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COMMITMENTS AND CONTINGENCIES
9 Months Ended
Sep. 30, 2026
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
We are subject to a number of lawsuits and claims both actual and potential in nature including those involving intellectual property and commercial disputes. For example, we are involved in legal proceedings in certain jurisdictions related to alleged infringement of intellectual property rights, alleged customer breach of confidentiality obligations, alleged customer misuse of proprietary information and alleged violations of competition and antitrust laws. We are actively litigating our interests in these matters and management believes the resolution of these claims and lawsuits will not have a material adverse effect on our financial position, 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.
Legal Proceedings
On March 25, 2025, AptarGroup, Inc. and its subsidiary, Aptar France SAS, filed a lawsuit in the United States District Court for the Southern District of New York against ARS Pharmaceuticals, Inc. and ARS Pharmaceuticals Operations, Inc. (together, “ARS”), alleging that ARS misappropriated Aptar’s trade secrets and breached multiple contractual confidentiality obligations and seeking injunctive relief and damages. Relatedly, on September 29, 2025, ARS filed a lawsuit in the United States District Court for the Southern District of California against Aptar, alleging that Aptar violated Sections 1 and 2 of the Sherman Act and Section 3 of the Clayton Act by refusing to sell certain components and seeking injunctive relief and damages. These two matters have now been consolidated in the Southern District of New York, are pending and no final determination has been made by the court. On October 14, 2026, Aptar filed a motion to amend the complaint, to add Silgan Dispensing Systems Corp. as a party to the case. The motion is pending.
In May 2025, Nemera La Verpillière SAS ("Nemera") filed parallel patent infringement actions in Mannheim Regional Court, Germany (the "Mannheim Court") and Paris Judicial Court, France against Aptar and certain subsidiaries alleging that Aptar's ophthalmic product infringes a Nemera patent, seeking an injunction and damages. Aptar is contesting the claims and the proceedings are continuing. Aptar filed oppositions before the European Patent Office ("EPO") challenging the validity of the European Patent (EP) asserted by Nemera which are still pending with a further hearing scheduled for May 2027. In addition, on August 7, 2026, Aptar Radolfzell GmbH has brought a patent infringement action against Nemera La Verpillière SAS before the Unified Patent Court, Paris Local Division of the Court of First Instance, relating to Nemera's ophthalmic dispensers.
At this stage, each of the above matters is too preliminary to form a judgment as to whether an adverse outcome is probable, and we are unable to estimate the possible loss or range of loss, if any.
Tariff-related Matters
On February 20, 2026, the United States Supreme Court ruled that the International Emergency Economic Powers Act (“IEEPA”) does not authorize the imposition of tariffs. thereby invalidating tariffs previously imposed by the US administration under that statute. Effective July 24, 2026, the new Section 301 Forced Labor tariffs replaced the expired Section 122 tariff program. The new section 310 tariff framework applies country-specific tariff rates ranging from 10% to 12.5%, while preserving exemptions for USMCA-qualified goods and certain products already subject to Section 232 tariffs. Through our preliminary analysis, we do not expect that the new Section 301 tariff will have significant incremental impact to Aptar.
During Q3 2026, Aptar continues to submit IEEPA tariff refund claims through CBP's CAPE platform using a phased approach based on entry expiration dates and data readiness. In accordance with ASC 450‑30, Contingencies—Gain Contingencies, Aptar will account for any potential recovery of previously paid IEEPA tariffs as a gain contingency. As of September 30, 2026, Aptar has received certain tariff refunds and continues to evaluate additional potential recoveries; no amounts have been recognized for such additional potential recoveries.
Other Contingencies
Under our Certificate of Incorporation, we have agreed to indemnify our officers and directors for certain events or occurrences while the officer or director is, or was, serving at our request in such capacity. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have a directors and officers liability insurance policy that covers a portion of our exposure. As a result of our insurance policy coverage, we believe the estimated fair value of these indemnification agreements is minimal. We have no liabilities recorded for these agreements as of September 30, 2026 and December 31, 2025.
We are periodically subject to loss contingencies resulting from customs duties assessments. We accrue for anticipated costs when an assessment has indicated that a loss is probable and can be reasonably estimated. We have received claims worth approximately $11.0 million to $12.0 million in principal, and $22.0 million to $23.0 million for interest and penalties. We are currently defending our position with respect to these claims in the respective administrative procedures. Due to uncertainty in the probability of settlement and the timing of our appeal, no liability is recorded as of September 30, 2026.
We will continue to evaluate these liabilities periodically based on available information, including the status of discussions with regulatory authorities regarding the methods and extent of remediation and the apportionment of costs and penalties among potentially responsible parties.