APTARGROUP, INC.ATR
APTARGROUP, INC. Fair Value Disclosure
FAIR VALUE
Authoritative guidelines require the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows:
•Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.
•Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
•Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.
As of December 31, 2025, the fair values of our financial assets and liabilities were categorized as follows:
| Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
Investment in equity securities (1) | $ | 2,503 | $ | 2,503 | $ | — | $ | — | |||||||||||||||
Foreign exchange contracts (2) | 298 | — | 298 | — | |||||||||||||||||||
Convertible notes (3) | 5,650 | — | — | 5,650 | |||||||||||||||||||
| Total assets at fair value | $ | 8,451 | $ | 2,503 | $ | 298 | $ | 5,650 | |||||||||||||||
| Liabilities | |||||||||||||||||||||||
Foreign exchange contracts (2) | $ | 632 | $ | — | $ | 632 | $ | — | |||||||||||||||
Cross currency swap contract (2) | 32,542 | — | 32,542 | — | |||||||||||||||||||
| Contingent consideration obligation | 3,983 | — | — | 3,983 | |||||||||||||||||||
| Total liabilities at fair value | $ | 37,157 | $ | — | $ | 33,174 | $ | 3,983 | |||||||||||||||
As of December 31, 2024, the fair values of our financial assets and liabilities were categorized as follows:
| Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
Investment in equity securities (1) | $ | 2,986 | $ | 2,986 | $ | — | $ | — | |||||||||||||||
Foreign exchange contracts (2) | 572 | — | 572 | — | |||||||||||||||||||
Convertible notes (3) | 5,650 | — | — | 5,650 | |||||||||||||||||||
| Total assets at fair value | $ | 9,208 | $ | 2,986 | $ | 572 | $ | 5,650 | |||||||||||||||
| Liabilities | |||||||||||||||||||||||
Foreign exchange contracts (2) | $ | 622 | $ | — | $ | 622 | $ | — | |||||||||||||||
Cross currency swap contract (2) | 11,851 | — | 11,851 | — | |||||||||||||||||||
| Total liabilities at fair value | $ | 12,473 | $ | — | $ | 12,473 | $ | — | |||||||||||||||
(1)Investment in PureCycle Technologies ("PCT" or "PureCycle"). See Note 20 - Investment in Equity Securities for discussion of this investment.
(2)Market approach valuation technique based on observable market transactions of spot and forward rates.
(3)Investment in convertible notes in Enable Injections, Inc. and Siklus Refill Pte, Ltd. The investments are included within Miscellaneous assets in our Consolidated Balance Sheets.
The carrying amounts of our other current financial instruments such as cash and equivalents, accounts and notes receivable, notes payable and current maturities of long-term obligations approximate fair value due to the short-term maturity of the instrument. We consider our long-term debt obligations a Level 2 liability and utilize the market approach valuation technique based on interest rates that are currently available to us for issuance of debt with similar terms and maturities. The estimated fair value of our long-term obligations was $1.09 billion and $624.7 million as of December 31, 2025 and December 31, 2024, respectively.
As discussed in Note 19 - Acquisitions, as part of the Sommaplast acquisition, we are also obligated to pay to the shareholders of Sommaplast certain contingent consideration based on 2025 and 2026 cumulative financial performance metrics as defined in the purchase agreement. We consider these obligations a Level 3 liability. Based on a projection as of the acquisition date, we estimated the aggregate fair value for this contingent consideration arrangement to be $4.0 million utilizing a Monte Carlo valuation model.
Changes in the fair value of these obligations are recorded within selling, research & development and administrative expenses in our Consolidated Statements of Income. Significant changes to the inputs, as noted above, can result in a significantly higher or lower fair value measurement. The following table provides a summary of changes in our Level 3 fair value measurements:
| Balance, December 31, 2024 | $ | — | |||
| Acquisition | 3,983 | ||||
| Balance, December 31, 2025 | $ | 3,983 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 6, 2026 | Showing above |
| 2024 | Feb 7, 2025 | |
| 2023 | Feb 9, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 24, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 25, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.