AptarGroup(ATR) - 2025 Q4 - Annual Report

Financial Risks - As of December 31, 2025, the company has approximately $1.08 billion in recorded goodwill, which may be subject to impairment based on future business conditions [131]. - The company faces risks from lawsuits and claims, including patent infringement and product liability, which could lead to substantial costs and operational disruptions [134]. - Interest rate volatility may increase borrowing costs, impacting results of operations and cash flows [144]. - The company could face changes in tax rates and additional tax liabilities, which may adversely affect financial condition and operating results [145]. - Loss of royalty revenues from expiring agreements could negatively impact sales and margins [148]. - Foreign exchange rate movements may significantly impact the financial condition and results of operations due to the company's global operations [307]. Regulatory and Compliance Issues - The company is subject to various laws and regulations, including data privacy laws like GDPR and CPRA, which could incur significant compliance costs [132]. - Regulatory approvals from agencies like the FDA may delay product revenue realization and increase costs, adversely affecting financial results [133]. - Future government regulations on environmental matters may impact suppliers and manufacturing processes, potentially increasing costs [142]. - Changes in healthcare cost containment policies could adversely affect pharmaceutical sales and pricing [143]. Foreign Currency and Hedging - As of December 31, 2025, the total fair value of foreign currency forward exchange contracts recorded is $0.3 million in prepaid and other assets and $0.6 million in accounts payable, accrued and other liabilities [309]. - The company entered into a seven-year USD/EUR fixed-to-fixed cross currency interest rate swap to hedge interest rate exposure related to $203.0 million of the $400.0 million 3.60% Senior Notes due March 2032 [309]. - The USD/EUR swap agreement converted $203.0 million of fixed-rate 3.60% USD debt to €200.0 million of fixed-rate 2.5224% EUR debt [309]. - The fair value of the net investment hedge from the swap agreement is $32.5 million, reported in accounts payable, accrued and other liabilities [309]. - The average contract amount for foreign currency transactions is $91.81 million, with a minimum of $16.20 million and a maximum of $22.05 million for CZK/EUR [309]. - The average exchange rate for USD/MXN is 18.8004, with a contract amount of $21.5 million [309]. - The average exchange rate for EUR/USD is 1.1661, with a contract amount of $17.546 million [309]. - The average exchange rate for EUR/BRL is 6.4140, with a contract amount of $9.111 million [309]. - The average exchange rate for EUR/MXN is 22.0089, with a contract amount of $6.814 million [309]. - The average exchange rate for GBP/EUR is 1.1391, with a contract amount of $1.432 million [309].