v3.25.0.1
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Effective January 1, 2023, we combined all of our closures technologies into one segment, and realigned and renamed two of our three segments. Our reporting segments became: Aptar Pharma, Aptar Beauty and Aptar Closures. Aptar Pharma and Aptar Beauty are named for the markets they serve with multiple product platforms, while Aptar Closures is named primarily for a single product platform that serves all available markets.
The Aptar Closures business serves multiple markets, including food, beverage, personal care, home care, beauty and healthcare. Aptar's food protection business and our elastomeric flow-control technology business continue to report through the Aptar Closures segment. The realignment brings us closer to how our customers are structured and operate their business. At the same time, we simplified and focused our Beauty segment to better leverage our complex spray and dispensing solutions for prestige and mass brands in the beauty, personal care and home care markets.
The segment realignment had no impact on our Consolidated Statements of Income, Balance Sheets, and Cash Flows. Segment financial information for the prior periods has been recast to conform to the current presentation.
The accounting policies of the segments are the same as those described in Note 1 – Summary of Significant Accounting Policies. We adopted ASU 2023-07, Improvement to Reportable Segment Disclosures which requires enhanced segment disclosure. Our chief operating decision maker, ("CODM") is our President and Chief Executive Officer, Stephan Tanda. Our CODM is provided operating reports from each of our reportable segments which include or can easily derive significant segment expenses identified as selling, research & development and administrative expenses and cost of sales by segment. Additionally, the other segment items is primarily comprised of foreign currency gains or losses from operations and other non-operating activity. Our CODM evaluates performance of our reporting segments and allocates resources based upon Adjusted EBITDA. Adjusted EBITDA is defined as earnings before net interest, taxes, depreciation, amortization, unallocated corporate expenses, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items. Adjusted EBITDA provides useful information regarding performance of each segment as it reflects profitability and performance of each segment on a consistent and comparable basis, and our CODM considers budget-to-actual variances on a monthly basis when making decisions supporting capital resource allocation, including in connection with development, acquisition and disposition activities in each segment.
Financial information regarding our reporting segments is shown below:
In thousands
Year Ended December 31,202420232022
Total Sales:
Aptar Pharma$1,644,012 $1,521,837 $1,372,449 
Aptar Beauty1,252,904 1,297,477 1,246,018 
Aptar Closures721,564 706,847 748,055 
Total Sales$3,618,480 $3,526,161 $3,366,522 
Less: Intersegment Sales:
Aptar Pharma$860 $844 $11,193 
Aptar Beauty27,174 29,780 23,483 
Aptar Closures7,556 8,087 9,597 
Total Intersegment Sales$35,590 $38,711 $44,273 
Net Sales:
Aptar Pharma$1,643,152 $1,520,993 $1,361,256 
Aptar Beauty1,225,730 1,267,697 1,222,535 
Aptar Closures714,008 698,760 738,458 
Net Sales$3,582,890 $3,487,450 $3,322,249 
Less:
Cost of Sales (exclusive of depreciation and amortization):
Aptar Pharma834,595 797,542 709,873 
Aptar Beauty884,433 922,223 891,619 
Aptar Closures511,409 507,866 560,300 
Selling, Research & Development and Administrative:
Aptar Pharma241,357 221,808 211,101 
Aptar Beauty183,903 192,831 180,910 
Aptar Closures89,913 87,930 92,697 
Other Segment Items:
Aptar Pharma(1,171)(990)(1,340)
Aptar Beauty(2,515)(11,073)(1,881)
Aptar Closures(1,456)(729)(648)
Adjusted EBITDA (1):
Aptar Pharma$568,371 $502,633 $441,622 
Aptar Beauty159,909 163,716 151,887 
Aptar Closures114,142 103,693 86,109 
Adjusted EBITDA for Reportable Segments
$842,422 $770,042 $679,618 
Corporate & Other, unallocated
(67,498)(62,320)(62,930)
Acquisition-related costs (2)(140)(480)(231)
Restructuring Initiatives (3)(13,002)(45,004)(6,597)
Curtailment gain related to restructuring initiatives (4)1,851 — — 
Net unrealized investment gain (loss) (5)
1,713 (2,775)(3,323)
Depreciation and amortization(263,784)(248,593)(233,706)
Interest Expense(43,898)(40,418)(40,827)
Interest Income12,101 4,373 2,700 
Income before Income Taxes$469,765 $374,825 $334,704 
In thousands
Year Ended December 31,202420232022
Depreciation and Amortization:
Aptar Pharma$120,429 $109,366 $94,396 
Aptar Beauty82,931 83,399 80,498 
Aptar Closures57,326 52,095 52,866 
Depreciation and Amortization for Reportable Segments
260,686 244,860 227,760 
Corporate & Other3,098 3,733 5,946 
Depreciation and Amortization$263,784 $248,593 $233,706 
Capital Expenditures:
Aptar Pharma$148,261 $196,083 $164,396 
Aptar Beauty64,571 83,872 74,203 
Aptar Closures45,766 52,160 44,223 
Capital Expenditures for Reportable Segments
258,598 332,115 282,822 
Corporate & Other23,630 14,729 29,491 
Transfer of Corporate Expenditures (6)
(5,747)(34,502)(1,886)
Capital Expenditures$276,481 $312,342 $310,427 
Total Assets:
Aptar Pharma$2,057,586 $2,111,779 $1,872,843 
Aptar Beauty1,392,491 1,412,203 1,398,813 
Aptar Closures746,127 765,930 779,654 
Total Assets for Reportable Segments
4,196,204 4,289,912 4,051,310 
Corporate & Other236,074 161,978 152,148 
Total Assets$4,432,278 $4,451,890 $4,203,458 
(1)We evaluate performance of our reporting segments and allocate resources based upon Adjusted EBITDA. Adjusted EBITDA is defined as earnings before net interest, taxes, depreciation, amortization, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items.
(2)Acquisition-related costs include transaction costs (and purchase accounting adjustments related to acquisitions and investments) (see Note 19 - Acquisitions and Note 20 – Investments in Equity Securities for further details).
(3)Restructuring Initiatives includes expense items for the years ended December 31, 2024, 2023 and 2022 as follows (see Note 21 – Restructuring Initiatives for further details):
In thousands
Year Ended December 31,202420232022
Restructuring Initiatives by Plan:
Optimization initiative$13,019 $45,445 $6,224 
Prior year initiatives(17)(441)373 
Total Restructuring Initiatives$13,002 $45,004 $6,597 
Restructuring Initiatives by Segment:
Aptar Pharma$589 $4,852 $— 
Aptar Beauty8,041 20,683 5,539 
Aptar Closures3,835 17,927 1,058 
Corporate & Other537 1,542 — 
Total Restructuring Initiatives$13,002 $45,004 $6,597 
(4)The curtailment gain is included in the line miscellaneous income (expense), net in the Consolidated Statements of Income (see Note 9 - Retirement and Deferred Compensation Plans).
(5)Net unrealized investment gain (loss) represents the change in fair value of our investment in PCT (see Note 20 – Investment in Equity Securities for further details).
(6)The transfer of corporate expenditures represents amounts of projects managed by corporate for the benefit of specific entities within each segment. Once the projects are complete, all related costs are allocated from corporate to and paid by the appropriate entity and the associated assets are then depreciated at the entity level. The increase in 2023 relates to a project build in Suzhou, China.
Geographic Information
The following are net sales and long-lived asset information by geographic area and product information for the years ended December 31, 2024, 2023 and 2022:
202420232022
Net Sales to Unaffiliated Customers (1):
United States$1,037,968 $949,248 $972,920 
Europe:
France499,795 541,333 487,650 
Germany169,891 160,812 163,277 
Italy180,101 200,817 149,725 
Spain171,779 175,101 149,987 
Other Europe748,302 727,662 665,537 
Total Europe1,769,868 1,805,725 1,616,176 
China155,502 146,026 177,855 
Other Foreign Countries619,552 586,451 555,298 
Total$3,582,890 $3,487,450 $3,322,249 
Property, Plant and Equipment, Net
United States$349,255 $357,729 $346,382 
Europe:
France527,570 550,738 482,091 
Germany229,637 225,860 194,898 
Italy44,087 42,240 42,522 
Other Europe66,546 63,864 53,317 
Total Europe867,840 882,702 772,828 
China105,613 112,017 98,469 
Other Foreign Countries124,442 125,615 125,985 
Total$1,447,150 $1,478,063 $1,343,664 
(1)Sales are attributed to countries based upon shipped to location.
No single customer or group of affiliated customers represents greater than 4% of our net sales in 2024 and 5% of our net sales in 2023 or 2022.