SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

We are organized into three reporting segments. Operations that sell proprietary dispensing systems, drug delivery systems, sealing solutions and services to the prescription drug, consumer health care, injectables, active material science solutions and digital health markets form our Aptar Pharma segment. Operations that sell dispensing systems and sealing solutions to the beauty, personal care and home care markets form our Aptar Beauty segment. Operations that sell dispensing systems, sealing solutions and food service trays to the food, beverage, personal care, home care, beauty and healthcare markets form our Aptar Closures segment. Aptar Pharma and Aptar Beauty are named for the markets they serve with multiple product platforms, while Aptar Closures is named primarily for a single product platform that serves all available markets.

The accounting policies of the segments are the same as those described in Part II, Item 8, Note 1 - Summary of Significant Accounting Policies in our Annual Report on Form 10-K for the year ended December 31, 2023. We evaluate performance of our reporting segments and allocate resources based upon Adjusted EBITDA. Adjusted EBITDA is defined as earnings before net interest, taxes, depreciation, amortization, 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.

Financial information regarding our reporting segments is shown below:

Three Months Ended March 31,	2024		2023
Total Sales:
Aptar Pharma	$	407,490	$	356,111
Aptar Beauty	334,880		333,338
Aptar Closures	182,697		180,439
Total Sales	$	925,067	$	869,888
Less: Intersegment Sales:
Aptar Pharma	$	197	$	65
Aptar Beauty	7,560		6,949
Aptar Closures	1,862		2,807
Total Intersegment Sales	$	9,619	$	9,821
Net Sales:
Aptar Pharma	$	407,293	$	356,046
Aptar Beauty	327,320		326,389
Aptar Closures	180,835		177,632
Net Sales	$	915,448	$	860,067
Adjusted EBITDA (1):
Aptar Pharma	$	132,178	$	109,298
Aptar Beauty	41,134		37,205
Aptar Closures	27,161		26,008
Corporate & Other, unallocated	(21,641)		(18,836)
Acquisition-related costs (2)	—		(255)
Restructuring Initiatives (3)	(3,480)		(11,524)
Net unrealized investment gain (4)	592		188
Depreciation and amortization	(64,349)		(59,259)
Interest Expense	(10,175)		(10,228)
Interest Income	2,898		672
Income before Income Taxes	$	104,318	$	73,269

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(1)We evaluate performance of our reporting segments and allocate resources based upon Adjusted EBITDA. Adjusted EBITDA is defined as earnings before net interest, taxes, depreciation, amortization, unallocated corporate expenses, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items.

(2)Acquisition-related costs include transaction costs (and purchase accounting adjustments related to acquisitions and investments) (see Note 17 – Acquisitions for further details).

(3)Restructuring Initiatives includes expense items for the three months ended March 31, 2024 and 2023 as follows (see Note 19 – Restructuring Initiatives for further details):

Three Months Ended March 31,	2024		2023
Restructuring Initiatives by Plan:
Optimization initiative	$	3,497	$	11,540
Prior year initiatives	(17)		(16)
Total Restructuring Initiatives	$	3,480	$	11,524
Restructuring Initiatives by Segment:
Aptar Pharma	$	24	$	1,131
Aptar Beauty	2,710		9,291
Aptar Closures	760		522
Corporate & Other	(14)		580
Total Restructuring Initiatives	$	3,480	$	11,524

(4)Net unrealized investment gain (loss) represents the change in fair value of our investment in PCT (see Note 18 – Investment in Equity Securities for further details).