aptargroup, inc. (atr)

by:Keyuan     2020-06-17
Securities and Exchange Commission of the United States (Washington, DC)C. 20549FORM 10‑K[X]
Annual reports submitted under sections 13 or 15 (d)
Securities Trading Act for the fiscal year ended December 31, 2016 or []
Transition reports submitted under sections 13 or 15 (d)
Transitional securities trading laws from Document 1-11846 to enlargeAptarGroup, Inc.
Delaware36-3853 103475 West Terracotta Warriors Avenue, Kit E, 60014815-477-0424 Securities, Crystal Lake, Illinois, registered under section 12th (b)
Title of the act: name of each class of each exchange registered with common stock $.
01 face value stock exchange registered under section 12thg)
Part of the act: if the registrant is a well-known and experienced issuer, it is not indicated by a check mark, as defined in Rule 405 of the Securities Act.
Yes. ☒No. ☐Indicate by check mark whether the registrant does not need to submit a report under Section 13 or section 15 (d)of the Act.
Yes. ☐No. ☒Indicate by check mark whether the registrant (1)
All reports requested in Section 13 or 15 have been submitted (d)
Securities Trading Act of 1934 within the first 12 months (
Or a short period of time required for the registrant to submit such reports), and (2)
This filing requirement has been bound for the last 90 days.
Yes. ☒No. ☐Indicate by check mark whether the registrant is electronically submitted and posted on his company\'s website, if any, for the last 12 months, each interactive data file needs to be submitted and published according to Rule 405 (
Or in such a short time that the registrant is required to submit and publish these documents).
Yes. ☒No. ☐By checking marks, it is indicated that, to the best of the registrant\'s knowledge, the disclosure of the default declarant\'s circumstances under article 405th is not in this agreement and will not be included, in the final agency or information statement referenced in Part ii of this Form 10-K or incorporated in any amendment to this form 10-K.
☒Indicate whether the registrant is a large accelerated applicant, a non-accelerated applicant, or a smaller reporting company through a check mark.
See the definition of \"large accelerated declarant\", \"accelerated declarant\" and \"small Reporting Company\" in Rule 12b-2 of the Transaction Act.
Big speed filer☒Speed up filer☐Non-accelerated files☐Small Reporting Company☐(
Do not check if there are smaller reporting companies)
Indicate whether the registrant is a shell company by check mark (
As defined in Rule 12b-2 of the Act).
Yes. ☐No. ☒As of June 30, 2016, the total market value of ordinary shares held by non-affiliated companies was $5,397,779,755.
As at February 20, 2017, the number of outstanding shares of common stock was 62,329,609 shares.
The reference part of the final proxy statement to be submitted to shareholders and the documents relating to the annual meeting of shareholders to be held on May 3, 2017 are cited for inclusion in Part II of this report.
Table ContentsAptarGroup, Inc.
The year ending December 31, 2016. BusinessItem1A.
Risk factor 1b.
Unresolved employee reviewsProperty item3.
Legal ProceedingsItem4.
Information disclosure of Mine Safety 5.
The market in which the registrant\'s common stock, related shareholder matters and the issuer purchase equity securities.
Selected Financial Data 7.
Management Discussion and Analysis of the financial status and results of the operating website 7a.
Quantitative and qualitative disclosure on the market riskitem8.
Financial statements and supplementary data 9.
Changes and disagreements with accountants on accounting and financial disclosure project 9a.
Control and procedures 9 trouble information section 10 safety ownership specific relationships and related transactions for directors, executives and corporate governance projects 11 executive compensation programs 12 certain beneficial owners and management and related shareholders, and director independence
K summary signaturesi/ATR2016 formation month-
Report of final accounts of KTable ContentsPARTIITEM.
Aptargroup\'s business we are the world\'s leading provider of a range of innovative packaging, distribution and sealing solutions for beauty, personal care, home care, prescription drugs, consumer care, food and beverage markets.
Our creative packaging solutions enhance the convenience, safety and security of consumers around the world, enabling our customers to differentiate their products in the market.
Our business began in the 1940s s by manufacturing and selling aerosol valves in the United States, mainly through the acquisition of relatively small companies and internal expansion.
We were registered in Delaware in 1992.
In this report, we can refer to AptarGroup, Inc.
And subsidiaries such as \"AptarGroup\", \"Aptar\" or \"Company.
We have manufacturing facilities in North America, Europe, Asia and South America all over the world.
Of our 5,000 net sales, we have about 6% customers who do not have a single customer or a group of affiliated customers, accounting for more than 2016.
The consumer\'s preference for the convenience of packaging design and product difference is important to our customers, who have already changed many of their packaging from non-
The dispensing format is provided to the dispensing system, providing enhanced shelf appeal, convenience, cleanliness and dose accuracy.
While we offer a wide range of distribution and sealing solutions, our main products are distribution pumps, closures, aerosol valves, and elastic primary packaging components.
Distribution pump refers to the drive distribution system that distributes spray or emulsion from a non-pressurized container.
The style of the pump used depends to a large extent on the nature of the products assigned, from small fine mist pumps for perfumes and medicines to milk pumps for more viscous formulations.
Closing is primarily a distribution close, but can include a non-allocation close to a lesser extent.
The distribution cap is a plastic cap that allows the distribution of the product without removing the cap.
The air mist valve distributes the product from the pressurized container.
Most of the aerosol valves we sell are continuous spray valves, and the balance is a metering valve.
We also produce and sell flexible primary packaging components.
These components are used in the injection market.
Products include plugs for infusion, antibiotics, freeze-drying and diagnostic bottles.
Our elastic parts also include pre-filled syringe parts such as Pistons, needle covers, top caps and cartridges, as well as dropper bulbs and syringe Pistons.
On February 29, 2016, the company completed the acquisition of MegaPlast Co. , Ltd. and its subsidiaries, as well as Megaplast France S. a. r. l.
And large pumpsP. (“Mega Airless”).
Mega Airless is a leading provider of innovation
Plastic airless dispensing system for beauty, personal care and pharmaceutical market.
Available information our periodic and current reports, as well as any modifications to these reports, are available free of charge through the link on our website investor page (www. aptar. com)
After the materials are submitted or provided electronically to the Securities and Exchange Commission, as soon as reasonably practicable (“SEC”).
These documents can also be made available to the public via the Internet on the SEC\'s website (
You can also read and copy any documents we submit to the SEC in the public reference room at 100 F Street, NE 20549, DC.
Please in 1-800-SEC-
0330 further information on the expansion room.
We also publish articles of association, governance principles, business code of conduct and ethics of audit, compensation, governance and executive committee on our website, our directors independent standards and conflict minerals statement.
Within the time required by the SEC and the New York Stock Exchange (“NYSE”)
, We will post on our website any amendments or exemptions applicable to the business conduct and ethics of any executive officer or director.
The information provided on our website is not part of this report and is therefore not included in this report through reference.
Table 10-1/ATR2016
ContentsOUR strategy KTable we seek to enhance our position as a global leading supplier of innovative packaging distribution and sealing solutions through strategic focus and execution in the following areas and to provide our customers and shareholdersi)
Focus on the market: we are committed to developing the market.
Focus on the packaging solution, the conversion is not very convenient or not
Assign the application to a convenient distribution system or replace the current distribution application with more value
Some glue products were added.
We see more convenient and valuable opportunities.
Add solutions to all of our market segments and markets. (ii)
Diversity: Our goal is to continue to expand our geographic footprint and portfolio of solutions through internal growth and acquisitions in order to provide multiple end-use services to consumers and pharmaceutical companies around the world.
Our ability to diversify our business globally and across multiple end-uses is a key strategic priority, which enhances our competitive position and reduces our ability to reach any particular region or market(iii)
Niche providers: our customers want us to develop products that provide them with market differences related to ease of use, product security, and compliance.
We invest in consumer research, product design and manufacturing technology to be the leader in packaging delivery solutions. (iv)
Innovation: We use market research and insights into consumer behavior to develop and license new products for innovation.
In addition, we actively adjust and transfer innovative product technologies and concepts across business units and geographic regions. (v)
Operational efficiency: we compete with global and local companies.
We focus on executing initiatives to improve operational efficiency, including actions to redesign around local sourcing, production efficiency and processes.
We understand the importance of continuous improvement in protecting our ability to compete in the market. (vi)
Talented Workforce: executing our strategy requires a talented, aggressive team.
We have focused talent acquisition and development strategies to ensure that our team has the right skills to execute our strategy.
Promoting the execution of our strategy is our core values that determine how we interact internally and with customers, suppliers and all stakeholders.
Aptargroup reports the description of the segment information about the organizational structure of the segment saptargroup consists of three market-centric business segments of beauty home, pharmaceutical and food & beverage.
This is a strategic structure that enables us to be more closely integrated with our customers and the markets they operate in.
We sell our products mainly through our own sales team to the world\'s largest beauty, personal care, pharma, home care, food and beverage marketers.
To a limited extent, we use independent representation and distributors to reach smaller customers and export markets.
The business that primarily sells distribution systems and sealing solutions to the beauty, personal care and home care markets constitutes the beauty home area.
The business of selling distribution systems and sealing solutions to prescription drugs, consumer health and injection markets constitutes the pharmaceutical sector.
The business of selling distribution systems and sealing solutions from the food and beverage sector to the food and beverage market.
Each of these three business units is described in a more comprehensive way below.
According to this reporting structure, a summary of sales, Division income and total assets for each of the past three years is shown in note 17 to item 8 consolidated financial statements (
This is included by reference here).
In terms of net sales and total assets, the Beauty + Home segment accounts for 54% and 49% of AptarGroup\'s net sales and total assets, respectively.
The beauty home department mainly sells pumps, closures, aerosol valves, accessories and sealing solutions for the personal care and home care markets to the beauty market, as well as pumps and decorative components.
We believe that we are the leading supplier of most products primarily sold to the beauty, personal care and home care markets.
Table 10-2/ATR2016
KTable with beautiful content.
In 2016, sales in the beauty market accounted for about 48% of the total net sales in the segment.
The beauty market requires a wide range of spray and milk pumps, closures and sampling distribution systems to meet functional and aesthetic requirements.
We need a lot of research, time and coordination with our customers to qualify the pump for use with their products.
In the market, we expect the use of pumps to continue to increase, especially in the cosmetics and sampling industries.
In the cosmetics industry, the packaging of certain products, such as natural and organic cosmetics and anti-aging lotion, continues to provide us with growth opportunities.
We are a leading provider of packaging solutions for perfume products in the mass market.
Growth opportunities will also be provided with our makeup liquid pumps, airless dispensing systems, emulsion sampling units and decorative functions.
We see opportunities for sustained growth in Latin America, and significant growth opportunities for our sales of cosmetics applications in Asia. Personal Care.
In 2016, sales in the personal care market accounted for about 44% of the department\'s total net sales, mainly including sales of fine mist spray pumps, milk pumps, closures and continuous spray aerosol valves.
Personal care spray pump applications include hair care, body care and sun protection products.
Typical makeup pump applications include skin moisturizers, hand sanitizers, and soap.
The personal care off app includes shampoo and conditioner.
Personal care continuous spray aerosol valve applications include hair care products, deodorant, shaving cream, and sun protection products.
Our R & D team continues to design unique accessories to add value to our continuous spray aerosol valve products. Home Care.
In 2016, sales in the home care market accounted for about 8% of the department\'s total net sales, mainly including sales of continuous or metered dose spray aerosol valves, closing and spraying and milk pumps to a lesser extent.
The application of continuous spray valves includes disinfectant, painting, pesticide and automotive products.
The metering valve is used for air fresheners.
Closed applications include liquid detergents, automotive products, and household cleaners.
The application of spray and milk pump mainly includes household, insect repellent and industrial cleaner.
In terms of net sales and total assets, the PHARMAThe Pharma division is our second largest division, accounting for 32% of AptarGroup\'s net sales and total assets, and is our most profitable division.
We believe that we are the leading supplier of pumps and MDIS (“MDI’s”)
We are a rubber supplier of injection primary packaging components worldwide.
The features of this market include (i)
Government regulation of our drug customers ,(ii)
Manufacturing environment for pollution control and (iii)
From initially working with pharmaceutical companies in the molecular development phase of the drug to eventually selling to the market, it takes a lot of time and research.
We have clean room manufacturing facilities in Argentina, China, France, Germany, India, Switzerland and USA.
We are confident that providing an alternative to traditional drug forms, such as pills with value-added, convenient distribution systems, will continue to provide opportunities for our business.
Moreover, we believe that there are opportunities for growth in the past few years. the-
Counter and general drug category.
Prescription drugs.
In 2016, sales in the prescription drug market accounted for about 55% of net sales in the segment.
Pumps sold to the prescription drug market deliver drugs via nasal, oral or local delivery.
At present, most of the pumps we sell are used for nasal allergy treatment.
Recently, there has been a tendency for allergic products to shift from prescription to over-salethe-
Counter without prescription
This trend can provide us with the opportunity to grow, as this movement makes it easier for consumers to access these types of treatments.
Our nasal pumps and unit dose devices are also used to provide pain management products.
Potential opportunities to provide alternatives to traditional pill and injection drugs include vaccines, cold and flu treatments, central nervous system applications, and pump distribution systems for hormone replacement therapies.
MDI is used to allocate an exact amount of atomization drug.
This technique allows the drug to be broken down into very fine particles, which makes it usually delivered through the lung system.
At present, most of the MDI we sell is used for respiratory diseases such as asthma and chronic lung obstruction (
Chronic obstructive pulmonary disease.
We continue to develop new dispensing systems and accessories in this area.
For example, we provide a single-dose delivery device for central nervous system applications.
While we expect these types of new products to be available in the future, it is difficult to estimate when they will be available, due to the rigor of pharmaceutical regulations affecting the time when pharmaceutical customers using our distribution system introduce products.
Table 10-3/ATR2016
The content of consumer health care.
In 2016, sales in the consumer health care market accounted for about 27% of the net sales in the segment.
The application for this market is similar to the prescription market;
However, these apps are oversoldthe-
Counter without prescription
Typical consumer health care spray pump applications include nose relief agents, nasal saline and cough and cold applications.
Typical consumer care valve applications include nasal saline using our bagon valve technology.
We have developed a multi-dose ophthalmic dispensing device for an unpreserved pharmaceutical preparation.
The technology has been successfully sold in Europe, North America and Latin America and is being developed for other marketsthe-
Counter and prescription application.
Other products sold to this market include air-free pump systems for skin drug delivery applications.
We have recently seen a trend towards packaging solutions that are more suitable for children and the elderly and have developed products that meet the needs of these markets. Injectables.
In 2016, the injection market accounted for about 18% of the market segment\'s net sales.
The injection is the elastic main packaging part of the injection.
The supplied injection products include plugs for vials, pre-filled syringe components such as Pistons, needle covers, tip caps, and cartridge components.
Our recent investment in this business will enable us to sell coated plugs to better preserve the contents of vials and add value to our customers and consumers.
Drug applications in the market include vaccines, anti-thrombosis, small molecules and biological products.
The food + beverage segment is our smallest in terms of net sales and total assets, accounting for 14% and 10% of AptarGroup\'s net sales and total assets, respectively, but product growth has been strong in recent years.
We mainly sell distribution closing units, as well as non-distribution closing units, flexible flow control components, spray pumps and aerosol valves to a lesser extent.
As global consumers show a preference for packaging that takes advantage of the convenience of distribution closures, sales of distribution closures have grown.
At the same time, consumer marketers are trying to differentiate their products, such as plastic bonded aluminum lining, flow control and drip-free distribution, by integrating performance enhancements, make packaging easier to use, cleaner, and more attractive to consumers for reverse packaging and directional flow.
We also have a number of product solutions to address the growing use of flexible packaging formats. Food.
In 2016, sales in the food market accounted for about 61% of the net sales in the segment, mainly including the distribution of closures and sales of flexible flow control components.
To a lesser extent, we also sell non-dispensing closures, continuous spray aerosol valves and spray pumps to this market.
Applications for dispensing closure include sauces, condiments, baby nutrition, and food.
Applications for non-dispensing closures include pellets and powdered foods.
The application of continuous spray air mist valve includes cooking spray.
The application of the spray pump mainly includes butter or salad sauce spray. Beverage.
Sales in the beverage market accounted for about 38% of the segment\'s net sales in 2016, mainly including the distribution of sales of closed and flexible flow control components.
Sales of distribution closures to beverage markets have increased significantly over the past few years as we continue to see increased interest from marketers in their product use distribution closures.
Examples of beverage products that are currently used for distribution closure include bottled water, sports and energy drinks, juice and concentrated water condiments.
Our commitment to innovation, one of our competitive strengths, has led to a focus on R & D aimed at developing affordable, new, innovative packaging delivery solutions, and adjust existing products according to new market or customer demand.
In some cases, our customers share the R & D costs of the customer-initiated project.
Sometimes we can get from third-party technologies or products at different stages of development.
In addition to certain R & D credits, the expenditure on R & D activities was $66. 2 million, $67.
$1 million and $76.
In 2016, 2 million, 2015 and 2014 respectively.
We usually seek patent and trademark protection for our products and brands.
We have and currently have many patent and trademark applications in many parts of the world.
In addition, some of our products are produced under a patent license granted by a third party.
We believe that when we make our products, we have certain technical capabilities, which makes it difficult for competitors to copy.
While valuable to our overall product portfolio, the sale of any individual patented product is not considered important for any particular market segment or for the consolidation results of the company.
Table 10-4/ATR2016
We have technical expertise in injection molding, robotics, cleaning
Room amenities and high speed assembly.
We also have expertise in the formulation and finishing of rubber and silicone components.
In addition, we offer a variety of sterilization options for elastic components in the pharmaceutical industry.
Pumps and air mist valves need to assemble several different plastic, metal, and rubber components using high-speed equipment.
When forming plastic parts or plastic parts used in pump or air mist valve products, we use advanced plastic injection molding technology, including large air cavity plastic injection molds.
We are able to mold within the tolerance range of one in ten inches and assemble the product in a high-speed, cost-effective manner.
We are an expert in forming liquid silicone for certain dispensing closures and for the formulation and production of rubber washers that are mainly used in the prescription drug and consumer health markets.
Most of the products we produce globally are outside the US.
Our philosophy is to produce as much as possible in the area to be sold.
To increase capacity and maximize utilization of internal capacity (
Especially plastic injection molding)
We use subcontractors to supply certain plastic, metal and rubber components.
Certain suppliers of these components have unique technical capabilities, which makes us dependent on them, especially the production of aerosol valves and pumps.
The main raw materials we produce are plastic resin, rubber and certain metal products.
We believe that sufficient supply of such raw materials can be obtained from existing and alternative sources.
We try to offset the cost increase by increasing productivity and increasing the sales price, if market conditions or contract commitments allow.
Our medicines often use plastic resin and rubber parts that are specifically recognized by our customers.
Significant delays in receiving these components or suspending approved raw materials will require us to look for alternative sources, which may result in increased costs and affect our ability to supply products in the short termterm.
Our sales are mainly based on the standard purchase order for the delivered product.
While most of the orders we receive are ready for delivery within 120 days, we continue to experience the trend of a shortened lead time required by our customers.
Some customers placed a package of orders that exceeded the delivery deadline.
However, deliveries against purchase orders may change and only a small portion of the order backlog cannot be canceled.
The dollar amount associated with the non-Cancelled portion is not important.
Therefore, we do not consider the backlog of any particular date to be an accurate indicator of future results.
Customer we have about 5,000 customers, none of which is a customer or affiliate group, accounting for more than 6% of net sales in 2016.
Our customer base has been consolidated and this trend is expected to continue.
Due to the breadth of our product line, our international reach, and our long term relationship with certain customers, customer concentration provides opportunities to increase sales.
However, the integration of our customers can lead to pricing pressures, a concentration of credit risks, and reduced opportunities to introduce new products to the market.
International business our manufacturing and sales business in Asia, Europe, Latin America is geographically different (
Including Mexico)
And North America.
Europe is we maximum of area as at December 31, 2016 2015 and 2014 of sales respectively about for 57%, 56% and 58%.
Asia and Latin America together accounted for about 16%, with combined revenues of 17% and 17% ending with 2015 and 2014 respectively in December 31, 2016.
Export sales from the United States were $165. 1 million, $151.
$2 million and $161.
In 2016, 4 million, 2015 and 2014 respectively.
We are a net exporter of goods from the United States. S.
It is a net importer of goods in Asia and Latin America.
For additional financial information on geographic areas, see Note 17 in the notes to item 8 Consolidated Financial Statements (
This is included by reference here).
Due to our international presence, changes in exchange rates have had a significant impact on the translation of the financial statements of our foreign subsidiaries.
Our main foreign exchange exposure is the euro, but our foreign exchange exposure to RMB, Brazilian real, Mexican peso, Swiss franc and other Asian, European and South American currencies.
A strong AmericaS.
The dollar has a dilution effect on our financial statements relative to foreign currency.
On the contrary, the US economy is weakS.
The dollar has an additional effect.
We manage our foreign exchange risk exposure mainly through forward foreign exchange contracts, record transactions in foreign currency-denominated economic hedging and firm buying and selling commitments.
Table 10-5/ATR2016
Due to local business practices, the collection and payment period of current capital practices for our operations outside the United States is often longer.
We have also seen increasing pressure on certain customers to extend payment terms.
Since most of our products are made to order, we do not need to keep a large inventory of finished products in order to meet the requirements of our customers.
However, some of our contracts specify the quantity of finished product safety stock that we need to maintain.
Within the scope of our financial position that allows and has obvious financial benefits, we are from time to time-to-
Early payment discounts with some suppliers benefit time.
The staff and labor relations department have approximately 12,700 full-time employees.
Of the full-time staff, about 7,600 are in Europe, 3,000 are in Asia and South America, and the remaining 2,100 are in North America.
Most of our European and Latin American employees are in collective bargaining arrangements at the local or national level in their respective countries, and about 155 of North American employees negotiate agreements in collective bargaining arrangements.
Due to local regulations on severance benefits, the dismissal of employees in some of our international operations may be costly.
There was no major shutdown in 2016 and management saw our employee relationship as satisfactory.
Competitive all the markets we operate are highly competitive and we continue to experience price competition across all product lines and markets.
Competitors include private and publicly held entities from regional companies to international companies.
We hope our products will remain competitive in the market.
We believe that our competitive advantage lies in innovation, quality and service, geographical diversity and the breadth of our products.
Our manufacturing strength lies in the ability to manufacture complex plastic parts in a cost-effective manner, and to develop and complete elastic and silicone components, as well as to assemble products at high speeds.
Our business is somewhat capital intensive and Aptar\'s global manufacturing capabilities are becoming more and more important to our customers.
For new competitors who want to enter our business, both are barriers to entry.
While we have experienced some competition from low-cost Asian suppliers in Europe, Latin America and the US, especially in the low-end beauty and personal care markets, it doesn\'t matter.
While using low-cost Asian supply products may have a cost advantage, some customers prefer local suppliers on the grounds of better quality, better customer service and shorter lead times.
Environment our manufacturing business mainly includes plastic injection molding, automatic assembly process, rubber and silicone formulation and finishing, and metal anode oxidation and vacuum metalization of plastic parts to a limited extent.
Historically, these processes have had little impact on the environment and we believe that we meet the current environmental standards in all material respects.
To date, our manufacturing business has not been significantly affected by environmental laws and regulations related to the environment.
Recently, consumers and our customers have become increasingly interested and aware of environmental sustainability products, especially through the use of sustainable materials.
We are committed to reducing environmental impact through product lifecycle assessment, sustainable material testing, operating ecosystems
Efficiency planning and renewable energy procurement.
We design sustainability by providing products that improve recyclability and use less material.
Future regulations on environmental issues of recycling or material input may affect our business.
Some of our products are indirectly affected by government regulation.
The demand for aerosol and pump packaging is affected by government regulations on the release of volatile organic compounds (“VOCs”)
In the atmosphere.
Europe and the United States have regulations requiring a reduction in the number of VOCs that can be released into the atmosphere, which is likely to expand worldwide.
These regulations require some of our customers to reformulate certain aerosol and pump products, which may affect the demand for these products.
We have patents and have developed systems to use with alternative propellant and product formulations.
Table 10-6/ATR2016
Future government regulations may include health care cost control policies.
For example, a review by governments to determine the quantity or price of drugs their insurance system will pay may affect future sales to the pharmaceutical industry.
This regulation may adversely affect the price and demand of our medicines.
We believe that the cost-effectiveness of focusing on drug use, compared to surgery and hospital admissions, provides us with an opportunity to expand the market for drugs.
As of February 27, 2017, the executive officer is as follows: name with president and chief executive officer of Company stephan tanda51
Tanda has served as president and chief executive since February 2017.
Before that, sir.
Tanda is the executive managing director of Royal dsm nv, a leading global supplier of ingredients and materials solutions for food, dietary supplements, personal care, medical devices, automobiles, paints, Electronics & bio
Material Market from March 2007 to January 2017.
Executive Vice President, Chief Financial Officer and Secretary.
Cohn has served as executive vice president and chief financial officer since September 2008. Mr.
Cohn has served as secretary since June 2011.
Aptar Beauty housewife Eldon Schaffer51President.
Schaffer has been president of Aptar Beauty house since January 2016.
Before that, sir.
Schaffer served as president of Aptar Food and Beverage from 2012 to 2015 and president of Aptar Beauty House North America from 2010 to 2011.
Gail Touya47President, food BeverageMr for Aptar.
Touya has been president of Aptar Food and beverage since January 2016.
Before that, sir.
Touya served as president of Aptar Food & Beverage Europe from 2012 to 2015 and vice president of skin care and color cosmetics business development from 2010 to 2011.
Sanlin Haffar43President, Aptar PharmaMr.
Haffar has served as president of Aptar Pharma since January 2014.
From 2012 to 2013
Haffar works with Capsugel, a leading pharmaceutical supplier of gelatin capsules in the oral drug delivery industry.
From 2010 to 2012, he was president of the Aptar Pharma prescription department.
Ms. usura St. Ledger 53, vice president of human resources
Saint-leig has served as vice president of human resources since October 2010.
Mr. Stephen Harg 65, special adviser to the chief executive
Hagge has been a special advisor to the chief executive since February 2017 and is expected to hold the position by March 31, 2017.
Before that, sir.
Hagge was President and CEO from 2012 to 2017, chief operating officer from 2008 to 2011, executive vice president from 1993 to 2011, and secretary from 1993 to 2011.
There is no arrangement or understanding between any executive officer and any other person (s)
These officials were elected.
Table 10-7/ATR2016
KTable for ContentsITEM 1A.
The following and the risk factors listed in this report and other documents we submit to the Securities and Exchange Commission are risks and uncertainties, these risks and uncertainties may lead to our actual results with forward-looking statements contained in this report and other documents we submit to the Securities and Exchange Commission.
Additional risks and uncertainties that we do not currently know or that we currently consider irrelevant may also harm our business operations.
Before purchasing any shares of our common stock, in addition to the other information contained in this Report About form 10-K, you should also carefully consider the following factors.
Factors that affect the results of operations or operations if the economic conditions of a particular region or market deteriorate, our business and operational results may be materially adversely affected.
Due to our strong balance sheet, diversified supply of products, various end markets offered and our extensive geographic location, we believe we have the ability to withstand slowness in any particular region or market.
However, economic uncertainty affects businesses like us in many ways, which makes it difficult for us to accurately predict and plan our future business activities.
The credit crunch in financial markets or other factors may cause consumers and businesses to delay spending, which may cause our customers to cancel, reduce or postpone their existing orders and future orders here with us.
In addition, financial difficulties experienced by our suppliers, customers or distributors may result in product delays, increased receivables defaults, inventory or supply challenges, and pricing pressures.
Supply disruptions may also affect our ability to meet customer needs.
Changes in consumer demand for our customers\' products and consumer preferences are unpredictable and may have a negative impact on the needs of our customers and our customers for our products.
We are facing fierce global competition, and our market share may decline.
All the markets we operate are highly competitive and we continue to experience price competition across all product lines and segments.
Competitors include private and public entities.
Our competitors are mainly regional and international companies.
If we are not able to compete successfully, our market share may decline, which may have a significant adverse effect on our operating results and our financial position.
Geopolitical conditions, including direct or indirect acts of war or terrorism, may have a significant adverse effect on our actions and financial results.
Geopolitical conditions such as international resistance and sanctions, acts of war, terrorist activities or other similar events may undermine our actions.
These events may make it difficult or impossible for us to manufacture or deliver products to our customers, receive production materials from our suppliers, or perform critical functions, this may adversely affect our operations globally or in some regions.
While we maintain similar manufacturing capabilities at different locations and coordinate multi-source supplier plans on many of our materials, this will enable us to better respond to these types of events, we cannot be sure that our plan will completely protect us from all this interference.
In addition, our customers may use the dispensing equipment we sell in other regions to export their finished products, and adverse geopolitical events may affect the sales of our customers\' products, thus indirectly to our point solution.
We have the risk of foreign currency translation and trading that can have a significant adverse impact on our operating results.
Most of our business is outside the United States.
Therefore, changes in the exchange rate may have an impact on the translation of the financial statements of our foreign entities.
Our main foreign exchange exposure is the euro, but our foreign exchange exposure to RMB, Brazilian real, Mexican peso, Swiss franc and other Asian, European and South American currencies.
A strong AmericaS.
The dollar has a dilution effect on our financial statements relative to foreign currency.
On the contrary, the US economy is weakS.
The dollar has an additional translation effect.
In some cases, we sell the product in a currency that is different from the associated cost.
We manage our foreign exchange risk exposure mainly through forward foreign exchange contracts in order to financially hedge certain transactions and firm buying and selling commitments denominated in foreign currency.
Fluctuations in the currency exchange rate may have a significant impact on our operating results.
Government regulation of environmental issues with recycling or environmental sustainability policies may affect our business.
In the future, the government stipulates that the use or restriction of certain materials may affect our manufacturing process or the technology we use, forcing us to re-invest in alternative materials or assets used to produce products.
In the future, government regulations on medical cost control policies may affect our drug sales.
The government\'s review of the quantity and price of drugs that its insurance system will pay may affect future sales to the pharmaceutical industry, thus adversely affecting the price and demand of our drugs.
The integration of our customer base may affect our business.
We believe that due to the breadth of our product line, our international reach and our long-term relationship with certain customers, M & A within our customer base creates opportunities for increased sales.
However, the integration of our customers can lead to pricing pressures, a concentration of credit risks, and reduced opportunities to introduce new products to the market.
Form 10-8/ATR2016
If our expansion plan is not successful, the results and reputation of our operations may be affected.
We are expanding our business in multiple markets, including facilities in North America, Europe and Asia.
Expanding our business requires a lot of time and attention from our senior management and/or capital investments.
These activities pose considerable challenges and risks, including the overall economic and political conditions of the markets we enter, attracting, training and retaining qualified and talented employees, infrastructure disruption, currency exchange rate fluctuations, restrictions imposed by government authorities, compliance with current policies, new and changing government laws and regulations and the cost of such compliance activities.
If any of our expansion efforts fail, the results and reputation of our operations may be affected.
The success or failure of our customers\' products, especially those in the pharmaceutical market, may have a significant impact on our operating results and financial situation.
In the pharmaceutical market, the proprietary nature of our customers\' products and the success or failure of their products to use our distribution system in the market may have a significant impact on our operational results and financial situation.
We may be working on modifying our dispensing device to work with the client\'s pharmaceutical preparations for many years.
If the customer\'s drug is not approved by the regulatory authority or is not successful in the market, the relevant costs may not be recovered.
The increase in raw material costs and other inputs, as well as our inability to increase sales prices, may have a significant adverse effect on our operating results and our financial position.
Cost of raw materials and other inputs (
In particular, the cost of plastic resin, rubber, metal, Anode Oxidation and transportation and energy costs)
Due to factors beyond our control, such as changing economic conditions, currency fluctuations, weather conditions, political unrest and instability in energy-producing countries, supply and demand pressures.
The cost of raw materials may increase in the next few years, although we are usually able to increase the selling price to cover the increased cost, future market conditions may prevent us from passing on these increased costs to our customers through timely price increases.
In addition, we may not be able to increase productivity or achieve sufficient savings from our cost reduction plan to offset the impact of increased raw material costs.
Therefore, the increase in the cost of raw materials may lead to a decline in profit margins and operating results.
In difficult market conditions, our fixed cost structure and potential lower income may have a negative impact on our results.
Our business is characterized by relatively high fixed costs, and although we take advantage of third-party manufacturing capabilities, most of our production requirements are met through our own manufacturing facilities.
In difficult environments, the utilization rate of our manufacturing facilities has generally declined due to reduced product demand.
During this period, our factory did not operate at full capacity, and the costs associated with this excess capacity were directly included in the sales costs.
The difficult market environment in the future may adversely affect our utilization rate, thus affecting our future gross profit margin, which in turn may have a significant negative impact on our business, financial status and results of operations.
If our union employees go on strike or other stoppages, our business, results of operations and financial position may be materially adversely affected.
Most of our European and Latin American employees are covered by collective bargaining arrangements at the local or national level in their respective countries, and about 155 of our North American employees are covered by collective bargaining negotiation agreements.
Although we believe that our relationship with our employees is satisfactory, we cannot guarantee that it will continue.
In the event of a dispute with our union, or if our union workers go on strike or other stoppages, we may incur higher labor costs or experience significant disruption to operations, this can have a significant adverse effect on our business, operational results and financial position.
Single-source materials and manufacturing locations may adversely affect our ability to deliver our products.
The company purchases certain materials from a single source, in particular some of the resin and rubber components in our pharmaceutical sector.
Any interruption in the supply of these materials will adversely affect our ability to deliver products to our customers.
Again, we have certain components and/or products that are manufactured in a single location or from a single machine or mold.
Any disruption to the manufacturing process will also adversely affect our ability to deliver products to our customers.
If we make a major product liability claim outside of our current coverage, our business, operating results and financial position may be materially adversely affected.
Failure of our equipment to operate as expected may result in a claim for liability for our products.
We believe that the level of our product liability insurance is sufficient.
Claims for product liability beyond our coverage or outside of existing coverage may have a significant adverse effect on our business, operational results and financial position.
Table 10-9/ATR2016
The increase in cyber security threats can pose risks to our operations.
The increase in global information security threats and more complex and targeted computer crimes pose a risk to the secrecy, availability and integrity of our data, operations and infrastructure.
We continue to assess potential threats and invest by taking some security measures, including staff training, comprehensive monitoring of our networks and systems, to reduce the risk of these threats, maintenance of backup and protection systems.
We also regularly test whether there are bugs in our system and sometimes use third parties for such tests.
So far, we have not seen a significant impact of these threats on our business or operations;
However, we cannot guarantee that our security work will prevent unauthorized access or our third
The party\'s supplier system.
Even with these mitigation measures, our information systems may still be vulnerable to complex cyber security threats.
Depending on its nature and scope, such threats may result in the leakage of confidential information, improper use of our systems and networks, manipulation and destruction of data, production downtime and operational disruption, this, in turn, may adversely affect our reputation, our competitive power, and our operational results.
As of December 31, 2016, our recorded goodwill was about $0. 408 billion, and future changes in business conditions may result in damage to the asset and need to be debited to reduce our operating income.
We evaluate the recoverable nature of goodwill amounts each year, or more frequently when there is evidence of potential impairment.
The impairment test is based on several factors that need to be judged.
A reduction in the expected reporting unit cash flow or changes in market conditions may indicate that recorded goodwill may be compromised and, therefore, our operating results may be materially adversely affected.
For more information, see \"key accounting estimates\" in PartII, item 7 \".
In many jurisdictions we operate, we all have to comply with tax regulations, and changes in tax regulations can have a significant impact on our results.
Future changes in the tax law may affect our provisions on income tax, tax payable, and balance of deferred tax assets and liabilities.
Recent proposals for reducing U. S. debtS.
The corporate income tax rate includes taxes on outstanding income.
We currently have $1.
5 billion of the outstanding foreign income, the tax on these income may have a significant impact on our results.
Factors affecting the ownership of APTARGROUP shares by certain important shareholders.
At present, Aptar has four institutional shareholders, each holding between 5% and 11% of our outstanding common stock.
None of these shareholders is a direct representative of our board of directors.
If one of these shareholders decides to sell a large number of our shares, this could put downward pressure on the price of the shares. ITEM 1B.
Unresolved employee reviews the company has no unresolved comments from the SEC.
Form 10-10/ATR2016
KTable 2 of the content.
We rent or own our main office and manufacturing facilities.
All principal property owned is not subject to a lien or other burden of property that we operate.
We believe that the existing operating lease will be renegotiated after it expires and will be obtained through the purchase option, or the appropriate alternative property will be leased on acceptable terms.
We believe that the conditions and extent of use of our manufacturing facilities and other properties are generally good, and our factory\'s capabilities are sufficient to meet the needs of our business.
By country, the location of our main manufacturing facilities is as follows: Argentinian1& 2)Böhringen (1& 2)Madrid (1)Tortuguitas (1& 3)Dortmund (1)Torello (1& 3)Eigeltingen (2)BRAZILFreyung (1& 3)
Switzerland (1)Menden (1)Mezzovico (2)Malinga Barana (1& 3)Villingen-Schwenningen (1 & 2)Jundiai (1)
Thailand and India (1)
Malaysia, China (1)Suzhou (1, 2& 3)Hyderabad (1& 3)
United Kingdom of Mumbai (2)Leeds, United Kingdom (1& 3)COLOMBIACali (1)
INDONESIAUNITED STATESCikarang, Bakassi (1)Cary, Illinois (1, 2& 3)
Czech Republic in New York (2)Ckyne (1& 3)
IRELANDEatontown, New Jersey1 & 2)
Ballinasloe, Galway County (1)
Libertiville, Illinois (1& 3)
North Carolina (3)Annecy (1& 2)
ITALYMcHenry, Illinois (1& 2)Brecey (2)Manoppello (1)
Midland, Michigan (1& 3)Charleval (1& 2)
San Giovanni Tino (Chieti)(1& 3)
Magonago, Wisconsin (1, 2& 3)Granville (2)
Strafu, Connecticut (1)Le Neubourg (1)
Mexico Torrington, Connecticut (1)Le Vaudreuil (2)Queretaro (1& 3)
Watertown, Connecticut (1)Oyonnax (1)Poincy (1& 3)
(Russia)1)Vladimir (1& 3)(1)
Facilities in the field of beauty home manufacturing location. (2)
Manufacturing locations for facilities in the pharmaceutical sector. (3)
Facility manufacturing location of food and beverage department.
In addition to the ones listed above, we also have sales staff in other countries.
Our company office is located in Crystal Lake, Illinois. ITEM 3.
In the normal course of business, the company will be subject to some actual and potential lawsuits and claims.
While management believes that the resolution of these claims and proceedings will not have a significant adverse effect on the company\'s financial position or operating results or cash flow, claims and legal proceedings are affected by inherent uncertainties, adverse results may occur, including amounts beyond any accrued items determined by management.
If such adverse final results occur, they may have a significant adverse effect on our financial position, operating results and cash flow. ITEM 4.
Mine safety disclosure is not applicable.
Table 10-11/ATR2016
KTable for ContentsPART IIITEM 5.
The common stock market of the registrant, related shareholder matters and the common stock market of the issuer to purchase the registrant. Your common stock is traded on the New York Stock Exchange with the trade symbol ATR.
Information about the market price of our common stock and the declared dividend can be found in Note 20 to item 8\'s consolidated financial statements (
This is included by reference here).
As of February 20, 2017, we had approximately 230 holders of common stock.
More of the holders of our common stock are \"street names\" or beneficiary holders whose record shares are held by banks, brokers and other financial institutions.
Employees of Aptargroup UK Holdings Limited recently sold unregistered securities (French Branch)
And Francis Aptar. A. S.
Our subsidiaries are eligible to participate in the FCP Aptar Savings Program (the “Plan”).
All eligible participants are outside the United States.
Independent agents purchase shares of common stock available under the cash plan in the open market and we do not issue shares.
Under the scheme, we do not receive any proceeds from the purchase of common stock.
The agent for the program is BNP Paribas fund services.
Under the plan, no underwriters were used.
The sale of all shares depends on the exemption registration of the Securities Act of 1933 under the regulations promulgated by the act.
In the quarter ended December 31, 2016, the program purchased 4,460 shares of our common stock on behalf of participants at an average price of $73.
$23 per share for a total of $327,000 representing participants who did not sell shares of our common stock.
The plan holds 70,622 shares of our common stock as of December 31, 2016.
On October 20, 2016, the company announced a share repurchase authorization of up to $0. 35 billion of common stock.
This authorization replaces the previous authorization and there is no expiration date.
AptarGroup can repurchase shares through open markets, privately negotiated transactions or other plans, depending on market conditions.
On December 16, 2014, the company reached an agreement to repurchase about $0. 25 billion of common stock under the accelerated share repurchase plan (
\"ASR program \").
ASR plans to be part of the company\'s first $0. 35 billion share repurchase authorization announced in October 30, 2014.
In December 17, 2014, the company paid Wells Fargo $0. 25 billion. A. (“Wells Fargo”)
In exchange for about 3.
1 million shares.
In September 25, 2015, the company settled the ASR program with Wells Fargo and received about 719,000 additional shares.
The total number of shares repurchased under the ASR plan is approximately 3 shares.
8 million shares.
Shares bought back after ASR plans have withdrawn immediately.
The company spent $46.
6 million repurchase of approximately 628,000 shares in fourth quarter of 2016.
The following table summarizes the Company\'s quarterly securities purchases as of December 31, 2016: US dollar valueinmillions)10/1-10/31/16-$——
$11/1-11/30/1612/1-12/31/16 total $12/ATR2016 Form 10-
The KTable chart of ContentsSHARE performance shows a five-year comparison of AptarGroup common stock cumulative shareholder total return with the cumulative total return of the S & P 500 index and the index of our chosen peer group company.
The companies included in the peer group are:. Schulman, Inc.
AEP Industries, USA
, Bemis
Berry plastic Group Co. , Ltd.
Crown Holdings Ltd.
GreifInc Graphic Packaging Holdings. , H. B.
Fuller International Flavor & fragrance company
Illinois company in Irving
Packaging Company of America, PH Glatfelter Co.
Seal airlines siergen Holdings Limited
, Sonoco Products, TriMas and Western medicine services
5-year comparison of cumulative shareholder returns click to enlarge the chart and other information provided in this section titled \"stock performance, item 5 of 10-K in this form shall not be considered as \"requesting\" material or \"submitting\" to the Securities and Exchange Commission or as subject to regulation 14a or 14C, or liabilities to the amended section of the Securities Trading Act of 1934.
Form 10-13/ATR2016
KTable 6 for content.
Selected Financial Data are aggregated in millions over five years, except for data per share, as of December31, Income Statement Data: Net Sales
Excluding Depreciation and amortization shown below)(1)
Depreciation and amortization of sales, R & D and management as a percentage of net sales (2)
Net Sales % restructuring plan-——% of Net Sales———
% Of net income from operating income to net sales % of net sales attributable to AptarGroup, Inc. % of net income
Percentage of net sales to AptarGroup, Inc. Net Income
Common Stock per share: Basic Diluted Balance Sheet and Other Data: capital expenditure
Net debt (3)AptarGroup,Inc.
Equity capital expenditure of shareholders as a percentage of net sales and interest as a percentage of total capital (4)
Net debt as a percentage of net capital (5)
Cash dividends declared per share of common stock (1)
Sales costs include $7.
4 million due to changes in accounting methods related to our inventory accounting methods, the cost was reduced by 2015. (2)
Depreciation and amortization include $2. $7 million and $1.
6 million and 2012 of accelerated depreciation related to the European restructuring plan for the year ended December 31, 2013. (3)
Net debt minus cash and cash equivalents. (4)
Total capital is AptarGroup, Inc.
Equity of shareholders plus interest on debt. (5)
Net worth is AptarGroup, Inc.
Equity added net debt.
Table 10-14/ATR2016
KTable of content 7.
Management\'s Discussion and Analysis of financial status and operational results (
Thousands of Dollars, except for the amount per share or otherwise stated)
The purpose of the following Management\'s Discussion and Analysis of the consolidated results of operations and financial position (“MD&A”)
To help readers understand the financial performance of AptarGroup, Inc.
MD & A is divided into eight parts: overview, results of operations, liquidity and capital resources, off-balance sheet arrangements, Overview of contractual obligations, recently issued accounting statements, key accounting estimates, operational outlook and forward-looking statements.
MD & A shall be read in conjunction with our consolidated financial statements and notes to consolidated financial statements contained elsewhere in this 10 k annual report.
In MD & A, we, AptarGroup, Inc . \"
\"Aptar\" and \"Company\" refer to AptarGroup, Inc.
And its merged subsidiaries.
Overview we are a leading global supplier providing a wide range of innovative packaging distribution and sealing solutions for beauty, personal care, home care, prescription drugs, consumer care, injections, catering market.
Our creative packaging solutions enhance the convenience, safety and security of consumers around the world, enabling our customers to differentiate their products in the market.
In addition to the information provided here that meets US standardsS.
GAAP, we also provide some financial information that does not conform to US accounting standardsS.
Recognized accounting principles, known as non-U. S.
GAAP Financial indicators.
Management may assess our financial results in the United States. S.
On the basis of non-recognized accounting principlesU. S. GAAP basis.
We believe that theseU. S.
GAAP financial measures, because they allow for a better comparison of operational results over a period of time by eliminating the impact of projects that management believes do not reflect Aptar\'s core operational performance. These non-U. S.
GAAP Financial indicators should not be considered separately and should not be considered as a substitute for US accounting standardsS.
GAAP financial results, but should be read in conjunction with audited consolidated income statements and other information submitted in this report.
Investors are careful not to rely too much on theseU. S. GAAP measures.
In addition, we urge investors to carefully review and consider the management\'s adjustments to the most directly comparable US stock exchangeS.
GAAP Financial indicators to draw theseU. S.
GAAP Financial indicators.
See reconciliationU. S.
GAAP is measured from page 22.
It was reported that sales rose 1% to $2 in the year ended December 31, 2016.
33 billion from $2.
32 billion a year ago.
Excluding the negative impact of exchange rate changes and the positive impact of acquisitions, core sales are even flat with the previous year.
Coordination between core sales growth and reported net sales growth, the most direct comparable growth in the United StatesS.
GAAP measures, which can be continued on the web page.
Due to the weak market, 2016 is a difficult year for our beauty home sector to achieve growth.
We have achieved outstanding performance from the acquired large airless business, which will continue to play an important role in the growth in this area, and we have deployed new technologies with great potential.
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