v3.26.1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
We maintain a foreign exchange risk management policy designed to establish a framework to protect the value of our non-functional currency denominated transactions from adverse changes in exchange rates. Sales of our products can be denominated in a currency different from the currency in which the related costs to produce the product are denominated. Changes in exchange rates on such inter-country sales or intercompany loans can impact our results of operations. Our policy is not to engage in speculative foreign currency hedging activities, but to minimize our net foreign currency transaction exposure, defined as firm commitments and transactions recorded and denominated in currencies other than the functional currency. We may use foreign currency forward exchange contracts, options and cross-currency swaps to economically hedge these risks.
For derivative instruments designated as hedges, we formally document the nature and relationships between the hedging instruments and the hedged items, as well as the risk management objectives, strategies for undertaking the various hedge transactions, and the method of assessing hedge effectiveness at inception. Quarterly thereafter, we formally assess whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the fair value or cash flows of the hedged item. Additionally, in order to designate any derivative instrument as a hedge of an anticipated transaction, the significant characteristics and expected terms of any anticipated transaction must be specifically identified, and it must be probable that the anticipated transaction will occur. All derivative financial instruments used as hedges are recorded at fair value in the Condensed Consolidated Balance Sheets (See Note 11 - Fair Value).
Net Investment Hedge
A significant number of our operations are located outside of the United States. Because of this, movements in exchange rates may have a significant impact on the translation of the financial condition and results of operations of our foreign subsidiaries. A weakening U.S. dollar relative to foreign currencies has an additive translation effect on our financial statements. Conversely, a strengthening U.S. dollar has a dilutive effect. In some cases we maintain debt in these subsidiaries to offset the net asset exposure. In the event we plan on a full or partial liquidation of any of our foreign subsidiaries where our net investment is likely to be monetized, we will consider hedging the currency exposure associated with such a transaction.
The Company enters into cross-currency swap contracts to hedge its net investment in euro-denominated assets against future volatility in the exchange rate between the U.S. dollar and the euro. As of June 30, 2026, Aptar had cross-currency swap contracts with an aggregate notional amount of €350 million ($379.7 million), including €150 million ($176.2 million) of swaps entered into during the second quarter of 2026. These instruments are designated as net investment hedges and we elected the spot method. Gains and losses arising from the fair value adjustments of the cross-currency swap agreements are recorded in accumulated other comprehensive (loss) income as the swaps are effective in hedging the designated risk. Our cross-currency swap contracts expire at various dates through September 2029. As of June 30, 2026, the fair value of the cross currency swap contracts was a $24.7 million liability.
As of June 30, 2026, we have recorded the fair value of foreign currency forward exchange contracts of $0.6 million in prepaid and other and $1.0 million in accounts payable, accrued and other liabilities on the Condensed Consolidated Balance Sheets. All forward exchange contracts outstanding as of June 30, 2026 had an aggregate notional contract amount of $141.4 million.
Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025
June 30, 2026December 31, 2025
Balance Sheet
Location
Derivatives Designated as Hedging InstrumentsDerivatives not Designated as Hedging InstrumentsDerivatives Designated as Hedging InstrumentsDerivatives not Designated as Hedging Instruments
Derivative Assets
Foreign Exchange ContractsPrepaid and other$— $625 $— $298 
$— $625 $— $298 
Derivative Liabilities
Foreign Exchange ContractsAccounts payable, accrued and other liabilities$— $1,045 $— $632 
Cross-Currency Swap Contract (1)
Deferred and other non-current liabilities
24,654 — 32,542 — 
$24,654 $1,045 $32,542 $632 
__________________________
(1)This cross-currency swap agreement has a foreign exchange component.
The Effect of Derivatives Designated as Hedging Instruments on Accumulated Other Comprehensive Income (Loss) for the Three Months Ended June 30, 2026 and 2025
Derivatives Designated as Hedging InstrumentsAmount of Gain (Loss)
Recognized in
Other Comprehensive
Income on Derivative		Location of (Loss)
Gain Recognized
in Income on
Derivatives		Amount of Gain (Loss)
Reclassified from
Accumulated
Other Comprehensive
Income on Derivative		Total Amount of Affected Income Statement Line Item
2026202520262025
Cross currency swap agreement:
Foreign exchange component$1,890 $(14,138)Miscellaneous, net$— $— $(802)
$1,890 $(14,138)$— $— 
The Effect of Derivatives Designated as Hedging Instruments on Accumulated Other Comprehensive Income (Loss) for the Six Months Ended June 30, 2026 and 2025
Derivatives Designated as Hedging Instruments
Amount of Gain (Loss)
Recognized in
Other Comprehensive
Income on Derivative
Location of Gain (Loss) 
Recognized
in Income on
Derivatives
Amount of Gain (Loss)
Reclassified from
Accumulated
Other Comprehensive
Income on Derivative
Total Amount of Affected Income Statement Line Item
2026202520262025
Cross-currency swap agreement:
Foreign exchange component$5,956 $(18,005)Miscellaneous, net$— $— $(855)
$5,956 $(18,005)$— $— 
The Effect of Derivatives Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Income for the Three Months Ended June 30, 2026 and 2025
Derivatives Not Designated
as Hedging Instruments		Location of (Loss) Gain Recognized
in Income on Derivatives		Amount of (Loss) Gain
Recognized in Income
on Derivatives
20262025
Foreign Exchange ContractsOther (Expense) Income:
Miscellaneous, net		$122 $(496)
$122 $(496)
The Effect of Derivatives Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Income for the Six Months Ended June 30, 2026 and 2025
Derivatives Not Designated
as Hedging Instruments
Location of (Loss) Gain Recognized
in Income on Derivatives
Amount of (Loss) Gain
Recognized in Income
on Derivatives
20262025
Foreign Exchange ContractsOther (Expense) Income:
Miscellaneous, net		$(131)$25 
$(131)$25 
Gross Amounts Offset in the Statement of Financial PositionNet Amounts Presented in the Statement of Financial PositionGross Amounts not Offset in the Statement of Financial Position
Gross AmountFinancial InstrumentsCash Collateral ReceivedNet Amount
June 30, 2026
Derivative Assets$625 — $625 — — $625 
Total Assets$625 — $625 — — $625 
Derivative Liabilities$25,699 — $25,699 — — $25,699 
Total Liabilities$25,699 — $25,699 — — $25,699 
December 31, 2025
Derivative Assets$298 — $298 — — $298 
Total Assets$298 — $298 — — $298 
Derivative Liabilities$33,174 — $33,174 — — $33,174 
Total Liabilities$33,174 — $33,174 — — $33,174