8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

April 13, 2023

Date of Report (Date of earliest event reported)

AptarGroup, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-11846	36-3853103
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

265 Exchange Drive, Suite 301, Crystal Lake, Illinois 60014

(Address of principal executive offices)

Registrant’s telephone number, including area code: 815-477-0424.

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	ATR	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company    ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Item 7.01      Regulation FD Disclosure.

AptarGroup, Inc. (“we,” “our,” “us,” “Aptar,” or the “Company,”) previously announced that, effective January 1, 2023, there was a realignment of two of our segments, allowing us to better serve our customers and positioning us for long-term profitable growth. During the years ended December 31, 2022 and 2021, our organizational structure consisted of three market-focused business segments: Pharma, Beauty + Home and Food + Beverage. Effective with this change, we continue to have three reporting segments and they are called Aptar Pharma, Aptar Beauty and Aptar Closures.

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 are simplifying and focusing 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.

These changes are intended to help us increase our rate of innovation, broaden our market reach, streamline operations, increase effectiveness and raise capital efficiencies. Additionally, we intend to continue to focus on sustainability because leadership in sustainability remains a key differentiator across all of our segments. The Company's revised reporting segments are consistent with how the Company's chief operating decision maker is assessing operating performance and allocating capital resources following the realignment of its segment structure.

The Company is furnishing this Form 8-K to provide investors with unaudited historical segment operating and adjusted financial results consistent with its new reporting structure. The schedules in Exhibit 99.1 to this Current Report of Form 8-K provide unaudited operating and financial information on the basis of the Company’s new reporting segments for the previously-reported quarters in fiscal 2022 and the years ended December 31, 2022 and 2021.

The segment realignment discussed above and presented in Exhibit 99.1 hereto does not represent a restatement of previously issued financial statements, and does not change the Company’s previously reported consolidated financial results for any period, nor does it reflect any subsequent information or events, other than as required to reflect the change in reporting segments as described above. This information should be read in conjunction with our previously filed Form 10-K and Form 10-Qs. The information in Item 7.01 of this Form 8-K and the Exhibit 99.1 attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), except as shall be expressly set forth by specific reference in such filing.

Presentation of Non-GAAP Information

Exhibit 99.1 attached hereto refers to certain non-GAAP financial measures, including adjusted EBITDA, which exclude the impact of business transformation charges (restructuring initiatives), acquisition-related costs, certain purchase accounting adjustments related to acquisitions and investments and net unrealized investment gains and losses related to observable market price changes on equity securities. Non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures provided by other companies. Aptar’s management believes these non-GAAP financial measures provide useful information to our investors because they allow for a better period over period comparison of operating results by removing the impact of items that, in management’s view, do not reflect Aptar’s core operating performance. These non-GAAP financial measures also provide investors with certain information used by Aptar’s management when making financial and operational decisions. These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial results but should be read in conjunction with the unaudited condensed consolidated statements of income and other information included in Aptar’s previously filed Form 10-K and Form 10-Qs. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is included in the exhibit.

This Form 8-K contains forward-looking statements, including statements regarding our growth opportunities, strategic plans, market penetration, operational and capital efficiencies and sustainability goals. Words such as “expects,” “anticipates,” “believes,” “estimates,” “future,” “potential,” “continues” and other similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could” are intended to identify such forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act and Section 21E of the Exchange Act and are based on our beliefs as well as assumptions made by and information currently available to us. Accordingly, our actual results or other events may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist in our operations and business environment including, but not limited to: geopolitical conflicts worldwide including the invasion of Ukraine by the Russian military and the resulting indirect impact on demand from our customers selling their products into these countries, as well as rising input costs and certain supply chain disruptions; lower demand and asset utilization due to an economic recession either globally or in key markets we operate within; the impact of COVID-19 and its variants on our global supply chain and our global customers, employees and operations, which has elevated and will continue to elevate many of the risks and uncertainties discussed below; economic conditions worldwide, including inflationary conditions and potential deflationary conditions in other regions we rely on for growth; the execution of our restructuring initiatives; the availability of direct labor workers and the increase in direct labor costs, especially in North America; our ability to preserve organizational culture and maintain employee productivity in the work-from-home environment caused by the current pandemic; the availability of raw materials and components (particularly from sole sourced suppliers) as well as the financial viability of these suppliers; fluctuations in the cost of materials, components, transportation cost as a result of supply chain disruptions and labor shortages, and other input costs (particularly resin, metal, anodization costs and energy costs); significant fluctuations in foreign currency exchange rates or our effective tax rate; the impact of tax reform legislation, changes in tax rates and other tax-related events or transactions that could impact our effective tax rate; financial conditions of customers and suppliers; consolidations within our customer or supplier bases; changes in customer and/or consumer spending levels; loss of one or more key accounts; our ability to successfully implement facility expansions and new facility projects; our ability to offset inflationary impacts with cost containment, productivity initiatives and price increases; changes in capital availability or cost, including rising interest rates; volatility of global credit markets; our ability to identify potential new acquisitions and to successfully acquire and integrate such operations, including the successful integration of the businesses we have acquired, including contingent consideration valuation; our ability to build out acquired businesses and integrate the product/service offerings of the acquired entities into our existing product/service portfolio; direct or indirect consequences of acts of war, terrorism or social unrest; cybersecurity threats that could impact our networks and reporting systems; the impact of natural disasters and other weather-related occurrences; fiscal and monetary policies and other regulations; changes or difficulties in complying with government regulation; changing regulations or market conditions regarding environmental sustainability; work stoppages due to labor disputes; competition, including technological advances; our ability to protect and defend our intellectual property rights, as well as litigation involving intellectual property rights; the outcome of any legal proceeding that has been or may be instituted against us and others; our ability to meet future cash flow estimates to support our goodwill impairment testing; the demand for existing and new products; the success of our customers’ products, particularly in the pharmaceutical industry; our ability to manage worldwide customer launches of complex technical products, particularly in developing markets; difficulties in product development and uncertainties related to the timing or outcome of product development; significant product liability claims; and other risks associated with our operations. For additional information on these and other risks and uncertainties, please see our filings with the Securities and Exchange Commission, including the discussion under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Form 10-K and Form 10-Qs. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits
99.1	Recast unaudited financial information - for the quarter ended March31, 2022; the quarter ended June 30, 2022; the quarter ended September 30, 2022; the quarter and fiscal year endedDecember31, 2022andthe fiscal year endedDecember 31, 2021.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		AptarGroup, Inc.
Date:  April 13, 2023	By:	/s/ Robert W. Kuhn
		Robert W. Kuhn
		Executive Vice President and
		Chief Financial Officer

Document

Exhibit 99.1

AptarGroup, Inc.

Revenue by Segment & Geography (Unaudited)

($ In Thousands)

Revenue by segment and geography based on shipped from locations for each of the quarterly periods of 2022 is as follows:

	For the Three Months Ended March 31, 2022
Segment	Europe		Domestic		Latin<br>America		Asia		Total
Aptar Pharma	$	211,007	$	106,341	$	7,855	$	17,259	$	342,462
Aptar Beauty	187,759		69,380		29,690		22,251		309,080
Aptar Closures	56,365		104,284		20,199		12,542		193,390
Total	$	455,131	$	280,005	$	57,744	$	52,052	$	844,932			For the Three Months Ended June 30, 2022
---	---	---	---	---	---	---	---	---	---	---
Segment	Europe		Domestic		Latin<br>America		Asia		Total
Aptar Pharma	$	209,118	$	108,414	$	6,339	$	16,360	$	340,231
Aptar Beauty	182,934		79,819		32,452		22,462		317,667
Aptar Closures	52,913		100,569		20,351		12,812		186,645
Total	$	444,965	$	288,802	$	59,142	$	51,634	$	844,543			For the Three Months Ended September 30, 2022
---	---	---	---	---	---	---	---	---	---	---
Segment	Europe		Domestic		Latin<br>America		Asia		Total
Aptar Pharma	$	212,751	$	105,542	$	6,309	$	18,795	$	343,397
Aptar Beauty	169,936		75,070		35,195		22,845		303,046
Aptar Closures	54,146		99,198		21,777		15,296		190,417
Total	$	436,833	$	279,810	$	63,281	$	56,936	$	836,860			For the Three Months Ended December 31, 2022
---	---	---	---	---	---	---	---	---	---	---
Segment	Europe		Domestic		Latin<br>America		Asia		Total
Aptar Pharma	$	203,571	$	106,104	$	6,572	$	18,919	$	335,166
Aptar Beauty	182,911		59,783		31,005		19,043		292,742
Aptar Closures	49,984		85,655		17,719		14,648		168,006
Total	$	436,466	$	251,542	$	55,296	$	52,610	$	795,914

Revenue by segment and geography based on shipped from locations for the years ended December 31, 2022 and 2021 is as follows:

	For the Year Ended December 31, 2022
Segment	Europe		Domestic		Latin<br>America		Asia		Total
Aptar Pharma	$	836,447	$	426,401	$	27,075	$	71,333	$	1,361,256
Aptar Beauty	723,540		284,052		128,342		86,601		1,222,535
Aptar Closures	213,408		389,706		80,046		55,298		738,458
Total	$	1,773,395	$	1,100,159	$	235,463	$	213,232	$	3,322,249
	For the Year Ended December 31, 2021
---	---	---	---	---	---	---	---	---	---	---
Segment	Europe		Domestic		Latin<br>America		Asia		Total
Aptar Pharma	$	830,552	$	374,063	$	21,482	$	58,527	$	1,284,624
Aptar Beauty	675,079		300,658		117,920		88,189		1,181,846
Aptar Closures	219,551		407,102		76,641		57,457		760,751
Total	$	1,725,182	$	1,081,823	$	216,043	$	204,173	$	3,227,221

AptarGroup, Inc.

Segment Information (Unaudited)

($ In Thousands)

Financial information regarding our reporting segments for each of the quarterly periods of 2022 is as follows:

Three Months Ended	March 31		June 30		September 30		December 31
Total Sales:
Aptar Pharma	$	346,672	$	345,369	$	345,079	$	335,329
Aptar Beauty	315,368		323,794		308,353		298,503
Aptar Closures	196,068		189,166		192,706		170,115
Total Sales	$	858,108	$	858,329	$	846,138	$	803,947
Less: Intersegment Sales:
Aptar Pharma	$	4,210	$	5,138	$	1,682	$	163
Aptar Beauty	6,288		6,127		5,307		5,761
Aptar Closures	2,678		2,521		2,289		2,109
Total Intersegment Sales	$	13,176	$	13,786	$	9,278	$	8,033
Net Sales:
Aptar Pharma	$	342,462	$	340,231	$	343,397	$	335,166
Aptar Beauty	309,080		317,667		303,046		292,742
Aptar Closures	193,390		186,645		190,417		168,006
Net Sales	$	844,932	$	844,543	$	836,860	$	795,914
Adjusted EBITDA (1):
Aptar Pharma	$	115,552	$	111,006	$	107,235	$	107,829
Aptar Beauty	34,550		41,230		36,563		39,544
Aptar Closures	24,183		21,354		23,483		17,089
Corporate & Other, unallocated	(17,970)		(13,663)		(13,537)		(17,760)
Acquisition-related costs (2)	—		—		(231)		—
Restructuring Initiatives	(291)		(428)		(2,270)		(3,608)
Net unrealized investment (loss) gain (3)	(2,091)		(483)		277		(1,026)
Depreciation and amortization	(58,665)		(58,552)		(57,601)		(58,888)
Interest Expense	(8,930)		(11,982)		(9,756)		(10,159)
Interest Income	288		989		752		671
Income before Income Taxes	$	86,626	$	89,471	$	84,915	$	73,692

(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.

(3)Net unrealized investment (loss) gain represents the change in fair value of our investment in PureCycle Technologies (“PCT”).

Financial information regarding our reporting segments for the years ended December 31, 2022 and 2021 is as follows:

Years Ended December 31,	2022		2021
Total Sales:
Aptar Pharma	$	1,372,449	$	1,297,996
Aptar Beauty	1,246,018		1,204,312
Aptar Closures	748,055		768,497
Total Sales	$	3,366,522	$	3,270,805
Less: Intersegment Sales:
Aptar Pharma	$	11,193	$	13,372
Aptar Beauty	23,483		22,466
Aptar Closures	9,597		7,746
Total Intersegment Sales	$	44,273	$	43,584
Net Sales:
Aptar Pharma	$	1,361,256	$	1,284,624
Aptar Beauty	1,222,535		1,181,846
Aptar Closures	738,458		760,751
Net Sales	$	3,322,249	$	3,227,221
Adjusted EBITDA (1):
Aptar Pharma	$	441,622	$	425,714
Aptar Beauty	151,887		125,451
Aptar Closures	86,109		108,615
Corporate & Other, unallocated	(62,930)		(52,314)
Acquisition-related costs (2)	(231)		(3,811)
Restructuring Initiatives	(6,597)		(23,240)
Net unrealized investment (loss) gain (3)	(3,323)		2,709
Depreciation and amortization	(233,706)		(234,853)
Interest Expense	(40,827)		(30,284)
Interest Income	2,700		3,668
Income before Income Taxes	$	334,704	$	321,655
Capital Expenditures:
Aptar Pharma	$	164,396	$	154,077
Aptar Beauty	74,203		87,442
Aptar Closures	44,223		47,225
Corporate & Other	29,491		29,686
Transfer of Corporate Technology Expenditures (4)	(1,886)		(10,495)
Capital Expenditures	$	310,427	$	307,935
Total Assets:
Aptar Pharma	$	1,872,843	$	1,833,512
Aptar Beauty	1,398,813		1,370,854
Aptar Closures	779,654		819,332
Corporate & Other	152,148		117,666
Total Assets	$	4,203,458	$	4,141,364

(4)The transfer of corporate technology expenditures represents amounts of projects managed by corporate for the benefit of specific entities within each segment. Once the projects are complete, all related costs are allocated from corporate to and paid by the appropriate entity and the associated assets are then depreciated at the entity level.

AptarGroup, Inc.

Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited)

($ In Thousands)

The reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income for each of the quarterly periods of 2022 is as follows:

	Three Months Ended March 31, 2022
	Consolidated			Aptar Pharma			Aptar Beauty			Aptar Closures			Corporate & Other		Net Interest
Net Sales	$	844,932		$	342,462		$	309,080		$	193,390		$	—	$	—
Reported net income	$	62,371
Reported income taxes	24,255
Reported income before income taxes	86,626			92,206			14,008			10,646			(21,592)		(8,642)
Adjustments:
Restructuring initiatives	291			—			111			180			—
Net unrealized investment loss (1)	2,091			—			—			—			2,091
Transaction costs related to acquisitions	—			—			—			—			—
Adjusted earnings before income taxes	89,008			92,206			14,119			10,826			(19,501)		(8,642)
Interest expense	8,930														8,930
Interest income	(288)														(288)
Adjusted earnings before net interest and taxes (Adjusted EBIT)	97,650			92,206			14,119			10,826			(19,501)		—
Depreciation and amortization	58,665			23,346			20,431			13,357			1,531
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)	$	156,315		$	115,552		$	34,550		$	24,183		$	(17,970)	$	—
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)	18.5		%	33.7		%	11.2		%	12.5		%
	Three Months Ended June 30, 2022
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Consolidated			Aptar Pharma			Aptar Beauty			Aptar Closures			Corporate & Other		Net Interest
Net Sales	$	844,543		$	340,231		$	317,667		$	186,645		$	—	$	—
Reported net income	$	63,613
Reported income taxes	25,858
Reported income before income taxes	89,471			87,445			20,459			8,188			(15,628)		(10,993)
Adjustments:
Restructuring initiatives	428			—			423			5			—
Net unrealized investment loss (1)	483			—			—			—			483
Transaction costs related to acquisitions	—			—			—			—			—
Adjusted earnings before income taxes	90,382			87,445			20,882			8,193			(15,145)		(10,993)
Interest expense	11,982														11,982
Interest income	(989)														(989)
Adjusted earnings before net interest and taxes (Adjusted EBIT)	101,375			87,445			20,882			8,193			(15,145)		—
Depreciation and amortization	58,552			23,561			20,348			13,161			1,482
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)	$	159,927		$	111,006		$	41,230		$	21,354		$	(13,663)	$	—
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)	18.9		%	32.6		%	13.0		%	11.4		%
	Three Months Ended September 30, 2022
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Consolidated			Aptar Pharma			Aptar Beauty			Aptar Closures			Corporate & Other		Net Interest
Net Sales	$	836,860		$	343,397		$	303,046		$	190,417		$	—	$	—
Reported net income	$	54,177
Reported income taxes	30,738
Reported income before income taxes	84,915			83,571			14,729			10,460			(14,841)		(9,004)
Adjustments:
Restructuring initiatives	2,270			—			2,240			30			—
Net unrealized investment gain (1)	(277)			—			—			—			(277)
Transaction costs related to acquisitions	231			231			—			—			—
Adjusted earnings before income taxes	87,139			83,802			16,969			10,490			(15,118)		(9,004)
Interest expense	9,756														9,756
Interest income	(752)														(752)
Adjusted earnings before net interest and taxes (Adjusted EBIT)	96,143			83,802			16,969			10,490			(15,118)		—
Depreciation and amortization	57,601			23,433			19,594			12,993			1,581
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)	$	153,744		$	107,235		$	36,563		$	23,483		$	(13,537)	$	—
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)	18.4		%	31.2		%	12.1		%	12.3		%
	Three Months Ended December 31, 2022
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Consolidated			Aptar Pharma			Aptar Beauty			Aptar Closures			Corporate & Other		Net Interest
Net Sales	$	795,914		$	335,166		$	292,742		$	168,006		$	—	$	—
Reported net income	$	59,394
Reported income taxes	14,298
Reported income before income taxes	73,692			83,773			16,654			2,891			(20,138)		(9,488)
Adjustments:
Restructuring initiatives	3,608			—			2,765			843			—
Net unrealized investment loss (1)	1,026			—			—			—			1,026
Transaction costs related to acquisitions	—			—			—			—			—
Adjusted earnings before income taxes	78,326			83,773			19,419			3,734			(19,112)		(9,488)
Interest expense	10,159														10,159
Interest income	(671)														(671)
Adjusted earnings before net interest and taxes (Adjusted EBIT)	87,814			83,773			19,419			3,734			(19,112)		—
Depreciation and amortization	58,888			24,056			20,125			13,355			1,352
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)	$	146,702		$	107,829		$	39,544		$	17,089		$	(17,760)	$	—
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)	18.4		%	32.2		%	13.5		%	10.2		%

The reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income for the years ended December 31, 2022 and 2021 is as follows:

	Year Ended December 31, 2022
	Consolidated			Aptar Pharma			Aptar Beauty			Aptar Closures			Corporate & Other		Net Interest
Net Sales	$	3,322,249		$	1,361,256		$	1,222,535		$	738,458		$	—	$	—
Reported net income	$	239,555
Reported income taxes	95,149
Reported income before income taxes	334,704			346,995			65,850			32,185			(72,199)		(38,127)
Adjustments:
Restructuring initiatives	6,597			—			5,539			1,058			—
Net unrealized investment loss (1)	3,323			—			—			—			3,323
Transaction costs related to acquisitions	231			231			—			—			—
Adjusted earnings before income taxes	344,855			347,226			71,389			33,243			(68,876)		(38,127)
Interest expense	40,827														40,827
Interest income	(2,700)														(2,700)
Adjusted earnings before net interest and taxes (Adjusted EBIT)	382,982			347,226			71,389			33,243			(68,876)		—
Depreciation and amortization	233,706			94,396			80,498			52,866			5,946
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)	$	616,688		$	441,622		$	151,887		$	86,109		$	(62,930)	$	—
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)	18.6		%	32.4		%	12.4		%	11.7		%
	Year Ended December 31, 2021
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	Consolidated			Aptar Pharma			Aptar Beauty			Aptar Closures			Corporate & Other		Net Interest
Net Sales	$	3,227,221		$	1,284,624		$	1,181,846		$	760,751		$	—	$	—
Reported net income	$	243,638
Reported income taxes	78,017
Reported income before income taxes	321,655			331,317			33,923			52,358			(69,327)		(26,616)
Adjustments:
Restructuring initiatives	23,240			76			8,149			2,702			12,313
Net unrealized investment gain (1)	(2,709)			—			—			—			(2,709)
Transaction costs related to acquisitions	3,811			3,811			—			—			—
Adjusted earnings before income taxes	345,997			335,204			42,072			55,060			(59,723)		(26,616)
Interest expense	30,284														30,284
Interest income	(3,668)														(3,668)
Adjusted earnings before net interest and taxes (Adjusted EBIT)	372,613			335,204			42,072			55,060			(59,723)		—
Depreciation and amortization	234,853			90,510			83,379			53,555			7,409		—
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)	$	607,466		$	425,714		$	125,451		$	108,615		$	(52,314)	$	—
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)	18.8		%	33.1		%	10.6		%	14.3		%

(1)Net unrealized investment gain (loss) represents the change in fair value of our investment in PCT.

10