of basic and diluted earnings per share for the three and six months ended June 30, 2024 and 2023 were as follows: Three Months Ended June 30, 2024 June 30, 2023 Diluted Basic Diluted Basic Consolidated operations Income available to common stockholders $ 90,454 $ 90,454 $ 83,072 $ 83,072 Average equivalent shares Shares of common stock 66,312 66,312 65,568 65,568 Effect of dilutive stock-based compensation Stock options 774 — 871 — Restricted stock 489 — 416 — Total average equivalent shares 67,575 66,312 66,855 65,568 Net income per share $ 1.34 $ 1.36 $ 1.24 $ 1.27 Six Months Ended June 30, 2024 June 30, 2023 Diluted Basic Diluted Basic Consolidated operations Income available to common stockholders $ 173,558 $ 173,558 $ 137,836 $ 137,836 Average equivalent shares Shares of common stock 66,188 66,188 65,470 65,470 Effect of dilutive stock-based compensation Stock options 783 — 889 — Restricted stock 538 — 389 — Total average equivalent shares 67,509 66,188 66,748 65,470 Net income per share $ 2.57 $ 2.62 $ 2.07 $ 2.11 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of financial information regarding the company's reportable segments | Financial information regarding our reporting segments is shown below: Three Months Ended Six Months Ended 2024 2023 2024 2023 Total Sales: Aptar Pharma $ 414,783 $ 391,010 $ 822,273 $ 747,121 Aptar Beauty 328,700 338,404 663,580 671,742 Aptar Closures 176,981 177,471 359,678 357,910 Total Sales $ 920,464 $ 906,885 $ 1,845,531 $ 1,776,773 Less: Intersegment Sales: Aptar Pharma $ 250 $ 310 $ 447 $ 375 Aptar Beauty 7,213 8,817 14,773 15,766 Aptar Closures 2,938 1,852 4,800 4,659 Total Intersegment Sales $ 10,401 $ 10,979 $ 20,020 $ 20,800 Net Sales: Aptar Pharma $ 414,533 $ 390,700 $ 821,826 $ 746,746 Aptar Beauty 321,487 329,587 648,807 655,976 Aptar Closures 174,043 175,619 354,878 353,251 Net Sales $ 910,063 $ 895,906 $ 1,825,511 $ 1,755,973 Adjusted EBITDA (1): Aptar Pharma $ 141,488 $ 125,866 $ 273,666 $ 235,164 Aptar Beauty 44,638 43,100 85,772 80,305 Aptar Closures 27,118 27,772 54,279 53,780 Corporate & Other, unallocated (20,476) (15,501) (42,117) (34,337) Acquisition-related costs (2) (140) — (140) (255) Restructuring Initiatives (3) (2,315) (1,943) (5,795) (13,467) Net unrealized investment (loss) gain (4) (140) 2,891 452 3,079 Depreciation and amortization (64,968) (62,267) (129,317) (121,526) Interest Expense (10,061) (9,688) (20,236) (19,916) Interest Income 3,102 648 6,000 1,320 Income before Income Taxes $ 118,246 $ 110,878 $ 222,564 $ 184,147 ________________________________________________ (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, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items. (2) Acquisition-related costs include transaction costs (and purchase accounting adjustments related to acquisitions and investments) (see Note 17 - Acquisitions and Note 18 – Investments in Equity Securities for further details). (3) Restructuring Initiatives includes expense items for the three and six months ended June 30, 2024 and 2023 as follows (see Note 19 – Restructuring Initiatives for further details): Three Months Ended Six Months Ended 2024 2023 2024 2023 Restructuring Initiatives by Plan: Optimization initiative $ 2,315 $ 1,943 $ 5,812 $ 13,483 Prior year initiatives — — (17) (16) Total Restructuring Initiatives $ 2,315 $ 1,943 $ 5,795 $ 13,467 Restructuring Initiatives by Segment: Aptar Pharma $ 65 $ 434 $ 89 $ 1,565 Aptar Beauty 1,199 479 3,909 9,770 Aptar Closures 893 440 1,653 962 Corporate & Other 158 590 144 1,170 Total Restructuring Initiatives $ 2,315 $ 1,943 $ 5,795 $ 13,467 (4) Net unrealized investment (loss) gain represents the change in fair value of our investment in PCT (see Note 18 – Investment in Equity Securities for further details). |
Schedule of restructuring initiatives | Restructuring Initiatives includes expense items for the three and six months ended June 30, 2024 and 2023 as follows (see Note 19 – Restructuring Initiatives for further details): Three Months Ended Six Months Ended 2024 2023 2024 2023 Restructuring Initiatives by Plan: Optimization initiative $ 2,315 $ 1,943 $ 5,812 $ 13,483 Prior year initiatives — — (17) (16) Total Restructuring Initiatives $ 2,315 $ 1,943 $ 5,795 $ 13,467 Restructuring Initiatives by Segment: Aptar Pharma $ 65 $ 434 $ 89 $ 1,565 Aptar Beauty 1,199 479 3,909 9,770 Aptar Closures 893 440 1,653 962 Corporate & Other 158 590 144 1,170 Total Restructuring Initiatives $ 2,315 $ 1,943 $ 5,795 $ 13,467 |
INVESTMENT IN EQUITY SECURITI_2
INVESTMENT IN EQUITY SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of investments in equity securities | Our investment in equity securities consisted of the following: June 30, December 31, Equity Method Investments: BTY $ 32,124 $ 33,090 Sonmol 4,546 4,751 Desotec GmbH 940 905 Other Investments: PureCycle 1,725 1,106 YAT 5,229 5,352 Loop 2,894 2,894 Others 1,069 1,105 $ 48,527 $ 49,203 |
Schedule of sale of PCT shares related to Purecycle investment | We have sold the following PCT shares related to the PureCycle investment: Shares Sold Proceeds Realized Gain 2021 191,349 $ 2,434 $ 2,000 2022 157,600 $ 1,599 $ 1,213 Q3 2023 510,449 $ 5,604 $ 4,188 |
Schedule of net investment gain/loss | For the three and six months ended June 30, 2024 and 2023, we recorded the following net investment gain on our investment in PureCycle: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net investment gain $ (140) $ 2,891 $ 452 $ 3,079 |
RESTRUCTURING INITIATIVES (Tabl
RESTRUCTURING INITIATIVES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of activity associated with optimization initiative | As of June 30, 2024, we have recorded the following activity associated with our optimization initiative: Beginning Reserve at December 31, 2023 Net Charges for the Six Months Ended June 30, 2024 Cash Paid Interest and Ending Reserve at June 30, 2024 Employee severance $ 27,078 $ 2,890 $ (9,179) $ (311) $ 20,478 Professional fees and other costs 2,810 2,922 (2,403) (15) 3,314 Totals $ 29,888 $ 5,812 $ (11,582) $ (326) $ 23,792 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2023 USD ($) building | Jun. 30, 2024 USD ($) building | Jun. 30, 2023 USD ($) building | |
Product Information [Line Items] | |||
Assets held-for-sale | $ 0.7 | ||
Number of buildings held before the sale | building | 1 | 3 | |
Number of buildings sold | building | 2 | ||
Gain on sale of buildings | $ 0.8 | ||
Supplier finance program obligation, current | $ 36.2 | ||
Minimum | |||
Product Information [Line Items] | |||
Supplier finance program payment terms | 60 days | ||
Maximum | |||
Product Information [Line Items] | |||
Supplier finance program payment terms | 120 days |
REVENUE - Revenue by Geographic
REVENUE - Revenue by Geographic Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
REVENUE | ||||
Total | $ 910,063 | $ 895,906 | $ 1,825,511 | $ 1,755,973 |
Aptar Pharma | ||||
REVENUE | ||||
Total | 414,533 | 390,700 | 821,826 | 746,746 |
Aptar Beauty | ||||
REVENUE | ||||
Total | 321,487 | 329,587 | 648,807 | 655,976 |
Aptar Closures | ||||
REVENUE | ||||
Total | 174,043 | 175,619 | 354,878 | 353,251 |
Europe | ||||
REVENUE | ||||
Total | 450,127 | 478,646 | 924,519 | 937,445 |
Europe | Aptar Pharma | ||||
REVENUE | ||||
Total | 207,493 | 208,062 | 419,668 | 400,182 |
Europe | Aptar Beauty | ||||
REVENUE | ||||
Total | 190,740 | 211,774 | 396,930 | 421,126 |
Europe | Aptar Closures | ||||
REVENUE | ||||
Total | 51,894 | 58,810 | 107,921 | 116,137 |
Domestic | ||||
REVENUE | ||||
Total | 289,820 | 251,953 | 567,723 | 511,021 |
Domestic | Aptar Pharma | ||||
REVENUE | ||||
Total | 138,734 | 113,613 | 264,544 | 228,925 |
Domestic | Aptar Beauty | ||||
REVENUE | ||||
Total | 66,618 | 56,940 | 129,895 | 115,928 |
Domestic | Aptar Closures | ||||
REVENUE | ||||
Total | 84,468 | 81,400 | 173,284 | 166,168 |
Latin America | ||||
REVENUE | ||||
Total | 77,791 | 76,049 | 149,873 | 141,177 |
Latin America | Aptar Pharma | ||||
REVENUE | ||||
Total | 13,301 | 15,669 | 25,923 | 23,866 |
Latin America | Aptar Beauty | ||||
REVENUE | ||||
Total | 42,207 | 39,501 | 80,394 | 76,066 |
Latin America | Aptar Closures | ||||
REVENUE | ||||
Total | 22,283 | 20,879 | 43,556 | 41,245 |
Asia | ||||
REVENUE | ||||
Total | 92,325 | 89,258 | 183,396 | 166,330 |
Asia | Aptar Pharma | ||||
REVENUE | ||||
Total | 55,005 | 53,356 | 111,691 | 93,773 |
Asia | Aptar Beauty | ||||
REVENUE | ||||
Total | 21,922 | 21,372 | 41,588 | 42,856 |
Asia | Aptar Closures | ||||
REVENUE | ||||
Total | $ 15,398 | $ 14,530 | $ 30,117 | $ 29,701 |
REVENUE - Contract Assets and C
REVENUE - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Contract asset (current) | $ 13,783 | $ 18,033 |
Increase / (decrease) in Contract asset (current) | (4,250) | |
Contract liability (current) | 64,435 | 60,507 |
Increase / (decrease) in Contract liability (current) | 3,928 | |
Contract liability (long-term) | 42,102 | $ 37,756 |
Increase / (decrease) in Contract liability (long-term) | 4,346 | |
Revenue recognized previously included in current contract liabilities | 60,300 | |
Revenue recognized previously included in current contract liabilities at the beginning of the year | $ 35,900 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Inventories, by component | ||
Raw materials | $ 131,954 | $ 145,798 |
Work in process | 176,527 | 176,191 |
Finished goods | 176,127 | 191,064 |
Total | $ 484,608 | $ 513,053 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Changes in the carrying amount of goodwill | |
Goodwill, beginning balance | $ 963,418 |
Foreign currency exchange effects | (13,343) |
Goodwill, ending balance | 950,075 |
Operating segment | Aptar Pharma | |
Changes in the carrying amount of goodwill | |
Goodwill, beginning balance | 508,447 |
Foreign currency exchange effects | (10,089) |
Goodwill, ending balance | 498,358 |
Operating segment | Aptar Beauty | |
Changes in the carrying amount of goodwill | |
Goodwill, beginning balance | 287,097 |
Foreign currency exchange effects | (2,585) |
Goodwill, ending balance | 284,512 |
Operating segment | Aptar Closures | |
Changes in the carrying amount of goodwill | |
Goodwill, beginning balance | 167,874 |
Foreign currency exchange effects | (669) |
Goodwill, ending balance | $ 167,205 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Amortized intangible assets | |||||
Gross Carrying Amount | $ 513,055 | $ 513,055 | $ 520,233 | ||
Accumulated Amortization | (254,725) | (254,725) | (237,022) | ||
Net Value | 258,330 | 258,330 | 283,211 | ||
Aggregate amortization expense | $ 10,351 | $ 11,131 | $ 21,674 | $ 22,094 | |
Weighted Average Amortization Period (Years) | |||||
Amortized intangible assets | |||||
Weighted Average Amortization Period (Years) | 13 years 6 months | 13 years 6 months | |||
Patents | |||||
Amortized intangible assets | |||||
Gross Carrying Amount | $ 7,139 | $ 7,139 | 7,362 | ||
Accumulated Amortization | (1,968) | (1,968) | (1,754) | ||
Net Value | $ 5,171 | $ 5,171 | 5,608 | ||
Patents | Weighted Average Amortization Period (Years) | |||||
Amortized intangible assets | |||||
Weighted Average Amortization Period (Years) | 10 years | 10 years | |||
Acquired technology | |||||
Amortized intangible assets | |||||
Gross Carrying Amount | $ 140,643 | $ 140,643 | 142,837 | ||
Accumulated Amortization | (75,255) | (75,255) | (70,520) | ||
Net Value | $ 65,388 | $ 65,388 | 72,317 | ||
Acquired technology | Weighted Average Amortization Period (Years) | |||||
Amortized intangible assets | |||||
Weighted Average Amortization Period (Years) | 11 years 2 months 12 days | 11 years 2 months 12 days | |||
Customer relationships | |||||
Amortized intangible assets | |||||
Gross Carrying Amount | $ 305,349 | $ 305,349 | 308,889 | ||
Accumulated Amortization | (135,198) | (135,198) | (124,648) | ||
Net Value | $ 170,151 | $ 170,151 | 184,241 | ||
Customer relationships | Weighted Average Amortization Period (Years) | |||||
Amortized intangible assets | |||||
Weighted Average Amortization Period (Years) | 13 years 7 months 6 days | 13 years 7 months 6 days | |||
Trademarks and trade names | |||||
Amortized intangible assets | |||||
Gross Carrying Amount | $ 43,078 | $ 43,078 | 43,932 | ||
Accumulated Amortization | (35,188) | (35,188) | (33,368) | ||
Net Value | $ 7,890 | $ 7,890 | 10,564 | ||
Trademarks and trade names | Weighted Average Amortization Period (Years) | |||||
Amortized intangible assets | |||||
Weighted Average Amortization Period (Years) | 8 years | 8 years | |||
License agreements and other | |||||
Amortized intangible assets | |||||
Gross Carrying Amount | $ 16,846 | $ 16,846 | 17,213 | ||
Accumulated Amortization | (7,116) | (7,116) | (6,732) | ||
Net Value | $ 9,730 | $ 9,730 | $ 10,481 | ||
License agreements and other | Weighted Average Amortization Period (Years) | |||||
Amortized intangible assets | |||||
Weighted Average Amortization Period (Years) | 32 years 8 months 12 days | 32 years 8 months 12 days |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Future Amortization Expense (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 20,276 |
2025 | 39,880 |
2026 | 37,563 |
2027 | 30,410 |
2028 | 21,174 |
Thereafter | $ 109,027 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 23.50% | 25.10% | 22.10% | 25.30% |
DEBT - Short-term Debt Obligati
DEBT - Short-term Debt Obligations (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Short-term Debt [Line Items] | ||
Notes payable, revolving credit facility and overdrafts | $ 136,320 | $ 81,794 |
Revolving credit facility 6.44% | ||
Short-term Debt [Line Items] | ||
Interest rate | 6.44% | |
Notes payable, revolving credit facility and overdrafts | $ 130,000 | 80,662 |
Overdrafts 3.08% to 6.00% | ||
Short-term Debt [Line Items] | ||
Notes payable, revolving credit facility and overdrafts | $ 6,320 | $ 1,132 |
Overdrafts 3.08% to 6.00% | Minimum | ||
Short-term Debt [Line Items] | ||
Interest rate | 3.08% | |
Overdrafts 3.08% to 6.00% | Maximum | ||
Short-term Debt [Line Items] | ||
Interest rate | 6% |
DEBT - Narrative (Details)
DEBT - Narrative (Details) € in Millions | 6 Months Ended | |||||
Jul. 02, 2024 USD ($) extension | Feb. 26, 2024 USD ($) | Jun. 30, 2024 USD ($) extension | Jun. 30, 2024 EUR (€) extension | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | |
Line of Credit Facility [Line Items] | ||||||
Short-term borrowing | $ 136,320,000 | $ 81,794,000 | ||||
Commercial Paper | ||||||
Line of Credit Facility [Line Items] | ||||||
Short-term borrowing, maximum borrowing capacity | 30,000,000 | |||||
Short-term borrowing | $ 0 | 0 | ||||
Amended Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, number of extensions | extension | 2 | 2 | ||||
Line of credit facility, duration of extension (in years) | 1 year | |||||
Line of credit facility, maximum borrowing capacity | $ 600,000,000 | |||||
Line of credit facility, increase limit | 300,000,000 | |||||
Long-term line of credit | 130,000,000 | 36,500,000 | ||||
Compensating balance, amount | 0 | |||||
Amended Revolving Credit Facility | Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Long-term line of credit | 44,200,000 | € 40 | ||||
Amended Revolving Credit Facility | Subsidiaries | ||||||
Line of Credit Facility [Line Items] | ||||||
Long-term line of credit | $ 0 | 0 | ||||
Amended Revolving Credit Facility Maturing In July 2029 | Subsequent Event | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, number of extensions | extension | 2 | |||||
Line of credit facility, duration of extension (in years) | 1 year | |||||
Line of credit facility, maximum borrowing capacity | $ 600,000,000 | |||||
Line of credit facility, increase limit | 300,000,000 | |||||
Amortizing Term Loan Matures In July 2027 | Subsequent Event | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 330,000,000 | |||||
Senior Unsecured Notes 3.49% Due In 2024 | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, repaid | $ 100,000,000 | |||||
Interest rate on notes | 3.49% | |||||
Senior unsecured notes 1.2%, due in 2024 | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate on notes | 1.20% | 1.20% | ||||
Long-term debt, gross | $ 214,000,000 | € 200 | $ 220,810,000 |
DEBT - Long-Term Obligations (D
DEBT - Long-Term Obligations (Details) $ in Thousands, € in Millions | Jun. 30, 2024 USD ($) | Jun. 30, 2024 EUR (€) | Dec. 31, 2023 USD ($) | Jul. 06, 2022 | Mar. 07, 2022 |
Components of the company's debt obligations | |||||
Finance Lease Liabilities | $ 24,376 | $ 26,478 | |||
Unamortized debt issuance costs | (3,478) | (3,816) | |||
Long-term debt and lease obligation, including current maturities | 950,931 | 1,057,614 | |||
Current maturities of long-term obligations | (269,399) | (376,426) | |||
Total long-term obligations | 681,532 | 681,188 | |||
Notes payable 0.10% – 2.25%, due in monthly and annual installments through 2030 | |||||
Components of the company's debt obligations | |||||
Long-term debt, gross | $ 16,607 | 14,988 | |||
Notes payable 0.10% – 2.25%, due in monthly and annual installments through 2030 | Minimum | |||||
Components of the company's debt obligations | |||||
Interest rate on notes | 0.10% | 0.10% | |||
Notes payable 0.10% – 2.25%, due in monthly and annual installments through 2030 | Maximum | |||||
Components of the company's debt obligations | |||||
Interest rate on notes | 2.25% | 2.25% | |||
Senior unsecured notes 3.4%, due in 2024 | |||||
Components of the company's debt obligations | |||||
Long-term debt, gross | $ 50,000 | 50,000 | |||
Interest rate on notes | 3.40% | 3.40% | |||
Senior unsecured notes 3.5%, due in 2024 | |||||
Components of the company's debt obligations | |||||
Long-term debt, gross | $ 0 | 100,000 | |||
Interest rate on notes | 3.50% | 3.50% | |||
Senior unsecured notes 1.2%, due in 2024 | |||||
Components of the company's debt obligations | |||||
Long-term debt, gross | $ 214,000 | € 200 | 220,810 | ||
Interest rate on notes | 1.20% | 1.20% | |||
Senior unsecured notes 3.6%, due in 2025 | |||||
Components of the company's debt obligations | |||||
Long-term debt, gross | $ 125,000 | 125,000 | |||
Interest rate on notes | 3.60% | 3.60% | |||
Senior unsecured notes 3.6%, due in 2026 | |||||
Components of the company's debt obligations | |||||
Long-term debt, gross | $ 125,000 | 125,000 | |||
Interest rate on notes | 3.60% | 3.60% | |||
Senior unsecured notes 3.6%, due in 2032, net of discount of $0.8 million | |||||
Components of the company's debt obligations | |||||
Long-term debt, gross | $ 399,206 | $ 399,154 | |||
Interest rate on notes | 3.60% | 3.60% | 3.60% | 3.60% | |
Debt instrument, discount | $ 800 |
DEBT - Long-Term Maturities (De
DEBT - Long-Term Maturities (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Debt Disclosure [Abstract] | |
Year One | $ 266,123 |
Year Two | 134,218 |
Year Three | 130,330 |
Year Four | 73 |
Year Five | 42 |
Thereafter | $ 399,247 |
DEBT - Covenants (Details)
DEBT - Covenants (Details) | Jun. 30, 2024 |
Line of Credit Facility [Line Items] | |
Consolidated Leverage Ratio | 1.29 |
Consolidated Interest Coverage Ratio | 16.97 |
Minimum | |
Line of Credit Facility [Line Items] | |
Consolidated Interest Coverage Ratio | 3 |
Maximum | |
Line of Credit Facility [Line Items] | |
Consolidated Leverage Ratio | 3.50 |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Components of lease expense: | ||||
Operating lease cost | $ 4,854 | $ 5,277 | $ 9,735 | $ 10,691 |
Finance lease cost: | ||||
Amortization of right-of-use assets | 1,591 | 867 | 3,261 | 1,778 |
Interest on lease liabilities | 302 | 295 | 598 | 594 |
Total finance lease cost | 1,893 | 1,162 | 3,859 | 2,372 |
Short-term lease and variable lease costs | $ 4,998 | $ 5,197 | $ 10,196 | $ 10,109 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 9,754 | $ 10,640 |
Operating cash flows from finance leases | 647 | 600 |
Financing cash flows from finance leases | 1,821 | 1,649 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 12,059 | 6,597 |
Finance leases | $ 311 | $ 352 |
RETIREMENT AND DEFERRED COMPE_3
RETIREMENT AND DEFERRED COMPENSATION PLANS - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
United States | ||||
Components of net periodic benefit cost: | ||||
Service cost | $ 2,366 | $ 2,410 | $ 4,731 | $ 4,819 |
Interest cost | 2,252 | 2,157 | 4,484 | 4,315 |
Expected return on plan assets | (3,130) | (3,095) | (6,231) | (6,189) |
Amortization of net loss | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Net periodic benefit cost | 1,488 | 1,472 | 2,984 | 2,945 |
Foreign Plans | ||||
Components of net periodic benefit cost: | ||||
Service cost | 1,603 | 1,487 | 3,233 | 2,957 |
Interest cost | 867 | 917 | 1,742 | 1,820 |
Expected return on plan assets | (558) | (589) | (1,122) | (1,169) |
Amortization of net loss | 257 | 229 | 516 | 457 |
Amortization of prior service cost | 26 | 45 | 54 | 88 |
Net periodic benefit cost | $ 2,195 | $ 2,089 | $ 4,423 | $ 4,153 |
RETIREMENT AND DEFERRED COMPE_4
RETIREMENT AND DEFERRED COMPENSATION PLANS - Narrative (Details) | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Changes in the benefit obligations and plan assets | |
Minimum funding requirements | $ 0 |
United States | |
Changes in the benefit obligations and plan assets | |
Defined benefit plan, plan assets, contributions by employer | 0 |
Foreign Plans | |
Changes in the benefit obligations and plan assets | |
Defined benefit plan, plan assets, contributions by employer | $ 700,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME - Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Accumulated other comprehensive income activity | ||
Balance at the beginning of the period | $ 2,306,824 | |
Other comprehensive income (loss) before reclassifications | (60,194) | $ 19,066 |
Amounts reclassified from accumulated other comprehensive income | 404 | 387 |
Net current-period other comprehensive income (loss) | (59,790) | 19,453 |
Balance at the end of the period | 2,396,449 | |
Accumulated Other Comprehensive Income/(Loss) | ||
Accumulated other comprehensive income activity | ||
Balance at the beginning of the period | (308,734) | (341,366) |
Balance at the end of the period | (368,524) | (321,913) |
Foreign Currency | ||
Accumulated other comprehensive income activity | ||
Balance at the beginning of the period | (280,082) | (328,740) |
Other comprehensive income (loss) before reclassifications | (65,805) | 24,129 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Net current-period other comprehensive income (loss) | (65,805) | 24,129 |
Balance at the end of the period | (345,887) | (304,611) |
Defined Benefit Pension Plans | ||
Accumulated other comprehensive income activity | ||
Balance at the beginning of the period | (11,891) | (5,951) |
Other comprehensive income (loss) before reclassifications | 102 | 68 |
Amounts reclassified from accumulated other comprehensive income | 404 | 387 |
Net current-period other comprehensive income (loss) | 506 | 455 |
Balance at the end of the period | (11,385) | (5,496) |
Derivatives | ||
Accumulated other comprehensive income activity | ||
Balance at the beginning of the period | (16,761) | (6,675) |
Other comprehensive income (loss) before reclassifications | 5,509 | (5,131) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Net current-period other comprehensive income (loss) | 5,509 | (5,131) |
Balance at the end of the period | $ (11,252) | $ (11,806) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME - Reclassifications From Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Total before tax | $ (118,246) | $ (110,878) | $ (222,564) | $ (184,147) |
Tax impact | 27,788 | 27,831 | 49,173 | 46,514 |
Total reclassifications for the period | (90,458) | (83,047) | (173,391) | (137,633) |
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Total reclassifications for the period | 201 | 195 | 404 | 387 |
Defined Benefit Pension Plans | Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Amortization of net loss | 257 | 229 | 516 | 457 |
Amortization of prior service cost | 26 | 45 | 54 | 88 |
Total before tax | 283 | 274 | 570 | 545 |
Tax impact | (82) | (79) | (166) | (158) |
Total reclassifications for the period | $ 201 | $ 195 | $ 404 | $ 387 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) $ in Thousands, € in Millions | Jul. 06, 2022 EUR (€) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jul. 06, 2022 USD ($) | Jul. 06, 2022 EUR (€) | Mar. 07, 2022 USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative Assets | $ 949 | $ 386 | ||||
Derivative Liabilities | 15,547 | 22,420 | ||||
Derivatives not Designated as Hedging Instruments | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative Assets | 949 | 386 | ||||
Derivative Liabilities | 646 | 221 | ||||
Cross Currency Swap Contract | Accounts payable, accrued and other liabilities | Derivatives not Designated as Hedging Instruments | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative Liabilities | 0 | 0 | ||||
Cross Currency Swap Contract | Net Investment Hedging | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, term of contract | 7 years | |||||
Amount hedged | $ 203,000 | € 200 | ||||
Derivative fixed interest rate | 2.5224% | 2.5224% | ||||
Derivative, annual fixed interest payments receivable | $ 3,700 | |||||
Cash flow hedge derivative instrument liability at fair value | 14,900 | |||||
Foreign Exchange Contracts | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | 73,000 | |||||
Foreign Exchange Contracts | Prepaid and other | Derivatives not Designated as Hedging Instruments | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative Assets | 949 | 386 | ||||
Foreign Exchange Contracts | Accounts payable, accrued and other liabilities | Derivatives not Designated as Hedging Instruments | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative Liabilities | $ 646 | $ 221 | ||||
Senior unsecured notes 3.6%, due in 2032, net of discount of $0.8 million | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Debt instrument, face amount | $ 400,000 | |||||
Interest rate on notes | 3.60% | 3.60% | 3.60% | 3.60% | ||
Debt instrument, periodic payment | € | € 2.5 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value of Derivative Instruments in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value of Derivative Instruments | ||
Derivative Assets | $ 949 | $ 386 |
Derivative Liabilities | 15,547 | 22,420 |
Derivatives Designated as Hedging Instruments | ||
Fair Value of Derivative Instruments | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | 14,901 | 22,199 |
Derivatives Designated as Hedging Instruments | Foreign Exchange Contracts | Prepaid and other | ||
Fair Value of Derivative Instruments | ||
Derivative Assets | 0 | 0 |
Derivatives Designated as Hedging Instruments | Foreign Exchange Contracts | Accounts payable, accrued and other liabilities | ||
Fair Value of Derivative Instruments | ||
Derivative Liabilities | 0 | 0 |
Derivatives Designated as Hedging Instruments | Cross Currency Swap Contract | Accounts payable, accrued and other liabilities | ||
Fair Value of Derivative Instruments | ||
Derivative Liabilities | 14,901 | 22,199 |
Derivatives not Designated as Hedging Instruments | ||
Fair Value of Derivative Instruments | ||
Derivative Assets | 949 | 386 |
Derivative Liabilities | 646 | 221 |
Derivatives not Designated as Hedging Instruments | Foreign Exchange Contracts | Prepaid and other | ||
Fair Value of Derivative Instruments | ||
Derivative Assets | 949 | 386 |
Derivatives not Designated as Hedging Instruments | Foreign Exchange Contracts | Accounts payable, accrued and other liabilities | ||
Fair Value of Derivative Instruments | ||
Derivative Liabilities | 646 | 221 |
Derivatives not Designated as Hedging Instruments | Cross Currency Swap Contract | Accounts payable, accrued and other liabilities | ||
Fair Value of Derivative Instruments | ||
Derivative Liabilities | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative instruments, gain or (loss) | ||||
Interest expense | $ (10,061) | $ (9,688) | $ (20,236) | $ (19,916) |
Miscellaneous expense, net | (795) | (173) | (1,654) | (1,344) |
Derivatives in Cash Flow Hedging Relationships | ||||
Derivative instruments, gain or (loss) | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative | 2,601 | 3,763 | 5,509 | (5,131) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income on Derivative | 0 | 0 | 0 | 0 |
Changes in cross currency swap: interest component | Derivatives in Cash Flow Hedging Relationships | ||||
Derivative instruments, gain or (loss) | ||||
Interest expense | (10,061) | (20,236) | ||
Changes in cross currency swap: interest component | Interest expense | Derivatives in Cash Flow Hedging Relationships | ||||
Derivative instruments, gain or (loss) | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative | 0 | 0 | 0 | 0 |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income on Derivative | 0 | 0 | 0 | 0 |
Changes in cross currency swap: foreign exchange component | Derivatives in Cash Flow Hedging Relationships | ||||
Derivative instruments, gain or (loss) | ||||
Miscellaneous expense, net | (795) | (1,654) | ||
Changes in cross currency swap: foreign exchange component | Miscellaneous, net | Derivatives in Cash Flow Hedging Relationships | ||||
Derivative instruments, gain or (loss) | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative | 2,601 | 3,763 | 5,509 | (5,131) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income on Derivative | $ 0 | $ 0 | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS AND HE_6
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Effect of Derivatives Not Designated as Hedging Instruments on the Condensed Consolidated Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of (Loss) Gain Recognized in Income on Derivatives | $ 437 | $ 59 | $ 140 | $ (800) |
Foreign Exchange Contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of (Loss) Gain Recognized in Income on Derivatives | $ 437 | $ 59 | $ 140 | $ (800) |
DERIVATIVE INSTRUMENTS AND HE_7
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative Assets | ||
Gross Amount | $ 949 | $ 386 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 949 | 386 |
Gross Amounts not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Gross Amounts not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | 0 |
Net Amount | $ 949 | $ 386 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid and other | Prepaid and other |
Derivative Liabilities | ||
Gross Amount | $ 15,547 | $ 22,420 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 15,547 | 22,420 |
Gross Amounts not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Gross Amounts not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | 0 |
Net Amount | $ 15,547 | $ 22,420 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts payable, accrued and other liabilities | Accounts payable, accrued and other liabilities |
FAIR VALUE - Fair Value of Fina
FAIR VALUE - Fair Value of Financial Assets and Liabilities (Details) - Assets and liabilities measured at fair value on recurring basis - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Investment in equity securities | $ 1,725 | $ 1,106 |
Foreign exchange contracts | 949 | 386 |
Convertible note | 5,650 | 5,650 |
Total assets at fair value | 8,324 | 7,142 |
Liabilities | ||
Foreign exchange contracts | 646 | 221 |
Cross currency swap contract | 14,901 | 22,199 |
Total liabilities at fair value | 15,547 | 22,420 |
Level 1 | ||
Assets | ||
Investment in equity securities | 1,725 | 1,106 |
Foreign exchange contracts | 0 | 0 |
Convertible note | 0 | 0 |
Total assets at fair value | 1,725 | 1,106 |
Liabilities | ||
Foreign exchange contracts | 0 | 0 |
Cross currency swap contract | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Level 2 | ||
Assets | ||
Investment in equity securities | 0 | 0 |
Foreign exchange contracts | 949 | 386 |
Convertible note | 0 | 0 |
Total assets at fair value | 949 | 386 |
Liabilities | ||
Foreign exchange contracts | 646 | 221 |
Cross currency swap contract | 14,901 | 22,199 |
Total liabilities at fair value | 15,547 | 22,420 |
Level 3 | ||
Assets | ||
Investment in equity securities | 0 | 0 |
Foreign exchange contracts | 0 | 0 |
Convertible note | 5,650 | 5,650 |
Total assets at fair value | 5,650 | 5,650 |
Liabilities | ||
Foreign exchange contracts | 0 | 0 |
Cross currency swap contract | 0 | 0 |
Total liabilities at fair value | $ 0 | $ 0 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value Disclosures [Abstract] | ||
Fair value of long-term obligations | $ 614.5 | $ 620.7 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Indemnification agreements | ||
Commitments and contingencies | ||
Liabilities recorded under indemnification agreements | $ 0 | $ 0 |
Tax Assessment | ||
Commitments and contingencies | ||
Loss contingency estimate of possible loss | 13,000,000 | |
Loss contingency liability recorded | 0 | |
Tax Assessment, Interest and Penalties | Minimum | ||
Commitments and contingencies | ||
Loss contingency estimate of possible loss | 5,000,000 | |
Tax Assessment, Interest and Penalties | Maximum | ||
Commitments and contingencies | ||
Loss contingency estimate of possible loss | $ 6,000,000 |
STOCK REPURCHASE PROGRAM (Detai
STOCK REPURCHASE PROGRAM (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Apr. 18, 2019 | |
Stock repurchase program | |||||
Common stock repurchased (retired and held in treasury) (in shares) | 34 | 81 | 120 | 252 | |
Common stock repurchased (retired and held in treasury) | $ 5.1 | $ 9.3 | $ 17.1 | $ 29 | |
Remaining authorized repurchase amount | $ 43.5 | $ 43.5 | |||
Stock Repurchase Program April 18, 2019 | |||||
Stock repurchase program | |||||
Share repurchases authorized amount | $ 350 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Weighted average fair value of stock options granted (in dollars per share) | $ 36.07 | |
Proceeds from stock option exercises | $ 27,797 | $ 24,342 |
Executive Officer | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Weighted average fair value of stock options granted (in dollars per share) | $ 19.84 | |
Received stock options exercise price percentage | 110% | |
Non Executive Officer Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Weighted average fair value of stock options granted (in dollars per share) | $ 24.23 | |
Time-Based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Vesting period (in years) | 3 years | |
RSU's granted (in shares) | 117,660 | |
RSUs vested (in shares) | 173,168 | |
Time-Based RSUs | Director Stock Option Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
RSU's granted (in shares) | 10,208 | |
RSUs vested (in shares) | 11,508 | |
Performance-Based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Vesting period (in years) | 3 years | |
RSU's granted (in shares) | 129,614 | |
RSUs vested (in shares) | 97,794 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Tax benefit | $ 7,100 | $ 5,400 |
Unrecognized compensation expense | $ 53,300 | |
Weighted-average period cost will be recognized over | 2 years | |
Options | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Vesting period (in years) | 3 years | |
Tax benefit | $ 6,200 | 4,300 |
Unrecognized compensation expense | $ 6,000 | |
Weighted-average period cost will be recognized over | 2 years 3 months 18 days | |
Expiration period (in years) | 10 years | |
Proceeds from stock option exercises | $ 27,800 | $ 24,300 |
STOCK-BASED COMPENSATION - Assu
STOCK-BASED COMPENSATION - Assumptions Used (Details) - Performance-Based RSUs - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Fair value per stock award (in dollars per share) | $ 145.79 | $ 116.17 |
Grant date stock price (in dollars per share) | $ 141 | $ 111.38 |
Aptar's stock price expected volatility | 18.80% | 20% |
Expected average volatility of peer companies | 34.80% | 39.70% |
Correlation assumption | 30.70% | 33.30% |
Risk-free interest rate | 4.51% | 3.83% |
Dividend yield assumption | 1.16% | 1.36% |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock Unit Activity (Details) | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Time-Based RSUs | |
Units | |
Nonvested outstanding beginning balance (in shares) | shares | 335,874 |
Granted (in shares) | shares | 117,660 |
Vested (in shares) | shares | (173,168) |
Forfeited (in shares) | shares | (2,352) |
Nonvested outstanding ending balance (in shares) | shares | 278,014 |
Weighted Average Grant-Date Fair Value | |
Outstanding, Weighted average grant date fair value begging balance (in dollars per share) | $ / shares | $ 115.15 |
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares | 136.61 |
Vested, Weighted average grant date fair value (in dollars per share) | $ / shares | 119.27 |
Forfeited, Weighted average grant date fair value (in dollars per share) | $ / shares | 117.67 |
Outstanding, Weighted average grant date fair value ending balance (in dollars per share) | $ / shares | $ 121.51 |
Performance-Based RSUs | |
Units | |
Nonvested outstanding beginning balance (in shares) | shares | 514,383 |
Granted (in shares) | shares | 129,614 |
Vested (in shares) | shares | (97,794) |
Forfeited (in shares) | shares | (26,886) |
Nonvested outstanding ending balance (in shares) | shares | 519,317 |
Weighted Average Grant-Date Fair Value | |
Outstanding, Weighted average grant date fair value begging balance (in dollars per share) | $ / shares | $ 130.10 |
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares | 145.79 |
Vested, Weighted average grant date fair value (in dollars per share) | $ / shares | 162.33 |
Forfeited, Weighted average grant date fair value (in dollars per share) | $ / shares | 146.76 |
Outstanding, Weighted average grant date fair value ending balance (in dollars per share) | $ / shares | $ 127.13 |
STOCK-BASED COMPENSATION - Comp
STOCK-BASED COMPENSATION - Compensation Expense (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Compensation expense | $ 21,966 | $ 22,008 |
Fair value of units vested | 34,991 | 27,178 |
Intrinsic value of units vested | 38,040 | 31,809 |
Options | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Compensation expense | 4,868 | 3,425 |
Compensation expense, net of tax | 5,272 | 3,425 |
Grant date fair value of options vested | 2,306 | 0 |
Options | Compensation expense (included in SG&A) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Compensation expense | 4,376 | 3,147 |
Options | Compensation expense (included in Cost of sales) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Compensation expense | $ 492 | $ 278 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Option Activity (Details) - Options - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Stock Awards Plans | ||
Assumptions used to estimate fair value of stock options granted | ||
Dividend yield assumption | 1.28% | 1.41% |
Expected Stock Price Volatility | 17.03% | 16.55% |
Risk-free interest rate | 4.51% | 3.57% |
Expected Life of Option (years) | 7 years | 7 years |
Stock options activity | ||
Outstanding at the beginning of the period (in shares) | 2,182,784 | |
Granted (in shares) | 249,805 | |
Exercised (in shares) | (377,602) | |
Forfeited or expired (in shares) | (5,185) | |
Outstanding at the end of the period (in shares) | 2,049,802 | |
Stock option weighted average exercise price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 80.63 | |
Options granted, Weighted average exercise price (in dollars per share) | 141 | |
Options exercised, Weighted average exercise price (in dollars per share) | 70.66 | |
Options forfeited or expired, Weighted average exercise price (in dollars per share) | 93.42 | |
Outstanding at the end of the period (in dollars per share) | $ 89.80 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Options exercisable, Number of options (in shares) | 1,593,918 | |
Options exercisable, Weighted average exercise price (in dollars per share) | $ 78.35 | |
Options outstanding, Weighted average remaining contractual term (in years) | 4 years 2 months 12 days | |
Options exercisable, Weighted average remaining contractual term (in years) | 2 years 8 months 12 days | |
Options outstanding, Aggregate intrinsic value | $ 110,862 | |
Options exercisable, Aggregate intrinsic value | 104,452 | |
Options exercised, Intrinsic value, at end of period | $ 25,454 | $ 16,886 |
Director Stock Option Plans | ||
Stock options activity | ||
Outstanding at the beginning of the period (in shares) | 19,000 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (19,000) | |
Forfeited or expired (in shares) | 0 | |
Outstanding at the end of the period (in shares) | 0 | |
Stock option weighted average exercise price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 66.59 | |
Options granted, Weighted average exercise price (in dollars per share) | 0 | |
Options exercised, Weighted average exercise price (in dollars per share) | 66.59 | |
Options forfeited or expired, Weighted average exercise price (in dollars per share) | 0 | |
Outstanding at the end of the period (in dollars per share) | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Options exercisable, Number of options (in shares) | 0 | |
Options exercisable, Weighted average exercise price (in dollars per share) | $ 0 | |
Options outstanding, Weighted average remaining contractual term (in years) | 0 years | |
Options exercisable, Weighted average remaining contractual term (in years) | 0 years | |
Options outstanding, Aggregate intrinsic value | $ 0 | |
Options exercisable, Aggregate intrinsic value | 0 | |
Options exercised, Intrinsic value, at end of period | $ 1,394 | $ 854 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Consolidated operations | ||||
Income available to common stockholders, diluted | $ 90,454 | $ 83,072 | $ 173,558 | $ 137,836 |
Income available to common stockholders, basic | $ 90,454 | $ 83,072 | $ 173,558 | $ 137,836 |
Average equivalent shares (in Shares) | ||||
Basic (in shares) | 66,312 | 65,568 | 66,188 | 65,470 |
Effect of dilutive stock-based compensation | ||||
Diluted (in shares) | 67,575 | 66,855 | 67,509 | 66,748 |
Net income per share | ||||
Net income per share, diluted (in dollars per share) | $ 1.34 | $ 1.24 | $ 2.57 | $ 2.07 |
Net income per share, basic (in dollars per share) | $ 1.36 | $ 1.27 | $ 2.62 | $ 2.11 |
Stock options | ||||
Effect of dilutive stock-based compensation | ||||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 774 | 871 | 783 | 889 |
Restricted stock | ||||
Effect of dilutive stock-based compensation | ||||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 489 | 416 | 538 | 389 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Reportable Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) segment | Jun. 30, 2023 USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 3 | |||
Financial information regarding the Company's reportable segments | ||||
Net Sales | $ 910,063 | $ 895,906 | $ 1,825,511 | $ 1,755,973 |
Acquisition-related costs | (140) | 0 | (140) | (255) |
Restructuring Initiatives | (2,315) | (1,943) | (5,795) | (13,467) |
Net unrealized investment (loss) gain | (140) | 2,891 | 452 | 3,079 |
Depreciation and amortization | (64,968) | (62,267) | (129,317) | (121,526) |
Interest Expense | (10,061) | (9,688) | (20,236) | (19,916) |
Interest Income | 3,102 | 648 | 6,000 | 1,320 |
Income before Income Taxes | 118,246 | 110,878 | 222,564 | 184,147 |
Optimization initiative | ||||
Financial information regarding the Company's reportable segments | ||||
Restructuring Initiatives | (2,315) | (1,943) | (5,812) | (13,483) |
Prior year initiatives | ||||
Financial information regarding the Company's reportable segments | ||||
Restructuring Initiatives | 0 | 0 | 17 | 16 |
Aptar Pharma | ||||
Financial information regarding the Company's reportable segments | ||||
Net Sales | 414,533 | 390,700 | 821,826 | 746,746 |
Aptar Beauty | ||||
Financial information regarding the Company's reportable segments | ||||
Net Sales | 321,487 | 329,587 | 648,807 | 655,976 |
Aptar Closures | ||||
Financial information regarding the Company's reportable segments | ||||
Net Sales | 174,043 | 175,619 | 354,878 | 353,251 |
Operating segment | ||||
Financial information regarding the Company's reportable segments | ||||
Net Sales | 920,464 | 906,885 | 1,845,531 | 1,776,773 |
Operating segment | Aptar Pharma | ||||
Financial information regarding the Company's reportable segments | ||||
Net Sales | 414,783 | 391,010 | 822,273 | 747,121 |
Adjusted EBITDA | 141,488 | 125,866 | 273,666 | 235,164 |
Restructuring Initiatives | (65) | (434) | (89) | (1,565) |
Operating segment | Aptar Beauty | ||||
Financial information regarding the Company's reportable segments | ||||
Net Sales | 328,700 | 338,404 | 663,580 | 671,742 |
Adjusted EBITDA | 44,638 | 43,100 | 85,772 | 80,305 |
Restructuring Initiatives | (1,199) | (479) | (3,909) | (9,770) |
Operating segment | Aptar Closures | ||||
Financial information regarding the Company's reportable segments | ||||
Net Sales | 176,981 | 177,471 | 359,678 | 357,910 |
Adjusted EBITDA | 27,118 | 27,772 | 54,279 | 53,780 |
Restructuring Initiatives | (893) | (440) | (1,653) | (962) |
Intersegment | ||||
Financial information regarding the Company's reportable segments | ||||
Net Sales | 10,401 | 10,979 | 20,020 | 20,800 |
Intersegment | Aptar Pharma | ||||
Financial information regarding the Company's reportable segments | ||||
Net Sales | 250 | 310 | 447 | 375 |
Intersegment | Aptar Beauty | ||||
Financial information regarding the Company's reportable segments | ||||
Net Sales | 7,213 | 8,817 | 14,773 | 15,766 |
Intersegment | Aptar Closures | ||||
Financial information regarding the Company's reportable segments | ||||
Net Sales | 2,938 | 1,852 | 4,800 | 4,659 |
Corporate & Other, unallocated | ||||
Financial information regarding the Company's reportable segments | ||||
Adjusted EBITDA | (20,476) | (15,501) | (42,117) | (34,337) |
Restructuring Initiatives | $ (158) | $ (590) | $ (144) | $ (1,170) |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Mar. 01, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Acquisitions | |||
Acquisition of businesses, net of cash acquired and release of escrow | $ 0 | $ 10,910 | |
iD SCENT | |||
Acquisitions | |||
Acquisition of businesses, net of cash acquired and release of escrow | $ 9,400 | ||
Cash acquired | 1,400 | ||
Gulf Closures | |||
Acquisitions | |||
Acquisition of businesses, net of cash acquired and release of escrow | 1,500 | ||
Cash acquired | $ 1,200 | ||
Percentage of interest acquired | 80% | ||
Valuation of full company equity of acquired company | $ 3,300 | ||
Non-controlling interest value | $ 700 |
INVESTMENT IN EQUITY SECURITI_3
INVESTMENT IN EQUITY SECURITIES - Schedule of Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Total equity method investments and other investments | $ 48,527 | $ 49,203 |
BTY | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments: | 32,124 | 33,090 |
Sonmol | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments: | 4,546 | 4,751 |
Desotec GmbH | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments: | 940 | 905 |
PureCycle | ||
Schedule of Equity Method Investments [Line Items] | ||
Other Investments: | 1,725 | 1,106 |
YAT | ||
Schedule of Equity Method Investments [Line Items] | ||
Other Investments: | 5,229 | 5,352 |
Loop | ||
Schedule of Equity Method Investments [Line Items] | ||
Other Investments: | 2,894 | 2,894 |
Others | ||
Schedule of Equity Method Investments [Line Items] | ||
Other Investments: | $ 1,069 | $ 1,105 |
INVESTMENT IN EQUITY SECURITI_4
INVESTMENT IN EQUITY SECURITIES - Narrative (Details) € in Thousands | 6 Months Ended | 12 Months Ended | 27 Months Ended | 60 Months Ended | ||||||
Apr. 26, 2024 USD ($) | Dec. 10, 2023 USD ($) | Jul. 07, 2021 USD ($) | Apr. 01, 2020 USD ($) | Jan. 01, 2020 USD ($) company | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2009 EUR (€) | Mar. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Investment impairment | $ 0 | $ 0 | ||||||||
Jinyu | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Ownership percentage of equity method investment | 40% | |||||||||
Investment in equity securities | $ 84,000,000 | |||||||||
BTY | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Ownership percentage of equity method investment | 49% | |||||||||
Investment in equity securities | $ 32,000,000 | |||||||||
Number of related companies | company | 3 | |||||||||
Initial lock-up period (in years) | 5 years | |||||||||
Second lock-up period (in years) | 3 years | |||||||||
Purchases from related party | 5,800,000 | $ 7,600,000 | ||||||||
Accounts payable and other accrued liabilities | $ 2,400,000 | $ 1,800,000 | ||||||||
BTY | Call Option | Minimum | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Ownership percentage of equity method investment | 26% | |||||||||
BTY | Call Option | Maximum | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Ownership percentage of equity method investment | 31% | |||||||||
Sonmol | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Ownership percentage of equity method investment | 30% | |||||||||
Investment in equity securities | $ 5,000,000 | |||||||||
Desotec GmbH | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Ownership percentage of equity method investment | 23% | |||||||||
Investment in equity securities | € | € 574 | |||||||||
Loop | Preferred stock | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Investment in equity securities | $ 2,900,000 | |||||||||
PureCycle | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Investment ownership percentage | 0.01 | |||||||||
PureCycle | Preferred stock | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Investment in equity securities | $ 3,000,000 | |||||||||
Equity received in exchange for services | $ 200,000 | $ 700,000 | ||||||||
YAT | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Investment in equity securities | $ 5,900,000 | |||||||||
Investment ownership percentage | 0.10 |
INVESTMENT IN EQUITY SECURITI_5
INVESTMENT IN EQUITY SECURITIES - Purecycle Investment (Details) - PureCycle - Preferred stock - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Shares Sold (in shares) | 510,449 | 157,600 | 191,349 |
Proceeds | $ 5,604 | $ 1,599 | $ 2,434 |
Realized Gain | $ 4,188 | $ 1,213 | $ 2,000 |
INVESTMENT IN EQUITY SECURITI_6
INVESTMENT IN EQUITY SECURITIES - Net Investment Gain/Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||||
Net investment (loss) gain | $ (140) | $ 2,891 | $ 452 | $ 3,079 |
PureCycle | Preferred stock | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net investment (loss) gain | $ (140) | $ 2,891 | $ 452 | $ 3,079 |
RESTRUCTURING INITIATIVES - Nar
RESTRUCTURING INITIATIVES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring initiatives | $ 2,315 | $ 1,943 | $ 5,795 | $ 13,467 |
Optimization Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring initiatives | 2,300 | $ 1,900 | 5,812 | $ 13,500 |
Cumulative expense incurred | $ 57,500 | $ 57,500 |
RESTRUCTURING INITIATIVES - Act
RESTRUCTURING INITIATIVES - Activity associated with optimization initiative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring reserve | ||||
Net Charges | $ 2,315 | $ 1,943 | $ 5,795 | $ 13,467 |
Optimization Plan | ||||
Restructuring reserve | ||||
Restructuring reserve, balance at the beginning of the period | 29,888 | |||
Net Charges | 2,300 | $ 1,900 | 5,812 | $ 13,500 |
Cash Paid | (11,582) | |||
Interest and FX Impact | (326) | |||
Restructuring reserve, balance at the end of the period | 23,792 | 23,792 | ||
Employee severance | Optimization Plan | ||||
Restructuring reserve | ||||
Restructuring reserve, balance at the beginning of the period | 27,078 | |||
Net Charges | 2,890 | |||
Cash Paid | (9,179) | |||
Interest and FX Impact | (311) | |||
Restructuring reserve, balance at the end of the period | 20,478 | 20,478 | ||
Professional fees and other costs | Optimization Plan | ||||
Restructuring reserve | ||||
Restructuring reserve, balance at the beginning of the period | 2,810 | |||
Net Charges | 2,922 | |||
Cash Paid | (2,403) | |||
Interest and FX Impact | (15) | |||
Restructuring reserve, balance at the end of the period | $ 3,314 | $ 3,314 |