APTARGROUP, INC.ATR

APTARGROUP, INC. Goodwill & Intangibles Disclosure

10-KFiled Feb 6, 20263 min read
GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill for the year ended December 31, 2025 by reporting segment are as follows:
PharmaBeautyClosuresTotal
Balance as of December 31, 2023$508,447 $287,097 $167,874 $963,418 
Foreign currency exchange effects(20,213)(5,811)(1,138)(27,162)
Balance as of December 31, 2024$488,234 $281,286 $166,736 $936,256 
Acquisitions9,397 76,183 — 85,580 
Foreign currency exchange effects41,072 13,379 1,611 56,062 
Balance as of December 31, 2025$538,703 $370,848 $168,347 $1,077,898 
We have completed the annual impairment analysis of our reporting units as of October 1, 2025. As we performed our annual goodwill impairment assessment, due to events or circumstances that were unfavorable for the Beauty segment, management determined it appropriate to calculate the fair value of the Beauty reporting unit and compare with its associated carrying amount as of October 1, 2025.
We estimated the fair value of the reporting unit based upon the present value of their estimated future cash flows. Our determination of fair value involved judgment and the use of estimates and significant assumptions related to projected revenue growth rates, projected EBITDA margins, as well as the discount rate to calculate estimated future cash flows. We believe that our assumptions used in discounting future cash flows are appropriate.
Based on our review of macroeconomic, industry, and market events and circumstances of the reporting units, as well as the overall financial performance including the discounted cash flow analysis for the Beauty reporting unit, we determined that it was more likely than not that the fair values of the reporting units were greater than their carrying amounts. No impairment was recognized during the years ended December 31, 2025, 2024 or 2023.
The table below shows a summary of intangible assets for the years ended December 31, 2025 and 2024.
20252024
Weighted Average
Amortization Period
(Years)		Gross
Carrying
Amount		Accumulated
Amortization		Net
Value		Gross
Carrying
Amount		Accumulated
Amortization		Net
Value
Amortized intangible assets:
Patents13.0$19,032 $(4,016)$15,016 $18,333 $(2,343)$15,990 
Acquired technology10.7157,350 (99,551)57,799 137,444 (80,171)57,273 
Customer relationships13.9332,088 (177,686)154,402 303,502 (145,772)157,730 
Trademarks and trade names7.146,885 (41,726)5,159 42,882 (36,450)6,432 
License agreements and other25.232,927 (9,964)22,963 26,318 (8,974)17,344 
Total intangible assets14.0$588,282 $(332,943)$255,339 $528,479 $(273,710)$254,769 
During the year ended December 31, 2025, related to acquisitions made during the year, we purchased $31.2 million of intangibles primarily associated with the purchase of customer relationships of $17.4 million, acquired technology of $7.2 million, and other intangible assets of $6.6 million. Aggregate amortization expense for the intangible assets above for the years ended December 31, 2025, 2024 and 2023 was $45,051, $44,117 and $44,720, respectively.
Future estimated amortization expense for the years ending December 31 is as follows:
2026$45,384 
202738,615 
202833,964 
202933,018 
203029,568 
2031 and thereafter74,790 
Future amortization expense may fluctuate depending on changes in foreign currency rates. The estimates for amortization expense noted above are based upon foreign exchange rates as of December 31, 2025.

Historical Timeline

Fiscal YearFiled
2025Feb 6, 2026Showing above
2024Feb 7, 2025
2023Feb 9, 2024
2022Feb 17, 2023
2021Feb 18, 2022
2020Feb 19, 2021
2019Feb 24, 2020
2018Feb 21, 2019
2017Feb 26, 2018
2016Feb 27, 2017
2015Feb 25, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValueLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance