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SEGMENT INFORMATION | 6 Months Ended
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Jun. 30, 2023
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION During the year ended December 31, 2022, our organizational structure consisted of three market-focused business segments: Pharma, Beauty+Home and Food+Beverage. Effective January 1, 2023, we realigned two of our segments, allowing us to better serve our customers and positioning us for long-term profitable growth. We continue to have three reporting segments; 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. We combined all of our closures operations into a single segment - Aptar Closures. The Aptar Closures business serves multiple markets, including food, beverage, personal care, home care, beauty and healthcare. Closures that were developed in Beauty + Home moved to Aptar Closures together with the operations of legacy Food + Beverage. Aptar's food protection business and our elastomeric flow-control technology business continue to report through the Aptar Closures segment. At the same time, we have simplified and focused our Beauty + Home segment to better leverage our complex spray and dispensing solutions for prestige and premium brands in the beauty and personal care markets. For many of our customers, personal care products are considered part of "beauty" and so we renamed this segment, simply, Aptar Beauty. 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 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, 2022. 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 June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Total Sales: |  |  |  |  |  |  |
Aptar Pharma | $ | 391,010 |  |  | $ | 345,369 |  |  | $ | 747,121 |  |  | $ | 692,041 |
Aptar Beauty | 338,404 |  |  | 323,794 |  |  | 671,742 |  |  | 639,162 |
Aptar Closures | 177,471 |  |  | 189,166 |  |  | 357,910 |  |  | 385,234 |
Total Sales | $ | 906,885 |  |  | $ | 858,329 |  |  | $ | 1,776,773 |  |  | $ | 1,716,437 |
Less: Intersegment Sales: |  |  |  |  |  |  |
Aptar Pharma | $ | 310 |  |  | $ | 5,138 |  |  | $ | 375 |  |  | $ | 9,348 |
Aptar Beauty | 8,817 |  |  | 6,127 |  |  | 15,766 |  |  | 12,415 |
Aptar Closures | 1,852 |  |  | 2,521 |  |  | 4,659 |  |  | 5,199 |
Total Intersegment Sales | $ | 10,979 |  |  | $ | 13,786 |  |  | $ | 20,800 |  |  | $ | 26,962 |
Net Sales: |  |  |  |  |  |  |
Aptar Pharma | $ | 390,700 |  |  | $ | 340,231 |  |  | $ | 746,746 |  |  | $ | 682,693 |
Aptar Beauty | 329,587 |  |  | 317,667 |  |  | 655,976 |  |  | 626,747 |
Aptar Closures | 175,619 |  |  | 186,645 |  |  | 353,251 |  |  | 380,035 |
Net Sales | $ | 895,906 |  |  | $ | 844,543 |  |  | $ | 1,755,973 |  |  | $ | 1,689,475 |
Adjusted EBITDA (1): |  |  |  |  |  |  |
Aptar Pharma | $ | 125,866 |  |  | $ | 111,006 |  |  | $ | 235,164 |  |  | $ | 226,558 |
Aptar Beauty | 43,100 |  |  | 41,230 |  |  | 80,305 |  |  | 75,780 |
Aptar Closures | 27,772 |  |  | 21,354 |  |  | 53,780 |  |  | 45,537 |
Corporate & Other, unallocated | (15,501) |  |  | (13,663) |  |  | (34,337) |  |  | (31,633) |
Acquisition-related costs (2) | — |  |  | — |  |  | (255) |  |  | — |
Restructuring Initiatives (3) | (1,943) |  |  | (428) |  |  | (13,467) |  |  | (719) |
Net unrealized investment gain (loss) (4) | 2,891 |  |  | (483) |  |  | 3,079 |  |  | (2,574) |
Depreciation and amortization | (62,267) |  |  | (58,552) |  |  | (121,526) |  |  | (117,217) |
Interest Expense | (9,688) |  |  | (11,982) |  |  | (19,916) |  |  | (20,912) |
Interest Income | 648 |  |  | 989 |  |  | 1,320 |  |  | 1,277 |
Income before Income Taxes | $ | 110,878 |  |  | $ | 89,471 |  |  | $ | 184,147 |  |  | $ | 176,097 |
________________________________________________ (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 and six months ended June 30, 2023 and 2022 as follows (see Note 19 – Restructuring Initiatives for further details):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Restructuring Initiatives by Plan: |  |  |  |  |  |  |
Optimization initiative | $ | 1,943 |  |  | $ | — |  |  | $ | 13,483 |  |  | $ | — |
Prior year initiatives | — |  |  | 428 |  |  | (16) |  |  | 719 |
Total Restructuring Initiatives | $ | 1,943 |  |  | $ | 428 |  |  | $ | 13,467 |  |  | $ | 719 |
Restructuring Initiatives by Segment: |  |  |  |  |  |  |
Aptar Pharma | $ | 434 |  |  | $ | — |  |  | $ | 1,565 |  |  | $ | — |
Aptar Beauty | 479 |  |  | 423 |  |  | 9,770 |  |  | 534 |
Aptar Closures | 440 |  |  | 5 |  |  | 962 |  |  | 185 |
Corporate & Other | 590 |  |  | — |  |  | 1,170 |  |  | — |
Total Restructuring Initiatives | $ | 1,943 |  |  | $ | 428 |  |  | $ | 13,467 |  |  | $ | 719 |
(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).

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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