Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 29, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'APTARGROUP INC | ' |
Entity Central Index Key | '0000896622 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 65,853,245 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ' | ' | ' | ' |
Net Sales | $623,644 | $589,598 | $1,882,718 | $1,759,599 |
Operating Expenses: | ' | ' | ' | ' |
Cost of sales (exclusive of depreciation and amortization shown below) | 424,011 | 407,368 | 1,273,848 | 1,198,663 |
Selling, research & development and administrative | 86,917 | 80,094 | 269,335 | 256,433 |
Depreciation and amortization | 37,222 | 35,248 | 112,007 | 100,399 |
Restructuring initiatives | 2,180 | ' | 8,758 | -215 |
Total Operating Expenses | 550,330 | 522,710 | 1,663,948 | 1,555,280 |
Operating Income | 73,314 | 66,888 | 218,770 | 204,319 |
Other Income (Expense): | ' | ' | ' | ' |
Interest expense | -4,841 | -4,721 | -15,364 | -13,867 |
Interest income | 576 | 335 | 2,271 | 2,157 |
Equity results of affiliates | -286 | -229 | -609 | -518 |
Miscellaneous, net | -437 | 753 | -1,070 | -247 |
Total Other Income (Expense) | -4,988 | -3,862 | -14,772 | -12,475 |
Income before Income Taxes | 68,326 | 63,026 | 203,998 | 191,844 |
Provision for Income Taxes | 23,094 | 20,925 | 68,908 | 64,278 |
Net Income | 45,232 | 42,101 | 135,090 | 127,566 |
Net Loss Attributable to Noncontrolling Interests | 32 | 26 | 5 | 56 |
Net Income Attributable to AptarGroup, Inc. | $45,264 | $42,127 | $135,095 | $127,622 |
Net Income Attributable to AptarGroup, Inc. per Common Share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.68 | $0.63 | $2.04 | $1.92 |
Diluted (in dollars per share) | $0.67 | $0.62 | $1.98 | $1.86 |
Average Number of Shares Outstanding: | ' | ' | ' | ' |
Basic (in shares) | 66,092 | 66,541 | 66,222 | 66,439 |
Diluted (in shares) | 67,986 | 68,353 | 68,273 | 68,711 |
Dividends per Common Share (in dollars per share) | $0.25 | $0.22 | $0.75 | $0.66 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/ (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/ (LOSS) | ' | ' | ' | ' |
Net Income | $45,232 | $42,101 | $135,090 | $127,566 |
Other Comprehensive Income/(Loss): | ' | ' | ' | ' |
Foreign currency translation adjustments | 45,344 | 19,027 | 16,282 | -9,795 |
Changes in treasury locks, net of tax | 9 | 14 | 39 | 194 |
Net loss on derivatives, net of tax | ' | ' | ' | -7 |
Defined benefit pension plan, net of tax | ' | ' | ' | ' |
Amortization of prior service cost included in net income, net of tax | 61 | 59 | 183 | 180 |
Amortization of net loss included in net income, net of tax | 1,039 | 683 | 3,111 | 2,054 |
Total defined benefit pension plan, net of tax | 1,100 | 742 | 3,294 | 2,234 |
Total other comprehensive income/(loss) | 46,453 | 19,783 | 19,615 | -7,374 |
Comprehensive Income | 91,685 | 61,884 | 154,705 | 120,192 |
Comprehensive Loss/(Income) Attributable To Noncontrolling Interests | 30 | 21 | -2 | 56 |
Comprehensive Income Attributable to AptarGroup, Inc. | $91,715 | $61,905 | $154,703 | $120,248 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and equivalents | $247,851 | $229,755 |
Accounts and notes receivable, less allowance for doubtful accounts of $4,780 in 2013 and $6,751 in 2012 | 439,016 | 396,788 |
Inventories | 349,690 | 321,885 |
Prepaid and other | 109,091 | 90,505 |
Total Current Assets | 1,145,648 | 1,038,933 |
Property, Plant and Equipment: | ' | ' |
Buildings and improvements | 378,451 | 364,704 |
Machinery and equipment | 1,941,744 | 1,857,347 |
Property, Plant and Equipment, Gross | 2,320,195 | 2,222,051 |
Less: Accumulated depreciation | -1,486,234 | -1,397,575 |
Property, Plant and Equipment, Net | 833,961 | 824,476 |
Land | 23,872 | 23,757 |
Total Property, Plant and Equipment | 857,833 | 848,233 |
Other Assets: | ' | ' |
Investments in affiliates | 3,177 | 3,693 |
Goodwill | 355,316 | 351,552 |
Intangible assets, net | 49,757 | 51,960 |
Miscellaneous | 16,641 | 30,041 |
Total Other Assets | 424,891 | 437,246 |
Total Assets | 2,428,372 | 2,324,412 |
Current Liabilities: | ' | ' |
Notes payable | 76,811 | 45,166 |
Current maturities of long-term obligations | 899 | 29,488 |
Accounts payable and accrued liabilities | 402,632 | 380,669 |
Total Current Liabilities | 480,342 | 455,323 |
Long-Term Obligations | 355,185 | 352,860 |
Deferred Liabilities and Other: | ' | ' |
Deferred income taxes | 30,393 | 33,451 |
Retirement and deferred compensation plans | 95,031 | 95,872 |
Deferred and other non-current liabilities | 6,578 | 6,408 |
Commitments and contingencies | ' | ' |
Total Deferred Liabilities and Other | 132,002 | 135,731 |
AptarGroup, Inc. stockholders' equity | ' | ' |
Preferred stock, $.01 par value, 1 million shares authorized, none outstanding | ' | ' |
Common stock, $.01 par value, 199 million shares authorized; 85.2 and 84.1 million shares issued as of September 30, 2013 and December 31, 2012, respectively | 852 | 840 |
Capital in excess of par value | 485,733 | 430,210 |
Retained earnings | 1,598,979 | 1,513,558 |
Accumulated other comprehensive income | 80,291 | 60,683 |
Less treasury stock at cost, 19.4 and 18.2 million shares as of September 30, 2013 and December 31, 2012, respectively | -705,622 | -625,401 |
Total AptarGroup, Inc. Stockholders' Equity | 1,460,233 | 1,379,890 |
Noncontrolling interests in subsidiaries | 610 | 608 |
Total Stockholders' Equity | 1,460,843 | 1,380,498 |
Total Liabilities and Stockholders' Equity | $2,428,372 | $2,324,412 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data in Millions, unless otherwise specified | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' |
Accounts and notes receivable, allowance for doubtful accounts (in dollars) | $4,780 | $6,751 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 1 | 1 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 199 | 199 |
Common stock, shares issued | 85.2 | 84.1 |
Treasury stock, shares | 19.4 | 18.2 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Common Stock Par Value | Treasury Stock | Capital in Excess of Par Value | Non-Controlling Interest |
In Thousands, unless otherwise specified | |||||||
Balance at Dec. 31, 2011 | $1,290,572 | $1,409,388 | $60,318 | $827 | ($545,612) | $364,855 | $796 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 127,566 | 127,622 | ' | ' | ' | ' | -56 |
Foreign currency translation adjustments | -9,795 | ' | -9,795 | ' | ' | ' | ' |
Changes in unrecognized pension gains/losses and related amortization, net of tax | 2,234 | ' | 2,234 | ' | ' | ' | ' |
Changes in treasury locks, net of tax | 194 | ' | 194 | ' | ' | ' | ' |
Net loss on derivatives, net of tax | -7 | ' | -7 | ' | ' | ' | ' |
Stock option exercises & restricted stock vestings | 52,248 | ' | ' | 10 | 3 | 52,235 | ' |
Cash dividends declared on common stock | -43,830 | -43,830 | ' | ' | ' | ' | ' |
Treasury stock purchased | -40,896 | ' | ' | ' | -40,896 | ' | ' |
Balance at Sep. 30, 2012 | 1,378,286 | 1,493,180 | 52,944 | 837 | -586,505 | 417,090 | 740 |
Balance at Dec. 31, 2012 | 1,380,498 | 1,513,558 | 60,683 | 840 | -625,401 | 430,210 | 608 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 135,090 | 135,095 | ' | ' | ' | ' | -5 |
Foreign currency translation adjustments | 16,282 | ' | 16,275 | ' | ' | ' | 7 |
Changes in unrecognized pension gains/losses and related amortization, net of tax | 3,294 | ' | 3,294 | ' | ' | ' | ' |
Changes in treasury locks, net of tax | 39 | ' | 39 | ' | ' | ' | ' |
Stock option exercises & restricted stock vestings | 55,536 | ' | ' | 12 | 1 | 55,523 | ' |
Cash dividends declared on common stock | -49,674 | -49,674 | ' | ' | ' | ' | ' |
Treasury stock purchased | -80,222 | ' | ' | ' | -80,222 | ' | ' |
Balance at Sep. 30, 2013 | $1,460,843 | $1,598,979 | $80,291 | $852 | ($705,622) | $485,733 | $610 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows from Operating Activities: | ' | ' |
Net income | $135,090 | $127,566 |
Adjustments to reconcile net income to net cash provided by operations: | ' | ' |
Depreciation | 108,259 | 98,501 |
Amortization | 3,748 | 1,898 |
Stock based compensation | 11,538 | 10,773 |
Provision for doubtful accounts | -516 | -327 |
Deferred income taxes | -5,612 | -3,644 |
Defined benefit plan expense | 14,531 | 10,855 |
Equity in results of affiliates in excess of cash distributions received | 609 | 518 |
Changes in balance sheet items, excluding effects from foreign currency adjustments: | ' | ' |
Accounts receivable | -42,531 | -14,365 |
Inventories | -27,168 | -11,819 |
Prepaid and other current assets | -15,416 | 6,342 |
Accounts payable and accrued liabilities | 8,544 | -2,963 |
Income taxes payable | 10,312 | 4,716 |
Retirement and deferred compensation plans | -18,717 | -19,260 |
Other changes, net | 11,850 | -11,273 |
Net Cash Provided by Operations | 194,521 | 197,518 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | -110,350 | -133,016 |
Disposition of property and equipment | 2,207 | 2,430 |
Acquisition of business, net of cash acquired | ' | -187,840 |
Investment in unconsolidated affiliate | -13 | -279 |
Notes receivable, net | -159 | 7 |
Net Cash Used by Investing Activities | -108,315 | -318,698 |
Cash Flows from Financing Activities: | ' | ' |
Proceeds/(Repayments) from notes payable | 31,908 | -166,911 |
Proceeds from long-term obligations | ' | 125,029 |
Repayments of long-term obligations | -25,491 | ' |
Dividends paid | -49,674 | -43,830 |
Credit facility costs | -498 | -1,470 |
Proceeds from stock option exercises | 38,368 | 35,239 |
Purchase of treasury stock | -80,222 | -40,896 |
Excess tax benefit from exercise of stock options | 5,058 | 6,006 |
Net Cash Used by Financing Activities | -80,551 | -86,833 |
Effect of Exchange Rate Changes on Cash | 12,441 | 4,684 |
Net Increase/(Decrease) in Cash and Equivalents | 18,096 | -203,329 |
Cash and Equivalents at Beginning of Period | 229,755 | 377,616 |
Cash and Equivalents at End of Period | $247,851 | $174,287 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION | |
The accompanying unaudited condensed consolidated financial statements include the accounts of AptarGroup, Inc. and its subsidiaries. The terms “AptarGroup” or “Company” as used herein refer to AptarGroup, Inc. and its 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 include all adjustments, consisting of only 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 unaudited 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 disclosure normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes 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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 but does not include all disclosures required by accounting principles generally accepted in the United States of America. Accordingly, these unaudited condensed consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. 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 PRONOUNCEMENTS | |
Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates to the FASB’s Accounting Standards Codification. | |
In February 2013, the FASB issued authoritative guidance that amends the presentation of accumulated other comprehensive income and clarifies how to report the effect of significant reclassifications out of accumulated other comprehensive income. The guidance requires footnote disclosures regarding the changes in accumulated other comprehensive income by component and the line items affected in the statements of earnings. The adoption of this standard had no impact on the Condensed Consolidated Financial Statements other than disclosure. Additional information can be found in Note 5 of the Notes to the Condensed Consolidated Financial Statements. | |
In January 2013, the FASB issued authoritative guidance requiring new asset and liability offsetting disclosures for derivatives, repurchase agreements and security lending transactions to the extent that they are offset in the financial statements or are subject to an enforceable master netting arrangement or similar agreement. We do not have any repurchase agreements and do not participate in securities lending transactions. Our derivative instruments are not offset in the financial statements. Accordingly, the adoption of this standard had no impact on the Condensed Consolidated Financial Statements other than disclosure. Additional information can be found in Note 6 of the Notes to the Condensed Consolidated Financial Statements. | |
INCOME TAXES | |
The Company computes taxes on income in accordance with the tax rules and regulations of the many taxing authorities where the income is earned. The income tax rates imposed by these taxing authorities may vary substantially. Taxable income may differ from pretax income for financial accounting purposes. To the extent that these differences create differences between the tax basis of an asset or liability and its reported amount in the financial statements, an appropriate provision for deferred income taxes is made. | |
In its determination of which foreign earnings are permanently reinvested in foreign operations, the Company considers numerous factors, including the financial requirements of the U.S. parent company and those of its foreign subsidiaries, the U.S. funding needs for dividend payments and stock repurchases, and the tax consequences of remitting earnings to the U.S. From this analysis, current year repatriation decisions are made in an attempt to provide a proper mix of debt and shareholder capital both within the U.S. and for non-U.S. operations. The Company’s policy is to permanently reinvest its accumulated foreign earnings and only will make a distribution out of current year earnings to meet the cash needs at the parent company. As such, the Company does not provide taxes on earnings that are deemed to be permanently reinvested. The effective tax rate for 2013 includes the tax cost of repatriating $77 million of current year earnings, all of which was repatriated in the first half of 2013. | |
The Company provides a liability for the amount of tax benefits realized from uncertain tax positions. This liability is provided whenever the Company determines that a tax benefit will not meet a more-likely-than-not threshold for recognition. See Note 13 of the Notes to the Condensed Consolidated Financial Statements for more information. |
INVENTORIES
INVENTORIES | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
INVENTORIES | ' | |||||||
INVENTORIES | ' | |||||||
NOTE 2 - INVENTORIES | ||||||||
At September 30, 2013 and December 31, 2012, approximately 19% of the total inventories are accounted for by using the LIFO method. Inventories, by component, consisted of: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 113,673 | $ | 125,889 | ||||
Work in process | 109,062 | 75,261 | ||||||
Finished goods | 134,575 | 127,393 | ||||||
Total | 357,310 | 328,543 | ||||||
Less LIFO Reserve | (7,620 | ) | (6,658 | ) | ||||
Total | $ | 349,690 | $ | 321,885 | ||||
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | |||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | |||||||||||||||||||||
NOTE 3 – GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||||||||
The changes in the carrying amount of goodwill since the year ended December 31, 2012 are as follows by reporting segment: | ||||||||||||||||||||||
Beauty + | Food + | Corporate | ||||||||||||||||||||
Home | Pharma | Beverage | & Other | Total | ||||||||||||||||||
Goodwill | $ | 179,890 | $ | 153,978 | $ | 17,684 | $ | 1,615 | $ | 353,167 | ||||||||||||
Accumulated impairment losses | -- | -- | -- | (1,615 | ) | (1,615 | ) | |||||||||||||||
Balance as of December 31, 2012 | $ | 179,890 | $ | 153,978 | $ | 17,684 | $ | -- | $ | 351,552 | ||||||||||||
Acquisition | -- | -- | -- | -- | -- | |||||||||||||||||
Foreign currency exchange effects | 66 | 3,560 | 138 | -- | 3,764 | |||||||||||||||||
Goodwill | $ | 179,956 | $ | 157,538 | $ | 17,822 | $ | 1,615 | $ | 356,931 | ||||||||||||
Accumulated impairment losses | -- | -- | -- | (1,615 | ) | (1,615 | ) | |||||||||||||||
Balance as of September 30, 2013 | $ | 179,956 | $ | 157,538 | $ | 17,822 | $ | -- | $ | 355,316 | ||||||||||||
The table below shows a summary of intangible assets as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||
Weighted Average | Gross | Gross | ||||||||||||||||||||
Amortization | Carrying | Accumulated | Net | Carrying | Accumulated | Net | ||||||||||||||||
Period (Years) | Amount | Amortization | Value | Amount | Amortization | Value | ||||||||||||||||
Amortized intangible assets: | ||||||||||||||||||||||
Patents | 7 | $ | 20,033 | $ | (19,542 | ) | $ | 491 | $ | 19,570 | $ | (18,894 | ) | $ | 676 | |||||||
Acquired technology | 15 | 39,906 | (3,325 | ) | 36,581 | 38,928 | (1,298 | ) | 37,630 | |||||||||||||
License agreements and other | 5 | 36,089 | (23,404 | ) | 12,685 | 35,780 | (22,126 | ) | 13,654 | |||||||||||||
Total intangible assets | 10 | $ | 96,028 | $ | (46,271 | ) | $ | 49,757 | $ | 94,278 | $ | (42,318 | ) | $ | 51,960 | |||||||
Aggregate amortization expense for the intangible assets above for the quarters ended September 30, 2013 and 2012 was $1,266 and $1,232, respectively. Aggregate amortization expense for the intangible assets above for the nine months ended September 30, 2013 and 2012 was $3,748 and $1,898, respectively. | ||||||||||||||||||||||
Future estimated amortization expense for the years ending December 31 is as follows: | ||||||||||||||||||||||
2013 | $ | 1,260 | (remaining estimated amortization for 2013) | |||||||||||||||||||
2014 | 4,966 | |||||||||||||||||||||
2015 | 4,786 | |||||||||||||||||||||
2016 | 4,141 | |||||||||||||||||||||
2017 | 3,505 | |||||||||||||||||||||
2018 and thereafter | 31,099 | |||||||||||||||||||||
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 September 30, 2013. |
RETIREMENT_AND_DEFERRED_COMPEN
RETIREMENT AND DEFERRED COMPENSATION PLANS | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
RETIREMENT AND DEFERRED COMPENSATION PLANS | ' | |||||||||||||
RETIREMENT AND DEFERRED COMPENSATION PLANS | ' | |||||||||||||
NOTE 4 — RETIREMENT AND DEFERRED COMPENSATION PLANS | ||||||||||||||
Components of Net Periodic Benefit Cost: | ||||||||||||||
Domestic Plans | Foreign Plans | |||||||||||||
Three months ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||
Service cost | $ | 2,135 | $ | 1,831 | $ | 974 | $ | 573 | ||||||
Interest cost | 1,248 | 1,247 | 668 | 660 | ||||||||||
Expected return on plan assets | (1,443 | ) | (1,422 | ) | (454 | ) | (371 | ) | ||||||
Amortization of net loss | 1,276 | 978 | 353 | 116 | ||||||||||
Amortization of prior service cost | -- | 1 | 93 | 88 | ||||||||||
Net periodic benefit cost | $ | 3,216 | $ | 2,635 | $ | 1,634 | $ | 1,066 | ||||||
Domestic Plans | Foreign Plans | |||||||||||||
Nine months ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||
Service cost | $ | 6,405 | $ | 5,443 | $ | 2,902 | $ | 1,601 | ||||||
Interest cost | 3,744 | 3,706 | 1,991 | 1,935 | ||||||||||
Expected return on plan assets | (4,331 | ) | (4,227 | ) | (1,353 | ) | (1,138 | ) | ||||||
Amortization of net loss | 3,827 | 2,907 | 1,053 | 355 | ||||||||||
Amortization of prior service cost | 2 | 3 | 278 | 270 | ||||||||||
Net periodic benefit cost | $ | 9,647 | $ | 7,832 | $ | 4,871 | $ | 3,023 | ||||||
EMPLOYER CONTRIBUTIONS | ||||||||||||||
In order to meet or exceed minimum funding levels required by U.S. law, the Company contributed $10 million during the third quarter and the first nine months of 2013 and does not expect to make any contribution to the U.S. plan in the last quarter of 2013. The Company expects to contribute approximately $4.3 million to its foreign defined benefit plans in 2013 and has contributed approximately $2.0 million during the first nine months of 2013. | ||||||||||||||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME/ (LOSS) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME/ (LOSS) | ' | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME/ (LOSS) | ' | |||||||||||||
NOTE 5 — ACCUMULATED OTHER COMPREHENSIVE INCOME/ (LOSS) | ||||||||||||||
Changes in Accumulated Other Comprehensive Income by Component: | ||||||||||||||
Foreign | Defined Benefit | Other | Total | |||||||||||
Currency | Pension Plans | |||||||||||||
Balance – December 31, 2011 | $ | 100,593 | $ | (39,907 | ) | $ | (368 | ) | $ | 60,318 | ||||
Other comprehensive loss before reclassifications | (9,795 | ) | -- | -- | (9,795 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | -- | 2,234 | 187 | 2,421 | ||||||||||
Net current-period other comprehensive (loss)/income | (9,795 | ) | 2,234 | 187 | (7,374 | ) | ||||||||
Balance - September 30, 2012 | $ | 90,798 | $ | (37,673 | ) | $ | (181 | ) | $ | 52,944 | ||||
Balance – December 31, 2012 | $ | 120,097 | $ | (59,248 | ) | $ | (166 | ) | $ | 60,683 | ||||
Other comprehensive income before reclassifications | 16,275 | -- | -- | 16,275 | ||||||||||
Amounts reclassified from accumulated other comprehensive income | -- | 3,294 | 39 | 3,333 | ||||||||||
Net current-period other comprehensive income | 16,275 | 3,294 | 39 | 19,608 | ||||||||||
Balance - September 30, 2013 | $ | 136,372 | $ | (55,954 | ) | $ | (127 | ) | $ | 80,291 | ||||
Reclassifications Out of Accumulated Other Comprehensive Income: | ||||||||||||||
Details about Accumulated Other | Amount Reclassified from Accumulated | Affected Line in the Statement | ||||||||||||
Comprehensive Income Components | Other Comprehensive Income | Where Net Income is Presented | ||||||||||||
Three months ended September 30, | 2013 | 2012 | ||||||||||||
Defined Benefit Pension Plans | ||||||||||||||
Amortization of net loss | $ | 1,629 | $ | 1,094 | (a) | |||||||||
Amortization of prior service cost | 93 | 89 | (a) | |||||||||||
1,722 | 1,183 | Total before tax | ||||||||||||
(622 | ) | (441 | ) | Tax benefit | ||||||||||
$ | 1,100 | $ | 742 | Net of tax | ||||||||||
Other | ||||||||||||||
Changes in treasury locks | 14 | 22 | Interest Expense | |||||||||||
14 | 22 | Total before tax | ||||||||||||
(5 | ) | (8 | ) | Tax benefit | ||||||||||
$ | 9 | $ | 14 | Net of tax | ||||||||||
Total reclassifications for the period | $ | 1,109 | $ | 756 | ||||||||||
(a) These accumulated other comprehensive income components are included in the computation of net periodic benefit costs, net of tax (see Note 4 — Retirement and Deferred Compensation Plans for additional details). | ||||||||||||||
Details about Accumulated Other | Amount Reclassified from Accumulated | Affected Line in the Statement | ||||||||||||
Comprehensive Income Components | Other Comprehensive Income | Where Net Income is Presented | ||||||||||||
Nine months ended September 30, | 2013 | 2012 | ||||||||||||
Defined Benefit Pension Plans | ||||||||||||||
Amortization of net loss | $ | 4,880 | $ | 3,262 | (b) | |||||||||
Amortization of prior service cost | 280 | 273 | (b) | |||||||||||
5,160 | 3,535 | Total before tax | ||||||||||||
(1,866 | ) | (1,301 | ) | Tax benefit | ||||||||||
$ | 3,294 | $ | 2,234 | Net of tax | ||||||||||
Other | ||||||||||||||
Changes in treasury locks | 60 | 67 | Interest Expense | |||||||||||
Net loss on derivatives | -- | (10 | ) | Interest Income | ||||||||||
60 | 57 | Total before tax | ||||||||||||
(21 | ) | 130 | Tax benefit | |||||||||||
$ | 39 | $ | 187 | Net of tax | ||||||||||
Total reclassifications for the period | $ | 3,333 | $ | 2,421 | ||||||||||
(b) These accumulated other comprehensive income components are included in the computation of net periodic benefit costs, net of tax (see Note 4 — Retirement and Deferred Compensation Plans for additional details). | ||||||||||||||
DERIVATIVE_INSTRUMENTS_AND_HED
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ' | ||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ' | ||||||||||||||||
NOTE 6 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||||||||||||||||
The Company maintains a foreign exchange risk management policy designed to establish a framework to protect the value of the Company’s non-functional denominated transactions from adverse changes in exchange rates. Sales of the Company’s 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 the Company’s results of operations. The Company’s policy is not to engage in speculative foreign currency hedging activities, but to minimize its net foreign currency transaction exposure defined as firm commitments and transactions recorded and denominated in currencies other than the functional currency. The Company may use foreign currency forward exchange contracts, options and cross currency swaps to economically hedge these risks. | |||||||||||||||||
For derivative instruments designated as hedges, the Company formally documents 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. 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. | |||||||||||||||||
HEDGE OF NET INVESTMENTS IN FOREIGN OPERATIONS | |||||||||||||||||
A significant number of the Company’s 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 the Company’s foreign entities. A weakening U.S. dollar relative to foreign currencies has an additive translation effect on the Company’s financial condition and results of operations. Conversely, a strengthening U.S. dollar has a dilutive effect. The Company in some cases maintains debt in these subsidiaries to offset the net asset exposure. The Company does not otherwise actively manage this risk using derivative financial instruments. In the event the Company plans on a full or partial liquidation of any of its foreign subsidiaries where the Company’s net investment is likely to be monetized, the Company will consider hedging the currency exposure associated with such a transaction. | |||||||||||||||||
OTHER | |||||||||||||||||
As of September 30, 2013, the Company has recorded the fair value of foreign currency forward exchange contracts of $3.5 million in prepaid and other, $31 thousand in miscellaneous other assets, $0.8 million in accounts payable and accrued liabilities, and $0.2 million in deferred and other non-current liabilities in the balance sheet. All forward exchange contracts outstanding as of September 30, 2013 had an aggregate contract amount of $160 million. | |||||||||||||||||
Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets as of September 30, 2013 | |||||||||||||||||
and December 31, 2012 | |||||||||||||||||
Derivative Contracts Not Designated | Balance Sheet | September | December | ||||||||||||||
as Hedging Instruments | Location | 30, 2013 | 31, 2012 | ||||||||||||||
Derivative Assets | |||||||||||||||||
Foreign Exchange Contracts | Prepaid and other | $ | 3,530 | $ | 332 | ||||||||||||
Foreign Exchange Contracts | Miscellaneous Other Assets | 31 | 982 | ||||||||||||||
$ | 3,561 | $ | 1,314 | ||||||||||||||
Derivative Liabilities | |||||||||||||||||
Foreign Exchange Contracts | Accounts payable and accrued liabilities | $ | 838 | $ | 2,097 | ||||||||||||
Foreign Exchange Contracts | Deferred and other non-current liabilities | 163 | 164 | ||||||||||||||
$ | 1,001 | $ | 2,261 | ||||||||||||||
The Effect of Derivative Instruments on the Condensed Consolidated Statements of Income | |||||||||||||||||
for the Quarters Ended September 30, 2013 and September 30, 2012 | |||||||||||||||||
Derivatives Not Designated as | Location of Gain or (Loss) Recognized in | Amount of Gain or (Loss) | |||||||||||||||
Recognized in Income on | |||||||||||||||||
Derivative | |||||||||||||||||
Hedging Instruments | Income on Derivative | 2013 | 2012 | ||||||||||||||
Foreign Exchange Contracts | Other Income (Expense) Miscellaneous, net | $ | 2,894 | $ | (81 | ) | |||||||||||
$ | 2,894 | $ | (81 | ) | |||||||||||||
The Effect of Derivative Instruments on the Condensed Consolidated Statements of Income | |||||||||||||||||
for the Nine Months Ended September 30, 2013 and September 30, 2012 | |||||||||||||||||
Derivatives Not Designated as | Location of Gain or (Loss) Recognized in | Amount of Gain or (Loss) | |||||||||||||||
Recognized in Income on | |||||||||||||||||
Derivative | |||||||||||||||||
Hedging Instruments | Income on Derivative | 2013 | 2012 | ||||||||||||||
Foreign Exchange Contracts | Other Income (Expense) Miscellaneous, net | $ | 2,851 | $ | (1,316 | ) | |||||||||||
$ | 2,851 | $ | (1,316 | ) | |||||||||||||
Net Amounts | Gross Amounts not Offset in the | ||||||||||||||||
Gross Amounts | Presented in | Statement of Financial Position | |||||||||||||||
Gross | Offset in the | the Statement of | Financial | Cash Collateral | Net | ||||||||||||
Amount | Financial Position | Financial Position | Instruments | Received | Amount | ||||||||||||
Description | |||||||||||||||||
2013 | |||||||||||||||||
Derivative Assets | $ | 3,561 | -- | $ | 3,561 | -- | -- | $ | 3,561 | ||||||||
Total Assets | $ | 3,561 | -- | $ | 3,561 | -- | -- | $ | 3,561 | ||||||||
Derivative Liabilities | $ | 1,001 | -- | $ | 1,001 | -- | -- | $ | 1,001 | ||||||||
Total Liabilities | $ | 1,001 | -- | $ | 1,001 | -- | -- | $ | 1,001 | ||||||||
2012 | |||||||||||||||||
Derivative Assets | $ | 1,314 | -- | $ | 1,314 | -- | -- | $ | 1,314 | ||||||||
Total Assets | $ | 1,314 | -- | $ | 1,314 | -- | -- | $ | 1,314 | ||||||||
Derivative Liabilities | $ | 2,261 | -- | $ | 2,261 | -- | -- | $ | 2,261 | ||||||||
Total Liabilities | $ | 2,261 | -- | $ | 2,261 | -- | -- | $ | 2,261 | ||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2013 | |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | ' |
NOTE 7 — COMMITMENTS AND CONTINGENCIES | |
The Company, in the normal course of business, is subject to a number of lawsuits and claims both actual and potential in nature including the proceeding noted below. While management believes the resolution of these claims and lawsuits will not have a material adverse effect on the Company’s financial position or results of operations or cash flows, claims and legal proceedings are subject to inherent uncertainties, and unfavorable outcomes could occur that could include amounts in excess of any accruals which management has established. Were such unfavorable final outcomes to occur, it is possible that they could have a material adverse effect on our financial position, results of operations and cash flows. | |
In 2010, a competitor filed a lawsuit against certain AptarGroup, Inc. subsidiaries alleging that certain processes performed by a supplier of a specific type of diptube utilized by the AptarGroup, Inc. subsidiaries in the manufacture of a specific type of pump infringes patents owned by the counterparty. This lawsuit sought an injunction barring the manufacture, use, sale and importation of this specific pump for use in fragrance containers. In April 2012, the Company’s United States subsidiary was found to have infringed on patents owned by the counterparty within the United States. The ruling does not apply to the manufacture or sales of pumps in countries outside the United States and no damages were assessed. The Company appealed this ruling to the Federal Circuit Court which has sent the case back to the District Court for trial on the question of whether the patents are obvious and not enforceable. | |
Under its Certificate of Incorporation, the Company has agreed to indemnify its officers and directors for certain events or occurrences while the officer or director is, or was serving, at its request in such capacity. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a directors and officers liability insurance policy that covers a portion of its exposure. As a result of its insurance policy coverage, the Company believes the estimated fair value of these indemnification agreements is minimal. The Company has no liabilities recorded for these agreements as of September 30, 2013. | |
STOCK_REPURCHASE_PROGRAM
STOCK REPURCHASE PROGRAM | 9 Months Ended |
Sep. 30, 2013 | |
STOCK REPURCHASE PROGRAM | ' |
STOCK REPURCHASE PROGRAM | ' |
NOTE 8 — STOCK REPURCHASE PROGRAM | |
During the three and nine months ended September 30, 2013, the Company repurchased approximately 600 thousand and 1.4 million shares for aggregate amounts of $35.6 million and $80.2 million, respectively. The timing of and total amount expended for share repurchases depends upon market conditions. The Company announced the existing repurchase program on July 19, 2011 and on July 18, 2013 the Company’s Board of Directors authorized the Company to repurchase an additional four million shares of its outstanding common stock. There is no expiration date for these repurchase programs. As of September 30, 2013, the Company had remaining authorization to repurchase 4.6 million additional shares. | |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||
NOTE 9 — EARNINGS PER SHARE | ||||||||||||||
AptarGroup’s authorized common stock consists of 199 million shares, having a par value of $.01 each. Information related to the calculation of earnings per share is as follows: | ||||||||||||||
Three months ended | ||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||
Diluted | Basic | Diluted | Basic | |||||||||||
Consolidated operations | ||||||||||||||
Income available to common shareholders | $ | 45,264 | $ | 45,264 | $ | 42,127 | $ | 42,127 | ||||||
Average equivalent shares | ||||||||||||||
Shares of common stock | 66,092 | 66,092 | 66,541 | 66,541 | ||||||||||
Effect of dilutive stock based compensation | ||||||||||||||
Stock options | 1,887 | -- | 1,804 | -- | ||||||||||
Restricted stock | 7 | -- | 8 | -- | ||||||||||
Total average equivalent shares | 67,986 | 66,092 | 68,353 | 66,541 | ||||||||||
Net income per share | $ | 0.67 | $ | 0.68 | $ | 0.62 | $ | 0.63 | ||||||
Nine months ended | ||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||
Diluted | Basic | Diluted | Basic | |||||||||||
Consolidated operations | ||||||||||||||
Income available to common stockholders | $ | 135,095 | $ | 135,095 | $ | 127,622 | $ | 127,622 | ||||||
Average equivalent shares | ||||||||||||||
Shares of common stock | 66,222 | 66,222 | 66,439 | 66,439 | ||||||||||
Effect of dilutive stock based compensation | ||||||||||||||
Stock options | 2,041 | -- | 2,259 | -- | ||||||||||
Restricted stock | 10 | -- | 13 | -- | ||||||||||
Total average equivalent shares | 68,273 | 66,222 | 68,711 | 66,439 | ||||||||||
Net income per share | $ | 1.98 | $ | 2.04 | $ | 1.86 | $ | 1.92 | ||||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
NOTE 10 — SEGMENT INFORMATION | ||||||||||||||
The Company operates in the packaging components industry, which includes the development, manufacture and sale of consumer product dispensing systems. The Company is organized into three reporting segments. Operations that sell dispensing systems primarily to the beauty, personal care, and home care markets form the Beauty + Home segment. Operations that sell dispensing systems primarily to the prescription drug and consumer health care markets form the Pharma segment. Operations that sell dispensing systems primarily to the food and beverage markets form the Food + Beverage segment. The accounting policies of the segments are the same as those described in Note 1, Summary of Significant Accounting Policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | ||||||||||||||
Financial information regarding the Company’s reportable segments is shown below: | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Total Revenue: | ||||||||||||||
Beauty + Home | $ | 379,250 | $ | 362,077 | $ | 1,125,261 | $ | 1,115,766 | ||||||
Pharma | 172,360 | 156,044 | 524,248 | 429,278 | ||||||||||
Food + Beverage | 75,531 | 75,245 | 244,434 | 226,751 | ||||||||||
Total Revenue | 627,141 | 593,366 | 1,893,943 | 1,771,795 | ||||||||||
Less: Intersegment Sales: | ||||||||||||||
Beauty + Home | $ | 3,199 | $ | 3,601 | $ | 10,754 | $ | 10,855 | ||||||
Pharma | 90 | (56 | ) | 178 | 156 | |||||||||
Food + Beverage | 208 | 223 | 293 | 1,185 | ||||||||||
Total Intersegment Sales | $ | 3,497 | $ | 3,768 | $ | 11,225 | $ | 12,196 | ||||||
Net Sales: | ||||||||||||||
Beauty + Home | $ | 376,051 | $ | 358,476 | $ | 1,114,507 | $ | 1,104,911 | ||||||
Pharma | 172,270 | 156,100 | 524,070 | 429,122 | ||||||||||
Food + Beverage | 75,323 | 75,022 | 244,141 | 225,566 | ||||||||||
Net Sales | $ | 623,644 | $ | 589,598 | $ | 1,882,718 | $ | 1,759,599 | ||||||
Segment Income (1): | ||||||||||||||
Beauty + Home | $ | 30,943 | $ | 30,050 | $ | 85,697 | $ | 96,569 | ||||||
Pharma | 44,737 | 34,194 | 141,154 | 104,676 | ||||||||||
Food + Beverage | 7,688 | 9,611 | 28,102 | 24,142 | ||||||||||
Restructuring Initiatives and Related Depreciation | (2,664 | ) | -- | (10,257 | ) | 215 | ||||||||
Corporate & Other | (8,113 | ) | (6,443 | ) | (27,605 | ) | (22,048 | ) | ||||||
Income before interest and taxes | $ | 72,591 | $ | 67,412 | $ | 217,091 | $ | 203,554 | ||||||
Interest expense, net | (4,265 | ) | (4,386 | ) | (13,093 | ) | (11,710 | ) | ||||||
Income before income taxes | $ | 68,326 | $ | 63,026 | $ | 203,998 | $ | 191,844 | ||||||
(1) The Company evaluates performance of its business units and allocates resources based upon segment income. Segment income is defined as earnings before net interest expense, certain corporate expenses, restructuring initiatives and related depreciation, and income taxes. Restructuring Initiatives and Related Depreciation includes the following income/(expense) items for the three and nine months ended September 30, 2013 as follows: | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
European Restructuring Plan | ||||||||||||||
Depreciation | $ | 484 | $ | -- | $ | 1,499 | $ | -- | ||||||
Employee Severance and Other Costs | 2,180 | -- | 8,802 | -- | ||||||||||
Prior Year Initiatives | -- | -- | (44 | ) | (215 | ) | ||||||||
Total Restructuring Initiatives and Related Depreciation Expense | $ | 2,664 | $ | -- | $ | 10,257 | $ | (215 | ) | |||||
Restructuring Initiatives and Related Depreciation Expense by Segment | ||||||||||||||
Beauty + Home | $ | 2,664 | $ | -- | $ | 10,280 | $ | (105 | ) | |||||
Pharma | -- | -- | -- | -- | ||||||||||
Food + Beverage | -- | -- | (23 | ) | (110 | ) | ||||||||
Total Restructuring Initiatives and Related Depreciation Expense | $ | 2,664 | $ | -- | $ | 10,257 | $ | (215 | ) | |||||
ACQUISITIONS
ACQUISITIONS | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
ACQUISITIONS | ' | |||||||||||||
ACQUISITIONS | ' | |||||||||||||
NOTE 11 — ACQUISITIONS | ||||||||||||||
On July 3, 2012, the Company completed its acquisition of Rumpler - Technologies S.A., together with its direct and indirect subsidiaries (“Stelmi”). Stelmi is a producer of elastomer primary packaging components for injectable drug delivery and operates two manufacturing plants located in the Normandy region of France and also has a research and development facility located near Paris. The Company acquired all of the shares of Stelmi. The purchase price paid for Stelmi (net of cash acquired) was approximately $188 million and was funded by cash on hand. The results of the acquired business for the period from the acquisition date are included in the accompanying consolidated financial statements and are reported in the Pharma reporting segment. | ||||||||||||||
The following table summarizes the assets acquired and liabilities assumed as of the acquisition date at estimated fair value: | ||||||||||||||
July 3, 2012 | ||||||||||||||
Assets | ||||||||||||||
Cash and equivalents | $ | 68,335 | ||||||||||||
Accounts receivable | 23,540 | |||||||||||||
Inventories | 16,826 | |||||||||||||
Prepaid and other | 3,256 | |||||||||||||
Property, plant and equipment | 42,073 | |||||||||||||
Goodwill | 111,031 | |||||||||||||
Intangible assets | 47,134 | |||||||||||||
Other miscellaneous assets | 6,092 | |||||||||||||
Liabilities | ||||||||||||||
Current maturities of long-term obligations | 675 | |||||||||||||
Accounts payable and accrued liabilities | 26,064 | |||||||||||||
Long-term obligations | 885 | |||||||||||||
Deferred income taxes | 22,440 | |||||||||||||
Retirement and deferred compensation plans | 12,049 | |||||||||||||
Net assets acquired | $ | 256,174 | ||||||||||||
The following table is a summary of the fair value estimates of the acquired identifiable intangible assets and weighted-average useful lives as of the acquisition date: | ||||||||||||||
Weighted-Average | Estimated | |||||||||||||
Useful Life | Fair Value | |||||||||||||
(in years) | of Asset | |||||||||||||
Customer relationships | 15 | $ | 7,438 | |||||||||||
Technology | 15 | 37,191 | ||||||||||||
Trademark | 4 | 2,505 | ||||||||||||
Total | $ | 47,134 | ||||||||||||
Goodwill in the amount of $111.0 million was recorded for the acquisition of Stelmi and is included in the Pharma segment. Goodwill is calculated as the excess of the consideration transferred over the net assets acquired and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill largely consists of leveraging the Company’s commercial presence in selling the Stelmi line of products in markets where Stelmi didn’t previously operate and the ability of Stelmi to maintain its competitive advantage from a technical viewpoint. Goodwill will not be amortized, but will be tested for impairment at least annually. We do not expect that any of the goodwill will be deductible for tax purposes. | ||||||||||||||
The unaudited pro forma results presented below include the effects of the Stelmi acquisition as if it had occurred as of January 1, 2011. The unaudited pro forma results reflect certain adjustments related to the acquisition, such as the amortization associated with estimates for the acquired intangible assets and fair value adjustments for inventory. The pro forma results do not include any synergies or other expected benefits of the acquisition. Accordingly, the unaudited pro forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the acquisition been completed on the dates indicated. | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Net Sales | $ | 623,644 | $ | 589,598 | $ | 1,882,718 | $ | 1,823,660 | ||||||
Net Income Attributable to AptarGroup, Inc. | 45,264 | 44,628 | 135,103 | 138,839 | ||||||||||
Net Income per common share - basic | 0.68 | 0.67 | 2.04 | 2.09 | ||||||||||
Net Income per common share - diluted | 0.67 | 0.65 | 1.98 | 2.02 | ||||||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||
NOTE 12 — STOCK-BASED COMPENSATION | ||||||||||||||
The Company issues stock options and restricted stock units to employees under Stock Awards Plans approved by shareholders. Stock options are issued to non-employee directors for their services as directors under Director Stock Option Plans approved by shareholders. Options are awarded with the exercise price equal to the market price on the date of grant and generally become exercisable over three years and expire 10 years after grant. Restricted stock units generally vest over three years. | ||||||||||||||
Compensation expense recorded attributable to stock options for the first nine months of 2013 was approximately $11.5 million ($7.7 million after tax). The income tax benefit related to this compensation expense was approximately $3.8 million. Approximately $10.2 million of the compensation expense was recorded in selling, research & development and administrative expenses and the balance was recorded in cost of sales. Compensation expense recorded attributable to stock options for the first nine months of 2012 was approximately $10.8 million ($7.2 million after tax). The income tax benefit related to this compensation expense was approximately $3.6 million. Approximately $9.6 million of the compensation expense was recorded in selling, research & development and administrative expenses and the balance was recorded in cost of sales. | ||||||||||||||
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 was $10.16 and $10.35 per share in 2013 and 2012, respectively. These values were estimated on the respective dates of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: | ||||||||||||||
Stock Awards Plans: | ||||||||||||||
Nine months ended September 30, | 2013 | 2012 | ||||||||||||
Dividend Yield | 1.8 | % | 1.8 | % | ||||||||||
Expected Stock Price Volatility | 22.7 | % | 22.9 | % | ||||||||||
Risk-free Interest Rate | 1.3 | % | 1.3 | % | ||||||||||
Expected Life of Option (years) | 6.9 | 6.9 | ||||||||||||
The fair value of stock options granted under the Director Stock Option Plan was $10.89 and $10.59 per share during the first nine months of 2013 and 2012, respectively. These values were estimated on the respective date of the grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: | ||||||||||||||
Director Stock Option Plans: | ||||||||||||||
Nine months ended September 30, | 2013 | 2012 | ||||||||||||
Dividend Yield | 1.9 | % | 1.7 | % | ||||||||||
Expected Stock Price Volatility | 23 | % | 22.5 | % | ||||||||||
Risk-free Interest Rate | 1.3 | % | 1.3 | % | ||||||||||
Expected Life of Option (years) | 6.9 | 6.9 | ||||||||||||
A summary of option activity under the Company’s stock option plans as of September 30, 2013, and changes during the nine months then ended is presented below: | ||||||||||||||
Stock Awards Plans | Director Stock Option Plans | |||||||||||||
Weighted Average | Weighted Average | |||||||||||||
Shares | Exercise Price | Shares | Exercise Price | |||||||||||
Outstanding, January 1, 2013 | 7,879,197 | $ | 37.27 | 276,667 | $ | 45.48 | ||||||||
Granted | 1,385,300 | 51.83 | 85,500 | 56.49 | ||||||||||
Exercised | (1,249,180 | ) | 28.6 | (48,333 | ) | 43.11 | ||||||||
Forfeited or expired | (47,399 | ) | 47.24 | -- | -- | |||||||||
Outstanding at September 30, 2013 | 7,967,918 | $ | 41.1 | 313,834 | $ | 48.85 | ||||||||
Exercisable at September 30, 2013 | 5,396,418 | $ | 36.26 | 146,001 | $ | 42.05 | ||||||||
Weighted-Average Remaining Contractual Term (Years): | ||||||||||||||
Outstanding at September 30, 2013 | 6.3 | 7.8 | ||||||||||||
Exercisable at September 30, 2013 | 5.1 | 6.4 | ||||||||||||
Aggregate Intrinsic Value ($000): | ||||||||||||||
Outstanding at September 30, 2013 | $ | 151,630 | $ | 3,541 | ||||||||||
Exercisable at September 30, 2013 | $ | 128,807 | $ | 2,640 | ||||||||||
Intrinsic Value of Options Exercised ($000) During the Nine Months Ended: | ||||||||||||||
September 30, 2013 | $ | 33,123 | $ | 732 | ||||||||||
September 30, 2012 | $ | 34,674 | $ | 937 | ||||||||||
The grant date fair value of options vested during the nine months ended September 30, 2013 and 2012 was $12.9 million and $12.1 million, respectively. Cash received from option exercises was approximately $38.4 million and the actual tax benefit realized for the tax deduction from option exercises was approximately $7.9 million in the nine months ended September 30, 2013. As of September 30, 2013, the remaining valuation of stock option awards to be expensed in future periods was $12.0 million and the related weighted-average period over which it is expected to be recognized is 1.5 years. | ||||||||||||||
The fair value of restricted stock unit grants is the market price of the underlying shares on the grant date. A summary of restricted stock unit activity as of September 30, 2013, and changes during the period then ended is presented below: | ||||||||||||||
Weighted-Average | ||||||||||||||
Shares | Grant-Date Fair Value | |||||||||||||
Nonvested at January 1, 2013 | 25,862 | $ | 48.76 | |||||||||||
Granted | 12,448 | 54.92 | ||||||||||||
Vested | (12,629 | ) | 45.2 | |||||||||||
Nonvested at September 30, 2013 | 25,681 | $ | 53.49 | |||||||||||
Compensation expense recorded attributable to restricted stock unit grants for the first nine months of 2013 and 2012 was approximately $574 thousand and $438 thousand, respectively. The fair value of units vested during the nine months ended September 30, 2013 and 2012 was $571 thousand and $316 thousand, respectively. The intrinsic value of units vested during the nine months ended September 30, 2013 and 2012 was $661 thousand and $448 thousand, respectively. As of September 30, 2013 there was $611 thousand of total unrecognized compensation cost relating to restricted stock unit awards which is expected to be recognized over a weighted-average period of 1.5 years. |
INCOME_TAX_UNCERTAINTIES
INCOME TAX UNCERTAINTIES | 9 Months Ended |
Sep. 30, 2013 | |
INCOME TAX UNCERTAINTIES | ' |
INCOME TAX UNCERTAINTIES | ' |
NOTE 13 — INCOME TAX UNCERTAINTIES | |
The Company had approximately $8.4 million and $8.5 million recorded for income tax uncertainties as of September 30, 2013 and December 31, 2012, respectively. The $0.1 million change in income tax uncertainties was primarily the result of the expiration of the statute of limitations in several jurisdictions. The amount, if recognized, that would impact the effective tax rate is $8.0 and $8.1 million, respectively. The Company estimates that it is reasonably possible that the liability for uncertain tax positions will decrease by no more than $5 million in the next twelve months from the resolution of various uncertain positions as a result of the completion of tax audits, litigation and the expiration of the statute of limitations in various jurisdictions. |
FAIR_VALUE
FAIR VALUE | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
FAIR VALUE | ' | |||||||||||||
FAIR VALUE | ' | |||||||||||||
NOTE 14 — 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 September 30, 2013, the fair values of our financial assets and liabilities were categorized as follows: | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Assets | ||||||||||||||
Forward exchange contracts (a) | $ | 3,561 | $ | -- | $ | 3,561 | $ | -- | ||||||
Total assets at fair value | $ | 3,561 | $ | -- | $ | 3,561 | $ | -- | ||||||
Liabilities | ||||||||||||||
Forward exchange contracts (a) | $ | 1,001 | $ | -- | $ | 1,001 | $ | -- | ||||||
Total liabilities at fair value | $ | 1,001 | $ | -- | $ | 1,001 | $ | -- | ||||||
As of December 31, 2012, the fair values of our financial assets and liabilities were categorized as follows: | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Assets | ||||||||||||||
Forward exchange contracts (a) | $ | 1,314 | $ | -- | $ | 1,314 | $ | -- | ||||||
Total assets at fair value | $ | 1,314 | $ | -- | $ | 1,314 | $ | -- | ||||||
Liabilities | ||||||||||||||
Forward exchange contracts (a) | $ | 2,261 | $ | -- | $ | 2,261 | $ | -- | ||||||
Total liabilities at fair value | $ | 2,261 | $ | -- | $ | 2,261 | $ | -- | ||||||
(a) Market approach valuation technique based on observable market transactions of spot and forward rates | ||||||||||||||
The carrying amounts of the Company’s other current financial instruments such as cash and equivalents, notes payable and current maturities of long-term obligations approximate fair value due to the short-term maturity of the instrument. The Company considers its long-term obligations a Level 2 liability and utilizes the market approach valuation technique based on interest rates that are currently available to the Company for issuance of debt with similar terms and maturities. The estimated fair value of the Company’s long-term obligations was $370 million as of September 30, 2013 and $382 million as of December 31, 2012. | ||||||||||||||
RESTRUCTURING_INITIATIVE
RESTRUCTURING INITIATIVE | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
RESTRUCTURING INITIATIVE | ' | ||||||||||||||||
RESTRUCTURING INITIATIVE | ' | ||||||||||||||||
NOTE 15 — RESTRUCTURING INITIATIVE | |||||||||||||||||
On November 1, 2012, the Company announced a plan to optimize certain capacity in Europe. Due to increased production efficiencies and to better position the Company for future growth in Europe, AptarGroup is transferring and consolidating production capacity involving twelve facilities. One facility has closed and another is expected to close by the end of 2013. These closures will impact approximately 170 employees. The locations involved in the plan are facilities that are serving the beauty, personal care, food, beverage, and consumer health care markets. The total costs associated with the plan are estimated to be approximately €14 million (approximately $19 million using current exchange rates) of which approximately €3 million (approximately $4 million using current exchange rates) relates to non-cash expenses and are included in depreciation and amortization in the Condensed Consolidated Statements of Income. The cumulative expense incurred to date is $15.2 million. As of September 30, 2013 we have recorded the following activity associated with our plan: | |||||||||||||||||
Beginning | Net Charges for | Ending | |||||||||||||||
Reserve at | the Nine Months | Reserve at | |||||||||||||||
12/31/12 | Ended 9/30/13 | Cash Paid | FX Impact | 9/30/13 | |||||||||||||
Employee severance | $ | 3,158 | $ | 6,735 | $ | (6,136 | ) | $ | 95 | $ | 3,852 | ||||||
Other costs | -- | 2,067 | (2,072 | ) | 5 | -- | |||||||||||
Totals | $ | 3,158 | $ | 8,802 | $ | (8,208 | ) | $ | 100 | $ | 3,852 | ||||||
In addition to the above charges, $1.5 million of accelerated depreciation was incurred in the first nine months of 2013. This amount is included within depreciation and amortization in the Condensed Consolidated Statements of Income. | |||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
ADOPTION OF RECENT ACCOUNTING PRONOUNCEMENTS | ' |
ADOPTION OF RECENT ACCOUNTING PRONOUNCEMENTS | |
Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates to the FASB’s Accounting Standards Codification. | |
In February 2013, the FASB issued authoritative guidance that amends the presentation of accumulated other comprehensive income and clarifies how to report the effect of significant reclassifications out of accumulated other comprehensive income. The guidance requires footnote disclosures regarding the changes in accumulated other comprehensive income by component and the line items affected in the statements of earnings. The adoption of this standard had no impact on the Condensed Consolidated Financial Statements other than disclosure. Additional information can be found in Note 5 of the Notes to the Condensed Consolidated Financial Statements. | |
In January 2013, the FASB issued authoritative guidance requiring new asset and liability offsetting disclosures for derivatives, repurchase agreements and security lending transactions to the extent that they are offset in the financial statements or are subject to an enforceable master netting arrangement or similar agreement. We do not have any repurchase agreements and do not participate in securities lending transactions. Our derivative instruments are not offset in the financial statements. Accordingly, the adoption of this standard had no impact on the Condensed Consolidated Financial Statements other than disclosure. Additional information can be found in Note 6 of the Notes to the Condensed Consolidated Financial Statements. | |
INCOME TAXES | ' |
INCOME TAXES | |
The Company computes taxes on income in accordance with the tax rules and regulations of the many taxing authorities where the income is earned. The income tax rates imposed by these taxing authorities may vary substantially. Taxable income may differ from pretax income for financial accounting purposes. To the extent that these differences create differences between the tax basis of an asset or liability and its reported amount in the financial statements, an appropriate provision for deferred income taxes is made. | |
In its determination of which foreign earnings are permanently reinvested in foreign operations, the Company considers numerous factors, including the financial requirements of the U.S. parent company and those of its foreign subsidiaries, the U.S. funding needs for dividend payments and stock repurchases, and the tax consequences of remitting earnings to the U.S. From this analysis, current year repatriation decisions are made in an attempt to provide a proper mix of debt and shareholder capital both within the U.S. and for non-U.S. operations. The Company’s policy is to permanently reinvest its accumulated foreign earnings and only will make a distribution out of current year earnings to meet the cash needs at the parent company. As such, the Company does not provide taxes on earnings that are deemed to be permanently reinvested. The effective tax rate for 2013 includes the tax cost of repatriating $77 million of current year earnings, all of which was repatriated in the first half of 2013. | |
The Company provides a liability for the amount of tax benefits realized from uncertain tax positions. This liability is provided whenever the Company determines that a tax benefit will not meet a more-likely-than-not threshold for recognition. See Note 13 of the Notes to the Condensed Consolidated Financial Statements for more information. |
INVENTORIES_Tables
INVENTORIES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
INVENTORIES | ' | |||||||
Schedule of inventories, by component | ' | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 113,673 | $ | 125,889 | ||||
Work in process | 109,062 | 75,261 | ||||||
Finished goods | 134,575 | 127,393 | ||||||
Total | 357,310 | 328,543 | ||||||
Less LIFO Reserve | (7,620 | ) | (6,658 | ) | ||||
Total | $ | 349,690 | $ | 321,885 |
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | |||||||||||||||||||||
Schedule of changes in the carrying amount of goodwill | ' | |||||||||||||||||||||
Beauty + | Food + | Corporate | ||||||||||||||||||||
Home | Pharma | Beverage | & Other | Total | ||||||||||||||||||
Goodwill | $ | 179,890 | $ | 153,978 | $ | 17,684 | $ | 1,615 | $ | 353,167 | ||||||||||||
Accumulated impairment losses | -- | -- | -- | (1,615 | ) | (1,615 | ) | |||||||||||||||
Balance as of December 31, 2012 | $ | 179,890 | $ | 153,978 | $ | 17,684 | $ | -- | $ | 351,552 | ||||||||||||
Acquisition | -- | -- | -- | -- | -- | |||||||||||||||||
Foreign currency exchange effects | 66 | 3,560 | 138 | -- | 3,764 | |||||||||||||||||
Goodwill | $ | 179,956 | $ | 157,538 | $ | 17,822 | $ | 1,615 | $ | 356,931 | ||||||||||||
Accumulated impairment losses | -- | -- | -- | (1,615 | ) | (1,615 | ) | |||||||||||||||
Balance as of September 30, 2013 | $ | 179,956 | $ | 157,538 | $ | 17,822 | $ | -- | $ | 355,316 | ||||||||||||
Summary of amortized intangible assets | ' | |||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||
Weighted Average | Gross | Gross | ||||||||||||||||||||
Amortization | Carrying | Accumulated | Net | Carrying | Accumulated | Net | ||||||||||||||||
Period (Years) | Amount | Amortization | Value | Amount | Amortization | Value | ||||||||||||||||
Amortized intangible assets: | ||||||||||||||||||||||
Patents | 7 | $ | 20,033 | $ | (19,542 | ) | $ | 491 | $ | 19,570 | $ | (18,894 | ) | $ | 676 | |||||||
Acquired technology | 15 | 39,906 | (3,325 | ) | 36,581 | 38,928 | (1,298 | ) | 37,630 | |||||||||||||
License agreements and other | 5 | 36,089 | (23,404 | ) | 12,685 | 35,780 | (22,126 | ) | 13,654 | |||||||||||||
Total intangible assets | 10 | $ | 96,028 | $ | (46,271 | ) | $ | 49,757 | $ | 94,278 | $ | (42,318 | ) | $ | 51,960 | |||||||
Schedule of future estimated amortization expense | ' | |||||||||||||||||||||
2013 | $ | 1,260 | (remaining estimated amortization for 2013) | |||||||||||||||||||
2014 | 4,966 | |||||||||||||||||||||
2015 | 4,786 | |||||||||||||||||||||
2016 | 4,141 | |||||||||||||||||||||
2017 | 3,505 | |||||||||||||||||||||
2018 and thereafter | 31,099 |
RETIREMENT_AND_DEFERRED_COMPEN1
RETIREMENT AND DEFERRED COMPENSATION PLANS (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
RETIREMENT AND DEFERRED COMPENSATION PLANS | ' | |||||||||||||
Components of Net Periodic Benefit Cost | ' | |||||||||||||
Domestic Plans | Foreign Plans | |||||||||||||
Three months ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||
Service cost | $ | 2,135 | $ | 1,831 | $ | 974 | $ | 573 | ||||||
Interest cost | 1,248 | 1,247 | 668 | 660 | ||||||||||
Expected return on plan assets | (1,443 | ) | (1,422 | ) | (454 | ) | (371 | ) | ||||||
Amortization of net loss | 1,276 | 978 | 353 | 116 | ||||||||||
Amortization of prior service cost | -- | 1 | 93 | 88 | ||||||||||
Net periodic benefit cost | $ | 3,216 | $ | 2,635 | $ | 1,634 | $ | 1,066 | ||||||
Domestic Plans | Foreign Plans | |||||||||||||
Nine months ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||
Service cost | $ | 6,405 | $ | 5,443 | $ | 2,902 | $ | 1,601 | ||||||
Interest cost | 3,744 | 3,706 | 1,991 | 1,935 | ||||||||||
Expected return on plan assets | (4,331 | ) | (4,227 | ) | (1,353 | ) | (1,138 | ) | ||||||
Amortization of net loss | 3,827 | 2,907 | 1,053 | 355 | ||||||||||
Amortization of prior service cost | 2 | 3 | 278 | 270 | ||||||||||
Net periodic benefit cost | $ | 9,647 | $ | 7,832 | $ | 4,871 | $ | 3,023 |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME/ (LOSS) (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME/ (LOSS) | ' | |||||||||||||
Changes in Accumulated Other Comprehensive Income by Component | ' | |||||||||||||
Foreign | Defined Benefit | Other | Total | |||||||||||
Currency | Pension Plans | |||||||||||||
Balance – December 31, 2011 | $ | 100,593 | $ | (39,907 | ) | $ | (368 | ) | $ | 60,318 | ||||
Other comprehensive loss before reclassifications | (9,795 | ) | -- | -- | (9,795 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | -- | 2,234 | 187 | 2,421 | ||||||||||
Net current-period other comprehensive (loss)/income | (9,795 | ) | 2,234 | 187 | (7,374 | ) | ||||||||
Balance - September 30, 2012 | $ | 90,798 | $ | (37,673 | ) | $ | (181 | ) | $ | 52,944 | ||||
Balance – December 31, 2012 | $ | 120,097 | $ | (59,248 | ) | $ | (166 | ) | $ | 60,683 | ||||
Other comprehensive income before reclassifications | 16,275 | -- | -- | 16,275 | ||||||||||
Amounts reclassified from accumulated other comprehensive income | -- | 3,294 | 39 | 3,333 | ||||||||||
Net current-period other comprehensive income | 16,275 | 3,294 | 39 | 19,608 | ||||||||||
Balance - September 30, 2013 | $ | 136,372 | $ | (55,954 | ) | $ | (127 | ) | $ | 80,291 | ||||
Reclassifications Out of Accumulated Other Comprehensive Income | ' | |||||||||||||
Details about Accumulated Other | Amount Reclassified from Accumulated | Affected Line in the Statement | ||||||||||||
Comprehensive Income Components | Other Comprehensive Income | Where Net Income is Presented | ||||||||||||
Three months ended September 30, | 2013 | 2012 | ||||||||||||
Defined Benefit Pension Plans | ||||||||||||||
Amortization of net loss | $ | 1,629 | $ | 1,094 | (a) | |||||||||
Amortization of prior service cost | 93 | 89 | (a) | |||||||||||
1,722 | 1,183 | Total before tax | ||||||||||||
(622 | ) | (441 | ) | Tax benefit | ||||||||||
$ | 1,100 | $ | 742 | Net of tax | ||||||||||
Other | ||||||||||||||
Changes in treasury locks | 14 | 22 | Interest Expense | |||||||||||
14 | 22 | Total before tax | ||||||||||||
(5 | ) | (8 | ) | Tax benefit | ||||||||||
$ | 9 | $ | 14 | Net of tax | ||||||||||
Total reclassifications for the period | $ | 1,109 | $ | 756 | ||||||||||
(a) These accumulated other comprehensive income components are included in the computation of net periodic benefit costs, net of tax (see Note 4 — Retirement and Deferred Compensation Plans for additional details). | ||||||||||||||
Details about Accumulated Other | Amount Reclassified from Accumulated | Affected Line in the Statement | ||||||||||||
Comprehensive Income Components | Other Comprehensive Income | Where Net Income is Presented | ||||||||||||
Nine months ended September 30, | 2013 | 2012 | ||||||||||||
Defined Benefit Pension Plans | ||||||||||||||
Amortization of net loss | $ | 4,880 | $ | 3,262 | (b) | |||||||||
Amortization of prior service cost | 280 | 273 | (b) | |||||||||||
5,160 | 3,535 | Total before tax | ||||||||||||
(1,866 | ) | (1,301 | ) | Tax benefit | ||||||||||
$ | 3,294 | $ | 2,234 | Net of tax | ||||||||||
Other | ||||||||||||||
Changes in treasury locks | 60 | 67 | Interest Expense | |||||||||||
Net loss on derivatives | -- | (10 | ) | Interest Income | ||||||||||
60 | 57 | Total before tax | ||||||||||||
(21 | ) | 130 | Tax benefit | |||||||||||
$ | 39 | $ | 187 | Net of tax | ||||||||||
Total reclassifications for the period | $ | 3,333 | $ | 2,421 | ||||||||||
(b) These accumulated other comprehensive income components are included in the computation of net periodic benefit costs, net of tax (see Note 4 — Retirement and Deferred Compensation Plans for additional details). |
DERIVATIVE_INSTRUMENTS_AND_HED1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ' | ||||||||||||||||
Schedule of Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets | ' | ||||||||||||||||
Derivative Contracts Not Designated | Balance Sheet | September | December | ||||||||||||||
as Hedging Instruments | Location | 30, 2013 | 31, 2012 | ||||||||||||||
Derivative Assets | |||||||||||||||||
Foreign Exchange Contracts | Prepaid and other | $ | 3,530 | $ | 332 | ||||||||||||
Foreign Exchange Contracts | Miscellaneous Other Assets | 31 | 982 | ||||||||||||||
$ | 3,561 | $ | 1,314 | ||||||||||||||
Derivative Liabilities | |||||||||||||||||
Foreign Exchange Contracts | Accounts payable and accrued liabilities | $ | 838 | $ | 2,097 | ||||||||||||
Foreign Exchange Contracts | Deferred and other non-current liabilities | 163 | 164 | ||||||||||||||
$ | 1,001 | $ | 2,261 | ||||||||||||||
Effect of Derivative Instruments on the Condensed Consolidated Statements of Income | ' | ||||||||||||||||
The Effect of Derivative Instruments on the Condensed Consolidated Statements of Income | |||||||||||||||||
for the Quarters Ended September 30, 2013 and September 30, 2012 | |||||||||||||||||
Derivatives Not Designated as | Location of Gain or (Loss) Recognized in | Amount of Gain or (Loss) | |||||||||||||||
Recognized in Income on | |||||||||||||||||
Derivative | |||||||||||||||||
Hedging Instruments | Income on Derivative | 2013 | 2012 | ||||||||||||||
Foreign Exchange Contracts | Other Income (Expense) Miscellaneous, net | $ | 2,894 | $ | (81 | ) | |||||||||||
$ | 2,894 | $ | (81 | ) | |||||||||||||
The Effect of Derivative Instruments on the Condensed Consolidated Statements of Income | |||||||||||||||||
for the Nine Months Ended September 30, 2013 and September 30, 2012 | |||||||||||||||||
Derivatives Not Designated as | Location of Gain or (Loss) Recognized in | Amount of Gain or (Loss) | |||||||||||||||
Recognized in Income on | |||||||||||||||||
Derivative | |||||||||||||||||
Hedging Instruments | Income on Derivative | 2013 | 2012 | ||||||||||||||
Foreign Exchange Contracts | Other Income (Expense) Miscellaneous, net | $ | 2,851 | $ | (1,316 | ) | |||||||||||
$ | 2,851 | $ | (1,316 | ) | |||||||||||||
Schedule of offsetting derivative assets and liabilities | ' | ||||||||||||||||
Net Amounts | Gross Amounts not Offset in the | ||||||||||||||||
Gross Amounts | Presented in | Statement of Financial Position | |||||||||||||||
Gross | Offset in the | the Statement of | Financial | Cash Collateral | Net | ||||||||||||
Amount | Financial Position | Financial Position | Instruments | Received | Amount | ||||||||||||
Description | |||||||||||||||||
2013 | |||||||||||||||||
Derivative Assets | $ | 3,561 | -- | $ | 3,561 | -- | -- | $ | 3,561 | ||||||||
Total Assets | $ | 3,561 | -- | $ | 3,561 | -- | -- | $ | 3,561 | ||||||||
Derivative Liabilities | $ | 1,001 | -- | $ | 1,001 | -- | -- | $ | 1,001 | ||||||||
Total Liabilities | $ | 1,001 | -- | $ | 1,001 | -- | -- | $ | 1,001 | ||||||||
2012 | |||||||||||||||||
Derivative Assets | $ | 1,314 | -- | $ | 1,314 | -- | -- | $ | 1,314 | ||||||||
Total Assets | $ | 1,314 | -- | $ | 1,314 | -- | -- | $ | 1,314 | ||||||||
Derivative Liabilities | $ | 2,261 | -- | $ | 2,261 | -- | -- | $ | 2,261 | ||||||||
Total Liabilities | $ | 2,261 | -- | $ | 2,261 | -- | -- | $ | 2,261 |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||
Information related to the calculation of earnings per share | ' | |||||||||||||
Three months ended | ||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||
Diluted | Basic | Diluted | Basic | |||||||||||
Consolidated operations | ||||||||||||||
Income available to common shareholders | $ | 45,264 | $ | 45,264 | $ | 42,127 | $ | 42,127 | ||||||
Average equivalent shares | ||||||||||||||
Shares of common stock | 66,092 | 66,092 | 66,541 | 66,541 | ||||||||||
Effect of dilutive stock based compensation | ||||||||||||||
Stock options | 1,887 | -- | 1,804 | -- | ||||||||||
Restricted stock | 7 | -- | 8 | -- | ||||||||||
Total average equivalent shares | 67,986 | 66,092 | 68,353 | 66,541 | ||||||||||
Net income per share | $ | 0.67 | $ | 0.68 | $ | 0.62 | $ | 0.63 | ||||||
Nine months ended | ||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||
Diluted | Basic | Diluted | Basic | |||||||||||
Consolidated operations | ||||||||||||||
Income available to common stockholders | $ | 135,095 | $ | 135,095 | $ | 127,622 | $ | 127,622 | ||||||
Average equivalent shares | ||||||||||||||
Shares of common stock | 66,222 | 66,222 | 66,439 | 66,439 | ||||||||||
Effect of dilutive stock based compensation | ||||||||||||||
Stock options | 2,041 | -- | 2,259 | -- | ||||||||||
Restricted stock | 10 | -- | 13 | -- | ||||||||||
Total average equivalent shares | 68,273 | 66,222 | 68,711 | 66,439 | ||||||||||
Net income per share | $ | 1.98 | $ | 2.04 | $ | 1.86 | $ | 1.92 |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
Financial information regarding the Company's reportable segments | ' | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Total Revenue: | ||||||||||||||
Beauty + Home | $ | 379,250 | $ | 362,077 | $ | 1,125,261 | $ | 1,115,766 | ||||||
Pharma | 172,360 | 156,044 | 524,248 | 429,278 | ||||||||||
Food + Beverage | 75,531 | 75,245 | 244,434 | 226,751 | ||||||||||
Total Revenue | 627,141 | 593,366 | 1,893,943 | 1,771,795 | ||||||||||
Less: Intersegment Sales: | ||||||||||||||
Beauty + Home | $ | 3,199 | $ | 3,601 | $ | 10,754 | $ | 10,855 | ||||||
Pharma | 90 | (56 | ) | 178 | 156 | |||||||||
Food + Beverage | 208 | 223 | 293 | 1,185 | ||||||||||
Total Intersegment Sales | $ | 3,497 | $ | 3,768 | $ | 11,225 | $ | 12,196 | ||||||
Net Sales: | ||||||||||||||
Beauty + Home | $ | 376,051 | $ | 358,476 | $ | 1,114,507 | $ | 1,104,911 | ||||||
Pharma | 172,270 | 156,100 | 524,070 | 429,122 | ||||||||||
Food + Beverage | 75,323 | 75,022 | 244,141 | 225,566 | ||||||||||
Net Sales | $ | 623,644 | $ | 589,598 | $ | 1,882,718 | $ | 1,759,599 | ||||||
Segment Income (1): | ||||||||||||||
Beauty + Home | $ | 30,943 | $ | 30,050 | $ | 85,697 | $ | 96,569 | ||||||
Pharma | 44,737 | 34,194 | 141,154 | 104,676 | ||||||||||
Food + Beverage | 7,688 | 9,611 | 28,102 | 24,142 | ||||||||||
Restructuring Initiatives and Related Depreciation | (2,664 | ) | -- | (10,257 | ) | 215 | ||||||||
Corporate & Other | (8,113 | ) | (6,443 | ) | (27,605 | ) | (22,048 | ) | ||||||
Income before interest and taxes | $ | 72,591 | $ | 67,412 | $ | 217,091 | $ | 203,554 | ||||||
Interest expense, net | (4,265 | ) | (4,386 | ) | (13,093 | ) | (11,710 | ) | ||||||
Income before income taxes | $ | 68,326 | $ | 63,026 | $ | 203,998 | $ | 191,844 | ||||||
(1) The Company evaluates performance of its business units and allocates resources based upon segment income. Segment income is defined as earnings before net interest expense, certain corporate expenses, restructuring initiatives and related depreciation, and income taxes. Restructuring Initiatives and Related Depreciation includes the following income/(expense) items for the three and nine months ended September 30, 2013 as follows: | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
European Restructuring Plan | ||||||||||||||
Depreciation | $ | 484 | $ | -- | $ | 1,499 | $ | -- | ||||||
Employee Severance and Other Costs | 2,180 | -- | 8,802 | -- | ||||||||||
Prior Year Initiatives | -- | -- | (44 | ) | (215 | ) | ||||||||
Total Restructuring Initiatives and Related Depreciation Expense | $ | 2,664 | $ | -- | $ | 10,257 | $ | (215 | ) | |||||
Restructuring Initiatives and Related Depreciation Expense by Segment | ||||||||||||||
Beauty + Home | $ | 2,664 | $ | -- | $ | 10,280 | $ | (105 | ) | |||||
Pharma | -- | -- | -- | -- | ||||||||||
Food + Beverage | -- | -- | (23 | ) | (110 | ) | ||||||||
Total Restructuring Initiatives and Related Depreciation Expense | $ | 2,664 | $ | -- | $ | 10,257 | $ | (215 | ) | |||||
Restructuring Initiatives and Related Depreciation Expense | ' | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
European Restructuring Plan | ||||||||||||||
Depreciation | $ | 484 | $ | -- | $ | 1,499 | $ | -- | ||||||
Employee Severance and Other Costs | 2,180 | -- | 8,802 | -- | ||||||||||
Prior Year Initiatives | -- | -- | (44 | ) | (215 | ) | ||||||||
Total Restructuring Initiatives and Related Depreciation Expense | $ | 2,664 | $ | -- | $ | 10,257 | $ | (215 | ) | |||||
Restructuring Initiatives and Related Depreciation Expense by Segment | ||||||||||||||
Beauty + Home | $ | 2,664 | $ | -- | $ | 10,280 | $ | (105 | ) | |||||
Pharma | -- | -- | -- | -- | ||||||||||
Food + Beverage | -- | -- | (23 | ) | (110 | ) | ||||||||
Total Restructuring Initiatives and Related Depreciation Expense | $ | 2,664 | $ | -- | $ | 10,257 | $ | (215 | ) |
ACQUISITIONS_Tables
ACQUISITIONS (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
ACQUISITIONS | ' | |||||||||||||
Summary of assets acquired and liabilities assumed as of the acquisition date at estimated fair value | ' | |||||||||||||
July 3, 2012 | ||||||||||||||
Assets | ||||||||||||||
Cash and equivalents | $ | 68,335 | ||||||||||||
Accounts receivable | 23,540 | |||||||||||||
Inventories | 16,826 | |||||||||||||
Prepaid and other | 3,256 | |||||||||||||
Property, plant and equipment | 42,073 | |||||||||||||
Goodwill | 111,031 | |||||||||||||
Intangible assets | 47,134 | |||||||||||||
Other miscellaneous assets | 6,092 | |||||||||||||
Liabilities | ||||||||||||||
Current maturities of long-term obligations | 675 | |||||||||||||
Accounts payable and accrued liabilities | 26,064 | |||||||||||||
Long-term obligations | 885 | |||||||||||||
Deferred income taxes | 22,440 | |||||||||||||
Retirement and deferred compensation plans | 12,049 | |||||||||||||
Net assets acquired | $ | 256,174 | ||||||||||||
Summary of the fair value estimates of the acquired identifiable intangible assets and weighted-average useful lives as of the acquisition date | ' | |||||||||||||
Weighted-Average | Estimated | |||||||||||||
Useful Life | Fair Value | |||||||||||||
(in years) | of Asset | |||||||||||||
Customer relationships | 15 | $ | 7,438 | |||||||||||
Technology | 15 | 37,191 | ||||||||||||
Trademark | 4 | 2,505 | ||||||||||||
Total | $ | 47,134 | ||||||||||||
Schedule of unaudited pro forma financial information | ' | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Net Sales | $ | 623,644 | $ | 589,598 | $ | 1,882,718 | $ | 1,823,660 | ||||||
Net Income Attributable to AptarGroup, Inc. | 45,264 | 44,628 | 135,103 | 138,839 | ||||||||||
Net Income per common share - basic | 0.68 | 0.67 | 2.04 | 2.09 | ||||||||||
Net Income per common share - diluted | 0.67 | 0.65 | 1.98 | 2.02 | ||||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||
Weighted-average assumptions used to estimate fair value of stock options granted | ' | |||||||||||||
Stock Awards Plans: | ||||||||||||||
Nine months ended September 30, | 2013 | 2012 | ||||||||||||
Dividend Yield | 1.8 | % | 1.8 | % | ||||||||||
Expected Stock Price Volatility | 22.7 | % | 22.9 | % | ||||||||||
Risk-free Interest Rate | 1.3 | % | 1.3 | % | ||||||||||
Expected Life of Option (years) | 6.9 | 6.9 | ||||||||||||
Director Stock Option Plans: | ||||||||||||||
Nine months ended September 30, | 2013 | 2012 | ||||||||||||
Dividend Yield | 1.9 | % | 1.7 | % | ||||||||||
Expected Stock Price Volatility | 23 | % | 22.5 | % | ||||||||||
Risk-free Interest Rate | 1.3 | % | 1.3 | % | ||||||||||
Expected Life of Option (years) | 6.9 | 6.9 | ||||||||||||
Summary of option activity | ' | |||||||||||||
Stock Awards Plans | Director Stock Option Plans | |||||||||||||
Weighted Average | Weighted Average | |||||||||||||
Shares | Exercise Price | Shares | Exercise Price | |||||||||||
Outstanding, January 1, 2013 | 7,879,197 | $ | 37.27 | 276,667 | $ | 45.48 | ||||||||
Granted | 1,385,300 | 51.83 | 85,500 | 56.49 | ||||||||||
Exercised | (1,249,180 | ) | 28.6 | (48,333 | ) | 43.11 | ||||||||
Forfeited or expired | (47,399 | ) | 47.24 | -- | -- | |||||||||
Outstanding at September 30, 2013 | 7,967,918 | $ | 41.1 | 313,834 | $ | 48.85 | ||||||||
Exercisable at September 30, 2013 | 5,396,418 | $ | 36.26 | 146,001 | $ | 42.05 | ||||||||
Weighted-Average Remaining Contractual Term (Years): | ||||||||||||||
Outstanding at September 30, 2013 | 6.3 | 7.8 | ||||||||||||
Exercisable at September 30, 2013 | 5.1 | 6.4 | ||||||||||||
Aggregate Intrinsic Value ($000): | ||||||||||||||
Outstanding at September 30, 2013 | $ | 151,630 | $ | 3,541 | ||||||||||
Exercisable at September 30, 2013 | $ | 128,807 | $ | 2,640 | ||||||||||
Intrinsic Value of Options Exercised ($000) During the Nine Months Ended: | ||||||||||||||
September 30, 2013 | $ | 33,123 | $ | 732 | ||||||||||
September 30, 2012 | $ | 34,674 | $ | 937 | ||||||||||
Summary of restricted stock unit activity | ' | |||||||||||||
Weighted-Average | ||||||||||||||
Shares | Grant-Date Fair Value | |||||||||||||
Nonvested at January 1, 2013 | 25,862 | $ | 48.76 | |||||||||||
Granted | 12,448 | 54.92 | ||||||||||||
Vested | (12,629 | ) | 45.2 | |||||||||||
Nonvested at September 30, 2013 | 25,681 | $ | 53.49 |
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
FAIR VALUE | ' | |||||||||||||
Schedule of fair values of financial assets and liabilities | ' | |||||||||||||
As of September 30, 2013, the fair values of our financial assets and liabilities were categorized as follows: | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Assets | ||||||||||||||
Forward exchange contracts (a) | $ | 3,561 | $ | -- | $ | 3,561 | $ | -- | ||||||
Total assets at fair value | $ | 3,561 | $ | -- | $ | 3,561 | $ | -- | ||||||
Liabilities | ||||||||||||||
Forward exchange contracts (a) | $ | 1,001 | $ | -- | $ | 1,001 | $ | -- | ||||||
Total liabilities at fair value | $ | 1,001 | $ | -- | $ | 1,001 | $ | -- | ||||||
As of December 31, 2012, the fair values of our financial assets and liabilities were categorized as follows: | ||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||
Assets | ||||||||||||||
Forward exchange contracts (a) | $ | 1,314 | $ | -- | $ | 1,314 | $ | -- | ||||||
Total assets at fair value | $ | 1,314 | $ | -- | $ | 1,314 | $ | -- | ||||||
Liabilities | ||||||||||||||
Forward exchange contracts (a) | $ | 2,261 | $ | -- | $ | 2,261 | $ | -- | ||||||
Total liabilities at fair value | $ | 2,261 | $ | -- | $ | 2,261 | $ | -- | ||||||
(a) Market approach valuation technique based on observable market transactions of spot and forward rates |
RESTRUCTURING_INITIATIVE_Table
RESTRUCTURING INITIATIVE (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
RESTRUCTURING INITIATIVE | ' | ||||||||||||||||
Activity associated with the entity's restructuring initiatives | ' | ||||||||||||||||
Beginning | Net Charges for | Ending | |||||||||||||||
Reserve at | the Nine Months | Reserve at | |||||||||||||||
12/31/12 | Ended 9/30/13 | Cash Paid | FX Impact | 9/30/13 | |||||||||||||
Employee severance | $ | 3,158 | $ | 6,735 | $ | (6,136 | ) | $ | 95 | $ | 3,852 | ||||||
Other costs | -- | 2,067 | (2,072 | ) | 5 | -- | |||||||||||
Totals | $ | 3,158 | $ | 8,802 | $ | (8,208 | ) | $ | 100 | $ | 3,852 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2013 |
INCOME TAXES | ' |
Current year earnings repatriated | $77 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
INVENTORIES | ' | ' |
Inventories accounted for by using the LIFO method (as a percent) | 19.00% | 19.00% |
Inventories, by component | ' | ' |
Raw materials | $113,673 | $125,889 |
Work in process | 109,062 | 75,261 |
Finished goods | 134,575 | 127,393 |
Total | 357,310 | 328,543 |
Less LIFO reserve | -7,620 | -6,658 |
Total | $349,690 | $321,885 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Changes in the carrying amount of goodwill | ' | ' |
Goodwill | $356,931 | $353,167 |
Accumulated impairment losses | -1,615 | -1,615 |
Goodwill, balance at the beginning of the period | 351,552 | ' |
Foreign currency exchange effects | 3,764 | ' |
Goodwill, balance at the end of the period | 355,316 | ' |
Beauty + Home | ' | ' |
Changes in the carrying amount of goodwill | ' | ' |
Goodwill | 179,956 | 179,890 |
Goodwill, balance at the beginning of the period | 179,890 | ' |
Foreign currency exchange effects | 66 | ' |
Goodwill, balance at the end of the period | 179,956 | ' |
Pharma | ' | ' |
Changes in the carrying amount of goodwill | ' | ' |
Goodwill | 157,538 | 153,978 |
Goodwill, balance at the beginning of the period | 153,978 | ' |
Foreign currency exchange effects | 3,560 | ' |
Goodwill, balance at the end of the period | 157,538 | ' |
Food + Beverage | ' | ' |
Changes in the carrying amount of goodwill | ' | ' |
Goodwill | 17,822 | 17,684 |
Goodwill, balance at the beginning of the period | 17,684 | ' |
Foreign currency exchange effects | 138 | ' |
Goodwill, balance at the end of the period | 17,822 | ' |
Corporate & Other | ' | ' |
Changes in the carrying amount of goodwill | ' | ' |
Goodwill | 1,615 | 1,615 |
Accumulated impairment losses | ($1,615) | ($1,615) |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Amortized intangible assets: | ' | ' | ' | ' | ' |
Gross Carrying Amount | $96,028 | ' | $96,028 | ' | $94,278 |
Accumulated Amortization | -46,271 | ' | -46,271 | ' | -42,318 |
Net Value | 49,757 | ' | 49,757 | ' | 51,960 |
Aggregate amortization expense | 1,266 | 1,232 | 3,748 | 1,898 | ' |
Future estimated amortization expense | ' | ' | ' | ' | ' |
2013 | 1,260 | ' | 1,260 | ' | ' |
2014 | 4,966 | ' | 4,966 | ' | ' |
2015 | 4,786 | ' | 4,786 | ' | ' |
2016 | 4,141 | ' | 4,141 | ' | ' |
2017 | 3,505 | ' | 3,505 | ' | ' |
2018 and thereafter | 31,099 | ' | 31,099 | ' | ' |
Weighted Average | ' | ' | ' | ' | ' |
Amortized intangible assets: | ' | ' | ' | ' | ' |
Amortization Period | ' | ' | '10 years | ' | ' |
Patents | ' | ' | ' | ' | ' |
Amortized intangible assets: | ' | ' | ' | ' | ' |
Gross Carrying Amount | 20,033 | ' | 20,033 | ' | 19,570 |
Accumulated Amortization | -19,542 | ' | -19,542 | ' | -18,894 |
Net Value | 491 | ' | 491 | ' | 676 |
Patents | Weighted Average | ' | ' | ' | ' | ' |
Amortized intangible assets: | ' | ' | ' | ' | ' |
Amortization Period | ' | ' | '7 years | ' | ' |
Acquired Technology | ' | ' | ' | ' | ' |
Amortized intangible assets: | ' | ' | ' | ' | ' |
Gross Carrying Amount | 39,906 | ' | 39,906 | ' | 38,928 |
Accumulated Amortization | -3,325 | ' | -3,325 | ' | -1,298 |
Net Value | 36,581 | ' | 36,581 | ' | 37,630 |
Acquired Technology | Weighted Average | ' | ' | ' | ' | ' |
Amortized intangible assets: | ' | ' | ' | ' | ' |
Amortization Period | ' | ' | '15 years | ' | ' |
License agreements and other | ' | ' | ' | ' | ' |
Amortized intangible assets: | ' | ' | ' | ' | ' |
Gross Carrying Amount | 36,089 | ' | 36,089 | ' | 35,780 |
Accumulated Amortization | -23,404 | ' | -23,404 | ' | -22,126 |
Net Value | $12,685 | ' | $12,685 | ' | $13,654 |
License agreements and other | Weighted Average | ' | ' | ' | ' | ' |
Amortized intangible assets: | ' | ' | ' | ' | ' |
Amortization Period | ' | ' | '5 years | ' | ' |
RETIREMENT_AND_DEFERRED_COMPEN2
RETIREMENT AND DEFERRED COMPENSATION PLANS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Domestic Plans | ' | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' | ' |
Service cost | $2,135,000 | $1,831,000 | $6,405,000 | $5,443,000 |
Interest cost | 1,248,000 | 1,247,000 | 3,744,000 | 3,706,000 |
Expected return on plan assets | -1,443,000 | -1,422,000 | -4,331,000 | -4,227,000 |
Amortization of net loss | 1,276,000 | 978,000 | 3,827,000 | 2,907,000 |
Amortization of prior service cost | ' | 1,000 | 2,000 | 3,000 |
Net periodic benefit cost | 3,216,000 | 2,635,000 | 9,647,000 | 7,832,000 |
Defined benefit plans, employer contributions | 10,000,000 | ' | 10,000,000 | ' |
Foreign Plans | ' | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' | ' |
Service cost | 974,000 | 573,000 | 2,902,000 | 1,601,000 |
Interest cost | 668,000 | 660,000 | 1,991,000 | 1,935,000 |
Expected return on plan assets | -454,000 | -371,000 | -1,353,000 | -1,138,000 |
Amortization of net loss | 353,000 | 116,000 | 1,053,000 | 355,000 |
Amortization of prior service cost | 93,000 | 88,000 | 278,000 | 270,000 |
Net periodic benefit cost | 1,634,000 | 1,066,000 | 4,871,000 | 3,023,000 |
Expected contribution in current fiscal year | 4,300,000 | ' | 4,300,000 | ' |
Defined benefit plans, employer contributions | ' | ' | $2,000,000 | ' |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME/ (LOSS) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated other comprehensive income activity | ' | ' |
Balance at the beginning of the period | $60,683 | $60,318 |
Other comprehensive income (loss) before reclassifications | 16,275 | -9,795 |
Amounts reclassified from accumulated other comprehensive income | 3,333 | 2,421 |
Net current-period other comprehensive (loss)/income | 19,608 | -7,374 |
Balance at the end of the period | 80,291 | 52,944 |
Foreign Currency | ' | ' |
Accumulated other comprehensive income activity | ' | ' |
Balance at the beginning of the period | 120,097 | 100,593 |
Other comprehensive income (loss) before reclassifications | 16,275 | -9,795 |
Net current-period other comprehensive (loss)/income | 16,275 | -9,795 |
Balance at the end of the period | 136,372 | 90,798 |
Defined Benefit Pension Plans | ' | ' |
Accumulated other comprehensive income activity | ' | ' |
Balance at the beginning of the period | -59,248 | -39,907 |
Amounts reclassified from accumulated other comprehensive income | 3,294 | 2,234 |
Net current-period other comprehensive (loss)/income | 3,294 | 2,234 |
Balance at the end of the period | -55,954 | -37,673 |
Other | ' | ' |
Accumulated other comprehensive income activity | ' | ' |
Balance at the beginning of the period | -166 | -368 |
Amounts reclassified from accumulated other comprehensive income | 39 | 187 |
Net current-period other comprehensive (loss)/income | 39 | 187 |
Balance at the end of the period | ($127) | ($181) |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME/ (LOSS) (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Changes in treasury locks | $4,841 | $4,721 | $15,364 | $13,867 |
Net loss on derivatives | -576 | -335 | -2,271 | -2,157 |
Total before tax | -68,326 | -63,026 | -203,998 | -191,844 |
Tax benefit | 23,094 | 20,925 | 68,908 | 64,278 |
Total reclassifications for the period | -45,264 | -42,127 | -135,095 | -127,622 |
Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Total reclassifications for the period | 1,109 | 756 | 3,333 | 2,421 |
Defined Benefit Pension Plans | Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Amortization of net loss | 1,629 | 1,094 | 4,880 | 3,262 |
Amortization of prior service cost | 93 | 89 | 280 | 273 |
Total before tax | 1,722 | 1,183 | 5,160 | 3,535 |
Tax benefit | -622 | -441 | -1,866 | -1,301 |
Total reclassifications for the period | 1,100 | 742 | 3,294 | 2,234 |
Other | Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Total before tax | 14 | 22 | 60 | 57 |
Tax benefit | -5 | -8 | -21 | 130 |
Total reclassifications for the period | 9 | 14 | 39 | 187 |
Other | Treasury locks | Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Changes in treasury locks | 14 | 22 | 60 | 67 |
Other | Foreign exchange contract | Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Net loss on derivatives | ' | ' | ' | ($10) |
DERIVATIVE_INSTRUMENTS_AND_HED2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ' | ' |
Aggregate amount of forward exchange contracts, outstanding | $160,000,000 | ' |
Fair Value of Derivative Instruments | ' | ' |
Derivative Assets | 3,561,000 | 1,314,000 |
Derivative Liabilities | 1,001,000 | 2,261,000 |
Derivative Contracts Not Designated as Hedging Instruments | ' | ' |
Fair Value of Derivative Instruments | ' | ' |
Derivative Assets | 3,561,000 | 1,314,000 |
Derivative Liabilities | 1,001,000 | 2,261,000 |
Derivative Contracts Not Designated as Hedging Instruments | Foreign Exchange Contracts | Prepaid and other | ' | ' |
Fair Value of Derivative Instruments | ' | ' |
Derivative Assets | 3,530,000 | 332,000 |
Derivative Contracts Not Designated as Hedging Instruments | Foreign Exchange Contracts | Miscellaneous Other Assets | ' | ' |
Fair Value of Derivative Instruments | ' | ' |
Derivative Assets | 31,000 | 982,000 |
Derivative Contracts Not Designated as Hedging Instruments | Foreign Exchange Contracts | Accounts payable and accrued liabilities | ' | ' |
Fair Value of Derivative Instruments | ' | ' |
Derivative Liabilities | 838,000 | 2,097,000 |
Derivative Contracts Not Designated as Hedging Instruments | Foreign Exchange Contracts | Deferred and other non-current liabilities | ' | ' |
Fair Value of Derivative Instruments | ' | ' |
Derivative Liabilities | $163,000 | $164,000 |
DERIVATIVE_INSTRUMENTS_AND_HED3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative instruments, gain or (loss) | ' | ' | ' | ' |
Foreign Exchange Contract, Amount of Gain or (Loss) Recognized in Income on Derivative, not designated as hedging instruments | $2,894 | ($81) | $2,851 | ($1,316) |
Foreign Exchange Contracts | ' | ' | ' | ' |
Derivative instruments, gain or (loss) | ' | ' | ' | ' |
Foreign Exchange Contract, Amount of Gain or (Loss) Recognized in Income on Derivative, not designated as hedging instruments | $2,894 | ($81) | $2,851 | ($1,316) |
DERIVATIVE_INSTRUMENTS_AND_HED4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative Assets | ' | ' |
Gross Amount | $3,561 | $1,314 |
Net Amounts Presented in the Statement of Financial Position | 3,561 | 1,314 |
Net Amount | 3,561 | 1,314 |
Derivative Liabilities | ' | ' |
Gross Amount | 1,001 | 2,261 |
Net Amounts Presented in the Statement of Financial Position | 1,001 | 2,261 |
Net Amount | $1,001 | $2,261 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Infringement of patent | ' |
Commitments and contingencies | ' |
Amount of damage assessed on infringement of patents owned by the counterparty within the United States | $0 |
Indemnification agreements | ' |
Commitments and contingencies | ' |
Liabilities recorded under indemnification agreements | $0 |
STOCK_REPURCHASE_PROGRAM_Detai
STOCK REPURCHASE PROGRAM (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 18, 2013 |
STOCK REPURCHASE PROGRAM | ' | ' | ' | ' |
Number of shares repurchased | 600,000 | 1,400,000 | ' | ' |
Aggregate amount of share repurchases (in dollars) | $35,600 | $80,222 | $40,896 | ' |
Number of shares authorized to be repurchased | ' | ' | ' | 4,000,000 |
Remaining authorization to repurchase additional shares | 4,600,000 | 4,600,000 | ' | ' |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
EARNINGS PER SHARE | ' | ' | ' | ' | ' |
Authorized common stock (in shares) | 199,000,000 | ' | 199,000,000 | ' | 199,000,000 |
Common stock, par value (in dollars per share) | $0.01 | ' | $0.01 | ' | $0.01 |
Diluted | ' | ' | ' | ' | ' |
Income available to common shareholders (in dollars) | $45,264 | $42,127 | $135,095 | $127,622 | ' |
Shares of common stock | 66,092,000 | 66,541,000 | 66,222,000 | 66,439,000 | ' |
Total average equivalent shares | 67,986,000 | 68,353,000 | 68,273,000 | 68,711,000 | ' |
Net income per share, diluted (in dollars per share) | $0.67 | $0.62 | $1.98 | $1.86 | ' |
Basic | ' | ' | ' | ' | ' |
Income available to common shareholders (in dollars) | $45,264 | $42,127 | $135,095 | $127,622 | ' |
Shares of common stock | 66,092,000 | 66,541,000 | 66,222,000 | 66,439,000 | ' |
Net income per share, basic (in dollars per share) | $0.68 | $0.63 | $2.04 | $1.92 | ' |
Stock options | ' | ' | ' | ' | ' |
Diluted | ' | ' | ' | ' | ' |
Effect of dilutive stock based compensation (in shares) | 1,887,000 | 1,804,000 | 2,041,000 | 2,259,000 | ' |
Restricted stock | ' | ' | ' | ' | ' |
Diluted | ' | ' | ' | ' | ' |
Effect of dilutive stock based compensation (in shares) | 7,000 | 8,000 | 10,000 | 13,000 | ' |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
segment | ||||
SEGMENT INFORMATION | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 3 | ' |
Financial information regarding the Company's reportable segments | ' | ' | ' | ' |
Total Revenue | $627,141 | $593,366 | $1,893,943 | $1,771,795 |
Less: Intersegment Sales | 3,497 | 3,768 | 11,225 | 12,196 |
Net Sales | 623,644 | 589,598 | 1,882,718 | 1,759,599 |
Income before interest and taxes | 72,591 | 67,412 | 217,091 | 203,554 |
Interest expense, net | -4,265 | -4,386 | -13,093 | -11,710 |
Income before Income Taxes | 68,326 | 63,026 | 203,998 | 191,844 |
Restructuring Initiatives and Related Depreciation Expense by Segment | ' | ' | ' | ' |
Employee Severance and Other Costs | 2,180 | ' | 8,758 | -215 |
Total Restructuring Initiatives and Related Depreciation expense | 2,664 | ' | 10,257 | -215 |
Restructuring Initiatives | ' | ' | ' | ' |
Financial information regarding the Company's reportable segments | ' | ' | ' | ' |
Income before interest and taxes | -2,664 | ' | -10,257 | 215 |
European Restructuring Plan | ' | ' | ' | ' |
Restructuring Initiatives and Related Depreciation Expense by Segment | ' | ' | ' | ' |
Depreciation | 484 | ' | 1,499 | ' |
Employee Severance and Other Costs | 2,180 | ' | 8,802 | ' |
Prior Year Initiatives | ' | ' | ' | ' |
Restructuring Initiatives and Related Depreciation Expense by Segment | ' | ' | ' | ' |
Employee Severance and Other Costs | ' | ' | -44 | -215 |
Beauty + Home | ' | ' | ' | ' |
Financial information regarding the Company's reportable segments | ' | ' | ' | ' |
Total Revenue | 379,250 | 362,077 | 1,125,261 | 1,115,766 |
Less: Intersegment Sales | 3,199 | 3,601 | 10,754 | 10,855 |
Net Sales | 376,051 | 358,476 | 1,114,507 | 1,104,911 |
Income before interest and taxes | 30,943 | 30,050 | 85,697 | 96,569 |
Restructuring Initiatives and Related Depreciation Expense by Segment | ' | ' | ' | ' |
Total Restructuring Initiatives and Related Depreciation expense | 2,664 | ' | 10,280 | -105 |
Pharma | ' | ' | ' | ' |
Financial information regarding the Company's reportable segments | ' | ' | ' | ' |
Total Revenue | 172,360 | 156,044 | 524,248 | 429,278 |
Less: Intersegment Sales | 90 | -56 | 178 | 156 |
Net Sales | 172,270 | 156,100 | 524,070 | 429,122 |
Income before interest and taxes | 44,737 | 34,194 | 141,154 | 104,676 |
Food + Beverage | ' | ' | ' | ' |
Financial information regarding the Company's reportable segments | ' | ' | ' | ' |
Total Revenue | 75,531 | 75,245 | 244,434 | 226,751 |
Less: Intersegment Sales | 208 | 223 | 293 | 1,185 |
Net Sales | 75,323 | 75,022 | 244,141 | 225,566 |
Income before interest and taxes | 7,688 | 9,611 | 28,102 | 24,142 |
Restructuring Initiatives and Related Depreciation Expense by Segment | ' | ' | ' | ' |
Total Restructuring Initiatives and Related Depreciation expense | ' | ' | -23 | -110 |
Corporate & Other | ' | ' | ' | ' |
Financial information regarding the Company's reportable segments | ' | ' | ' | ' |
Income before interest and taxes | ($8,113) | ($6,443) | ($27,605) | ($22,048) |
ACQUISITIONS_Details
ACQUISITIONS (Details) (Stelmi Group, USD $) | 0 Months Ended |
Jul. 03, 2012 | |
item | |
Stelmi Group | ' |
Acquisitions | ' |
Number of manufacturing plants acquired | 2 |
Cost of acquired entity | $188,000,000 |
Assets | ' |
Cash and equivalents | 68,335,000 |
Accounts receivable | 23,540,000 |
Inventories | 16,826,000 |
Prepaid and other | 3,256,000 |
Property, plant and equipment | 42,073,000 |
Goodwill | 111,031,000 |
Intangible assets | 47,134,000 |
Other miscellaneous assets | 6,092,000 |
Liabilities | ' |
Current maturities of long-term obligations | 675,000 |
Accounts payable and accrued liabilities | 26,064,000 |
Long-term obligations | 885,000 |
Deferred income taxes | 22,440,000 |
Retirement and deferred compensation plans | 12,049,000 |
Net assets acquired | $256,174,000 |
ACQUISITIONS_Details_2
ACQUISITIONS (Details 2) (Stelmi Group, USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Jul. 03, 2012 |
Acquired finite-lived intangible assets | ' |
Estimated Fair Value of Asset | $47,134 |
Customer relationships | ' |
Acquired finite-lived intangible assets | ' |
Weighted-average useful life | '15 years |
Estimated Fair Value of Asset | 7,438 |
Technology | ' |
Acquired finite-lived intangible assets | ' |
Weighted-average useful life | '15 years |
Estimated Fair Value of Asset | 37,191 |
Trademark | ' |
Acquired finite-lived intangible assets | ' |
Weighted-average useful life | '4 years |
Estimated Fair Value of Asset | $2,505 |
ACQUISITIONS_Details_3
ACQUISITIONS (Details 3) (Stelmi Group, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Stelmi Group | ' | ' | ' | ' |
Unaudited pro forma financial information | ' | ' | ' | ' |
Net Sales | $623,644 | $589,598 | $1,882,718 | $1,823,660 |
Net Income Attributable to AptarGroup, Inc. | $45,264 | $44,628 | $135,103 | $138,839 |
Net Income per common share - basic | $0.68 | $0.67 | $2.04 | $2.09 |
Net Income per common share - diluted | $0.67 | $0.65 | $1.98 | $2.02 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
STOCK-BASED COMPENSATION | ' | ' |
Proceeds from stock option exercises | $38,368,000 | $35,239,000 |
Stock options | ' | ' |
STOCK-BASED COMPENSATION | ' | ' |
Award vesting period | '3 years | ' |
Expiration period | '10 years | ' |
Compensation expense | 11,500,000 | 10,800,000 |
Compensation expense, net of tax | 7,700,000 | 7,200,000 |
Income tax benefit related to compensation expense | 3,800,000 | 3,600,000 |
Weighted-average fair value of stock options granted (in dollars per share) | $10.16 | $10.35 |
Grant date fair value of options vested | 12,900,000 | 12,100,000 |
Proceeds from stock option exercises | 38,400,000 | ' |
Tax benefit realized for the tax deduction from option exercises | 7,900,000 | ' |
Unrecognized compensation cost expected to be recognized in future periods | 12,000,000 | ' |
Weighted-average period over which compensation cost is expected to be recognized | '1 year 6 months | ' |
Stock options | Selling, research & development and administrative expenses | ' | ' |
STOCK-BASED COMPENSATION | ' | ' |
Compensation expense, net of tax | 10,200,000 | 9,600,000 |
Stock Awards Plans | Stock options | ' | ' |
Assumptions used to estimate fair value of stock options granted | ' | ' |
Dividend Yield (as a percent) | 1.80% | 1.80% |
Expected Stock Price Volatility (as a percent) | 22.70% | 22.90% |
Risk-free Interest Rate (as a percent) | 1.30% | 1.30% |
Expected Life of Option | '6 years 10 months 24 days | '6 years 10 months 24 days |
Stock options activity | ' | ' |
Outstanding at the beginning of the period (in shares) | 7,879,197 | ' |
Granted (in shares) | 1,385,300 | ' |
Exercised (in shares) | -1,249,180 | ' |
Forfeited or expired (in shares) | -47,399 | ' |
Outstanding at the end of the period (in shares) | 7,967,918 | ' |
Exercisable at the end of the period (in shares) | 5,396,418 | ' |
Weighted Average Exercise Price | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $37.27 | ' |
Granted (in dollars per share) | $51.83 | ' |
Exercised (in dollars per share) | $28.60 | ' |
Forfeited or expired (in dollars per share) | $47.24 | ' |
Outstanding at the end of the period (in dollars per share) | $41.10 | ' |
Exercisable at the end of the period (in dollars per share) | $36.26 | ' |
Weighted-Average Remaining Contractual Term (Years): | ' | ' |
Outstanding at the end of the period | '6 years 3 months 18 days | ' |
Exercisable at the end of the period | '5 years 1 month 6 days | ' |
Aggregate Intrinsic Value: | ' | ' |
Outstanding at the end of the period | 151,630,000 | ' |
Exercisable at the end of the period | 128,807,000 | ' |
Intrinsic Value of Options Exercised | 33,123,000 | 34,674,000 |
Stock Awards Plans | Restricted stock units | ' | ' |
STOCK-BASED COMPENSATION | ' | ' |
Award vesting period | '3 years | ' |
Compensation expense, net of tax | 574,000 | 438,000 |
Unrecognized compensation cost expected to be recognized in future periods | 611,000 | ' |
Weighted-average period over which compensation cost is expected to be recognized | '1 year 6 months | ' |
Restricted stock unit activity | ' | ' |
Balance at the beginning of the period (in shares) | 25,862 | ' |
Granted (in shares) | 12,448 | ' |
Vested (in shares) | -12,629 | ' |
Balance at the end of the period (in shares) | 25,681 | ' |
Weighted-Average Grant-Date Fair Value | ' | ' |
Nonvested at the beginning of the period (in dollars per share) | $48.76 | ' |
Granted (in dollars per share) | $54.92 | ' |
Vested (in dollars per share) | $45.20 | ' |
Nonvested at the end of the period (in dollars per share) | $53.49 | ' |
Fair value of units vested | 571,000 | 316,000 |
Intrinsic value of units vested | 661,000 | 448,000 |
Director Stock Option Plans | Stock options | ' | ' |
STOCK-BASED COMPENSATION | ' | ' |
Weighted-average fair value of stock options granted (in dollars per share) | $10.89 | $10.59 |
Assumptions used to estimate fair value of stock options granted | ' | ' |
Dividend Yield (as a percent) | 1.90% | 1.70% |
Expected Stock Price Volatility (as a percent) | 23.00% | 22.50% |
Risk-free Interest Rate (as a percent) | 1.30% | 1.30% |
Expected Life of Option | '6 years 10 months 24 days | '6 years 10 months 24 days |
Stock options activity | ' | ' |
Outstanding at the beginning of the period (in shares) | 276,667 | ' |
Granted (in shares) | 85,500 | ' |
Exercised (in shares) | -48,333 | ' |
Outstanding at the end of the period (in shares) | 313,834 | ' |
Exercisable at the end of the period (in shares) | 146,001 | ' |
Weighted Average Exercise Price | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $45.48 | ' |
Granted (in dollars per share) | $56.49 | ' |
Exercised (in dollars per share) | $43.11 | ' |
Outstanding at the end of the period (in dollars per share) | $48.85 | ' |
Exercisable at the end of the period (in dollars per share) | $42.05 | ' |
Weighted-Average Remaining Contractual Term (Years): | ' | ' |
Outstanding at the end of the period | '7 years 9 months 18 days | ' |
Exercisable at the end of the period | '6 years 4 months 24 days | ' |
Aggregate Intrinsic Value: | ' | ' |
Outstanding at the end of the period | 3,541,000 | ' |
Exercisable at the end of the period | 2,640,000 | ' |
Intrinsic Value of Options Exercised | $732,000 | $937,000 |
INCOME_TAX_UNCERTAINTIES_Detai
INCOME TAX UNCERTAINTIES (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
INCOME TAX UNCERTAINTIES | ' | ' |
Income tax uncertainties | $8.40 | $8.50 |
Change in income tax uncertainties | 0.1 | ' |
Amount of income tax uncertainties that, if recognized, would impact the effective tax rate | 8 | 8.1 |
Decrease in liability for uncertain tax positions, high end of range | $5 | ' |
Number of months liability for uncertain tax positions will decrease | '12 months | ' |
FAIR_VALUE_Details
FAIR VALUE (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Liabilities | ' | ' |
Fair value of long-term obligations | $370,000,000 | $382,000,000 |
Assets and liabilities measured at fair value on recurring basis | Total | ' | ' |
Assets | ' | ' |
Forward exchange contracts, assets | 3,561,000 | 1,314,000 |
Total assets at fair value | 3,561,000 | 1,314,000 |
Liabilities | ' | ' |
Forward exchange contracts, liabilities | 1,001,000 | 2,261,000 |
Total liabilities at fair value | 1,001,000 | 2,261,000 |
Assets and liabilities measured at fair value on recurring basis | Level 2 | ' | ' |
Assets | ' | ' |
Forward exchange contracts, assets | 3,561,000 | 1,314,000 |
Total assets at fair value | 3,561,000 | 1,314,000 |
Liabilities | ' | ' |
Forward exchange contracts, liabilities | 1,001,000 | 2,261,000 |
Total liabilities at fair value | $1,001,000 | $2,261,000 |
RESTRUCTURING_INITIATIVE_Detai
RESTRUCTURING INITIATIVE (Details) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 11 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 01, 2012 | Nov. 01, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
USD ($) | USD ($) | USD ($) | European Restructuring Plan | European Restructuring Plan | European Restructuring Plan | European Restructuring Plan | European Restructuring Plan | Employee severance | Other costs | |
USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | European Restructuring Plan | European Restructuring Plan | ||||
item | USD ($) | USD ($) | ||||||||
Restructuring initiatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of facilities involved in restructuring plan | ' | ' | ' | 12 | 12 | ' | ' | ' | ' | ' |
Number of facilities closed | ' | ' | ' | 1 | 1 | ' | ' | ' | ' | ' |
Number of employees impacted by closure of facilities | ' | ' | ' | 170 | 170 | ' | ' | ' | ' | ' |
Estimated total cost associated with the plan | ' | ' | ' | $19,000,000 | € 14,000,000 | ' | ' | ' | ' | ' |
Non-cash expenses | ' | ' | ' | 4,000,000 | 3,000,000 | ' | ' | ' | ' | ' |
Cumulative expense incurred to date | ' | ' | ' | ' | ' | ' | ' | 15,200,000 | ' | ' |
Restructuring reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve, balance at the beginning of the period | ' | ' | ' | ' | ' | ' | 3,158,000 | ' | 3,158,000 | ' |
Net Charges | 2,180,000 | 8,758,000 | -215,000 | ' | ' | 2,180,000 | 8,802,000 | ' | 6,735,000 | 2,067,000 |
Cash Paid | ' | ' | ' | ' | ' | ' | -8,208,000 | ' | -6,136,000 | -2,072,000 |
FX Impact | ' | ' | ' | ' | ' | ' | 100,000 | ' | 95,000 | 5,000 |
Restructuring reserve, balance at the end of the period | ' | ' | ' | ' | ' | 3,852,000 | 3,852,000 | 3,852,000 | 3,852,000 | ' |
Accelerated depreciation | ' | ' | ' | ' | ' | $484,000 | $1,499,000 | ' | ' | ' |