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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM 10-Q
(Mark One)
☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2024
or
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to

Commission File Number 1-8036

WEST PHARMACEUTICAL SERVICES, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania23-1210010
 (State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification Number)
530 Herman O. West Drive, Exton, PA
19341-1147
(Address of principal executive offices)(Zip Code)

Registrant’s telephone number, including area code: 610-594-2900
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.25 per shareWSTNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.          Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).                      Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☑ Accelerated filer☐
Non-accelerated filer
☐Smaller reporting company☐
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.                                                      ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☑
As of July 22, 2024, there were 72,541,593 shares of the registrant’s common stock outstanding.

TABLE OF CONTENTS
  Page
 
ITEM 1. 
 
 
 
 
 
ITEM 2.
ITEM 3.
ITEM 4.
   
 
ITEM 1.
ITEM 1A.
ITEM 2.
ITEM 6.
   
   

2
PART I. FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
West Pharmaceutical Services, Inc. and Subsidiaries
(in millions, except per share data)

 Three Months Ended
June 30,		Six Months Ended
June 30,
 2024202320242023
Net sales$702.1 $753.8 $1,397.5 $1,470.4 
Cost of goods and services sold472.1 462.4 937.3 907.7 
Gross profit230.0 291.4 460.2 562.7 
Research and development17.5 16.5 35.1 33.6 
Selling, general and administrative expenses83.0 88.4 169.7 174.4 
Other expense (income) (Note 14)3.3 4.0 6.4 16.9 
Operating profit126.2 182.5 249.0 337.8 
Interest expense, net1.5 2.7 3.1 4.9 
Interest income(4.0)(5.0)(10.2)(9.8)
Other nonoperating (income) expense— (0.1)— (0.1)
Income before income taxes and equity in net income of affiliated companies128.7 184.9 256.1 342.8 
Income tax expense21.9 34.8 38.3 58.4 
Equity in net income of affiliated companies(4.5)(5.0)(8.8)(10.7)
Net income$111.3 $155.1 $226.6 $295.1 
Net income per share:   
Basic$1.52 $2.08 $3.09 $3.96 
Diluted$1.51 $2.06 $3.06 $3.91 
Weighted average shares outstanding:    
Basic73.0 74.3 73.3 74.4 
Diluted73.7 75.4 74.0 75.5 

See accompanying notes to condensed consolidated financial statements.
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
West Pharmaceutical Services, Inc. and Subsidiaries
(in millions)
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2024202320242023
Net income$111.3 $155.1 $226.6 $295.1 
Other comprehensive (loss) income, net of tax:   
Foreign currency translation adjustments, net of tax of $0.7, $1.3, $1.7 and $1.5, respectively
(21.7)(11.3)(68.0)4.0 
Defined benefit pension and other postretirement plan adjustments, net of tax of $(0.1), $(0.3), $(0.1), and $(0.5), respectively
(0.2)(0.9)(0.4)(1.4)
Net loss on equity affiliate accumulated other comprehensive income, net of tax of $0.0, $0.0, $0.0 and $0.0, respectively
(0.1)(0.1)(0.2)(0.1)
Net loss on derivatives, net of tax of $0.3, $(1.0), $(0.4) and $(1.1), respectively
(2.6)(2.8)(4.5)(3.0)
Other comprehensive (loss) income, net of tax(24.6)(15.1)(73.1)(0.5)
Comprehensive income$86.7 $140.0 $153.5 $294.6 

See accompanying notes to condensed consolidated financial statements.
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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
West Pharmaceutical Services, Inc. and Subsidiaries
(in millions, except per share data)June 30,
2024		December 31,
2023
ASSETS  
Current assets:  
Cash and cash equivalents$446.2 $853.9 
Accounts receivable, net479.4 512.0 
Inventories419.2 434.7 
Other current assets138.2 135.8 
Total current assets1,483.0 1,936.4 
Property, plant and equipment2,863.6 2,738.0 
Less: accumulated depreciation and amortization1,369.9 1,324.7 
Property, plant and equipment, net1,493.7 1,413.3 
Operating lease right-of-use assets110.3 99.2 
Investments in affiliated companies198.2 210.0 
Goodwill107.3 108.5 
Intangible assets, net12.9 15.1 
Deferred income taxes33.9 25.7 
Other noncurrent assets50.1 21.3 
Total Assets$3,489.4 $3,829.5 
LIABILITIES AND EQUITY  
Current liabilities:  
Notes payable and other current debt$132.9 $134.0 
Accounts payable211.7 242.4 
Accrued salaries, wages and benefits82.9 105.9 
Income taxes payable16.9 16.6 
Operating lease liabilities20.3 17.7 
Other current liabilities169.0 155.2 
Total current liabilities633.7 671.8 
Long-term debt72.9 72.8 
Deferred income taxes13.7 12.7 
Pension and other postretirement benefits29.1 29.6 
Operating lease liabilities84.6 84.5 
Deferred compensation benefits15.5 18.6 
Other long-term liabilities63.1 58.5 
Total Liabilities912.6 948.5 
Commitments and contingencies (Note 16)
Equity:
Preferred stock, 3.0 million shares authorized; 0 shares issued and outstanding
— — 
Common stock, par value $0.25 per share; 200.0 million shares authorized; shares issued: 75.3 million and 75.3 million as of June 30,2024 and December 31, 2023, respectively; shares outstanding: 72.6 million and 73.5 million as of June 30, 2024 and December 31, 2023, respectively
18.8 18.8 
Capital in excess of par value33.5 120.2 
Retained earnings3,720.9 3,523.4 
Accumulated other comprehensive loss(216.9)(143.8)
Treasury stock, at cost (2.7 million and 1.8 million shares)
(979.5)(637.6)
Total Equity2,576.8 2,881.0 
Total Liabilities and Equity$3,489.4 $3,829.5 
See accompanying notes to condensed consolidated financial statements.
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
West Pharmaceutical Services, Inc. and Subsidiaries
(in millions)
 Six Months Ended
June 30,
 20242023
Cash flows from operating activities:  
Net income$226.6 $295.1 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation72.7 64.3 
Amortization1.8 1.4 
Stock-based compensation9.3 16.0 
Loss on disposal of plant— 11.6 
Asset impairments0.9 3.4 
Other non-cash items, net(7.6)(12.4)
Changes in assets and liabilities
(20.5)(72.1)
Net cash provided by operating activities283.2 307.3 
Cash flows from investing activities:  
Capital expenditures(190.8)(157.5)
Other, net(1.0)(6.7)
Net cash used in investing activities(191.8)(164.2)
Cash flows from financing activities:  
Borrowings of long-term debt35.0 — 
Repayments of long-term debt(36.1)(1.1)
Principal repayments on finance leases(22.9)— 
Dividend payments(29.3)(28.2)
Proceeds from stock-based compensation awards19.9 24.0 
Employee stock purchase plan contributions3.7 3.5 
Shares purchased under share repurchase programs(454.1)(233.5)
Shares repurchased for employee tax withholdings(5.5)(12.5)
Net cash used in financing activities(489.3)(247.8)
Effect of exchange rates on cash(9.8)6.7 
Net decrease in cash and cash equivalents(407.7)(98.0)
Cash, including cash equivalents at beginning of period853.9 894.3 
Cash, including cash equivalents at end of period$446.2 $796.3 

See accompanying notes to condensed consolidated financial statements.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1:  Basis of Presentation

Basis of Presentation: The condensed consolidated financial statements included in this report are unaudited and have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting and U.S. Securities and Exchange Commission (“SEC”) regulations. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, these financial statements include all adjustments, which are of a normal recurring nature, necessary for a fair statement of the financial position, results of operations, cash flows and the change in equity for the periods presented. The condensed consolidated financial statements for the three and six months ended June 30, 2024, should be read in conjunction with the consolidated financial statements and notes thereto of West Pharmaceutical Services, Inc. and its majority-owned subsidiaries (which may be referred to as “West”, the “Company”, “we”, “us” or “our”) appearing in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”). The results of operations for any interim period are not necessarily indicative of results for the full year.

Note 2:  New Accounting Standards

Standards Issued Not Yet Adopted

In November 2023, the Financial Accounting Standards Board ("FASB") issued guidance that seeks to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendment enhances interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. This guidance is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024. We are currently evaluating the impact of this guidance on our financial statements and disclosures. The Company does not expect the adoption to have a material impact on the consolidated financial statements and disclosures.

In December 2023, the FASB issued guidance that seeks to enhance income tax disclosures to provide information to better assess how an entity's operations and related tax risks affect its tax rate and prospects for future cash flows. Within the income tax rate reconciliation, the amendment requires disclosure of additional categories and greater detail about individual reconciling items over a specified threshold. It also requires information pertaining to taxes paid to be disaggregated for federal, state, and foreign taxes and further disaggregated for specific jurisdictions over a specified threshold. This guidance is effective for fiscal years beginning after December 15, 2024. We are currently evaluating the impact of this guidance on our financial statements and disclosures, but we do not expect the adoption to have a material impact on the consolidated financial statements other than the expanded footnote disclosure.

Note 3:  Revenue

Our revenue results from the sale of goods or services and reflects the consideration to which we expect to be entitled in exchange for those goods or services. We record revenue based on a five-step model, in accordance with Accounting Standards Codification (“ASC”) 606. Following the identification of a contract with a customer, we identify the performance obligations (goods or services) in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize the revenue when (or as) we satisfy the performance obligations by transferring the promised goods or services to our customers. A good or service is transferred when (or as) the customer obtains control of that good or service.

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The following table presents the approximate percentage of our net sales by market group:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Biologics
36 %
37 %
37 %
36 %
Generics
 18 %
20 %
18 %
20 %
Pharma
26 %
25 %
25 %
26 %
Contract-Manufactured Products
20 %
18 %
20 %
18 %
100 %
100 %
100 %
100 %

The following table presents the approximate percentage of our net sales by product category:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
High-Value Product Components
46 %
49 %
46 %
50 %
High-Value Product Delivery Devices
11 %
12 %
11 %
10 %
Standard Packaging
23 %
21 %
23 %
22 %
Contract-Manufactured Products
20 %
18 %
20 %
18 %
100 %
100 %
100 %
100 %

Due to the Company's reassessment of product categories, beginning in the second quarter of 2023 certain product types have been moved from High-Value Product Components to High-Value Product Delivery Devices. No adjustments were made to the product categorization prior to the second quarter of 2023.

The following table presents the approximate percentage of our net sales by geographic location:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Americas
43 %
44 %
43 %
44 %
Europe, Middle East, Africa
48 %
46 %
48 %
47 %
Asia Pacific
9 %
10 %
9 %
9 %
100 %
100 %
100 %
100 %

Contract Assets and Liabilities

The following table summarizes our contract assets and liabilities:
($ in millions)
Contract assets, December 31, 2023
$21.5 
Contract assets, June 30, 2024
22.6 
Change in contract assets - increase (decrease) $1.1 
Deferred income, December 31, 2023
$(53.9)
Deferred income, June 30, 2024
(52.2)
Change in deferred income - decrease (increase)$1.7 

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Contract assets are included within other current assets and deferred income is included within other current liabilities and other long-term liabilities. During the six months ended June 30, 2024, $24.2 million of revenue was recognized that was included in deferred income at the beginning of the year.

The majority of the performance obligations within our contracts are satisfied within one year or less. Performance obligations satisfied beyond one year are not material as of June 30, 2024.

Note 4:  Net Income Per Share

The following table reconciles the shares used in the calculation of basic net income per share to those used for diluted net income per share:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in millions)2024202320242023
Net income$111.3 $155.1 $226.6 $295.1 
Weighted average common shares outstanding73.0 74.3 73.3 74.4 
Dilutive effect of equity awards, based on the treasury stock method
0.7 1.1 0.7 1.1 
Weighted average shares assuming dilution73.7 75.4 74.0 75.5 

During the three months ended June 30, 2024 and 2023, there were 0.3 million and 0.1 million shares, respectively, from stock-based compensation plans not included in the computation of diluted net income per share because their impact was antidilutive. There were 0.3 million and 0.1 million antidilutive shares outstanding during the six months ended June 30, 2024 and 2023, respectively.

In February 2023, the Board of Directors approved a share repurchase program under which we may repurchase up to $1.0 billion in shares of common stock. The share repurchase program does not have an expiration date under which we may repurchase common stock on the open market or in privately-negotiated transactions. The number of shares to be repurchased and the timing of such transactions will depend on a variety of factors, including market conditions.

During the three months ended June 30, 2024, we purchased 509,336 shares of our common stock under the program at a cost of $187.1 million, or an average price of $367.48 per share. During the six months ended June 30, 2024, we purchased 1,239,015 shares of our common stock under the program at a cost of $454.1 million, or an average price of $366.53 per share.

During the three months ended June 30, 2023, we purchased 492,710 shares of our common stock under the program at a cost of $173.4 million, or an average price of $351.82 per share. During the six months ended June 30, 2023, we purchased 676,070 shares of our common stock under the program at a cost of $233.5 million, or an average price of $345.33 per share.

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Note 5:  Inventories

Inventories are valued at the lower of cost (on a first-in, first-out basis) or net realizable value. Inventory balances were as follows:
($ in millions)June 30,
2024		December 31,
2023
Raw materials$173.7 $172.3 
Work in process81.1 87.3 
Finished goods164.4 175.1 
 $419.2 $434.7 

Note 6:  Leases

A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The definition of a lease embodies two conditions: 1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property, plant, and equipment); and 2) the customer has the right to control the use of the identified asset. Lease payments included in the measurement of the lease right-of-use assets and lease liabilities are comprised of fixed payments (including in-substance fixed payments), variable payments that depend on an index or rate, and the exercise price of a lessee option to purchase the underlying asset if the lessee is reasonably certain to exercise.

The components of lease expense were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Operating lease cost$6.1 $4.8 $11.7 $10.7 
Finance lease - amortization of right-of-use (ROU) assets0.3 — 0.3 — 
Short-term lease cost0.6 1.2 1.1 2.5 
Variable lease cost1.9 1.3 3.8 3.0 
Total lease cost$8.9 $7.3 $16.9 $16.2 

The following table summarizes the finance lease amounts in the Consolidated Balance Sheets:

Finance Leases
($ in millions)Balance Sheet ClassificationJune 30, 2024
ROU assets, netOther noncurrent assets$31.0 
Lease liabilities (current)Other current liabilities$0.9 
Lease liabilities (noncurrent)Other long-term liabilities$2.4 




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Supplemental cash flow information related to leases were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$15.0 $5.0 $20.3 $9.9 
Financing cash flows from finance leases$22.9 $— $22.9 $— 
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases$29.9 $2.9 $34.1 $3.5 
Finance Leases$24.3 $— $24.3 $— 

As of June 30, 2024 and December 31, 2023, the weighted average remaining lease term for operating leases was 8.6 years and 9.8 years, respectively. As of June 30, 2024, the weighted average remaining lease term for finance leases was 7.6 years. As of December 31, 2023, finance leases were not material.

As of June 30, 2024 and December 31, 2023, the weighted average discount rate for operating leases was 3.96% and 3.55%, respectively. As of June 30, 2024, the weighted average discount rate for finance leases was 4.94%. As of December 31, 2023, finance leases were not material.

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Maturities of operating lease liabilities were as follows:
($ in millions)June 30,December 31,
Year20242023
2024 (remaining period as of)$12.1 $20.9 
202522.7 18.7 
202619.8 15.7 
202715.3 11.2 
202813.8 9.5 
Thereafter36.2 42.1 
119.9 118.1 
Less: imputed lease interest(15.0)(15.9)
Total lease liabilities$104.9 $102.2 

Maturities of finance lease liabilities were as follows:
($ in millions)June 30,
Year2024
2024 (remaining period as of)$0.4 
20250.9 
20260.9 
20270.8 
20280.5 
Thereafter0.1 
3.6 
Less: imputed lease interest(0.3)
Total lease liabilities$3.3 

As of December 31, 2023, finance leases were not material.

Note 7:  Affiliated Companies

At June 30, 2024 and December 31, 2023, the aggregate carrying amount of our investment in affiliated companies that are accounted for under the equity method was $191.0 million and $203.2 million, respectively, and the aggregate carrying amount of our investment in affiliated companies that are not accounted for under the equity method was $7.2 million and $6.8 million, respectively. We have elected to record these investments, for which fair value was not readily determinable, at cost, less impairment, adjusted for subsequent observable price changes. We test these investments for impairment whenever circumstances indicate that the carrying value of the investments may not be recoverable.

Our purchases from, and royalty payments made to, affiliates totaled $24.9 million and $53.5 million, respectively, for the three and six months ended June 30, 2024, as compared to $39.9 million and $84.1 million, respectively, for the same period in 2023. As of June 30, 2024 and December 31, 2023, the payable balance due to affiliates was $20.4 million and $25.9 million, respectively. The majority of these transactions related to a distributorship agreement with Daikyo Seiko, Ltd. ("Daikyo") that allows us to purchase and re-sell Daikyo products.

Sales to affiliates were $4.0 million and $7.2 million, respectively, for the three and six months ended June 30, 2024, as compared to $2.7 million and $6.0 million, respectively, for the same periods in 2023. As of June 30, 2024 and December 31, 2023, the receivable balance due from affiliates was $2.4 million and $1.6 million, respectively.
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Note 8:  Debt

The following table summarizes our long-term debt obligations, net of unamortized debt issuance costs and current maturities. The interest rates shown in parentheses are as of June 30, 2024.
($ in millions)June 30,
2024		December 31,
2023
Term Loan, due December 31, 2024 (8.50%)
$79.9 $81.0 
Series B notes, due July 5, 2024 (3.82%)
53.0 53.0 
Series C notes, due July 5, 2027 (4.02%)
73.0 73.0 
205.9 207.0 
Less: unamortized debt issuance costs0.1 0.2 
Total debt205.8 206.8 
Less: current portion of long-term debt132.9 134.0 
Long-term debt, net$72.9 $72.8 

Credit Facility

At June 30, 2024, the borrowing capacity available under our $500.0 million multi-currency revolving credit facility (the “Credit Facility”), including outstanding letters of credit of $2.4 million, was $497.6 million.

Term Loan

At June 30, 2024, we had $79.9 million in borrowings under the Term Loan, of which $79.9 million was classified as current. Please refer to Note 9, Derivative Financial Instruments, for a discussion of the foreign currency hedge associated with the Term Loan.

Pursuant to the financial covenants in our debt agreements, we are required to maintain established interest coverage ratios and to not exceed established leverage ratios. In addition, the agreements contain other customary covenants, none of which we consider restrictive to our operations. At June 30, 2024, we were in compliance with all of our debt covenants.

Note 9:  Derivative Financial Instruments

Our ongoing business operations expose us to various risks, such as fluctuating interest rates, foreign currency exchange rates and increasing commodity prices. To manage these market risks, we periodically enter into derivative financial instruments, such as interest rate swaps, options and foreign exchange contracts for periods consistent with, and for notional amounts equal to or less than, the related underlying exposures. We do not purchase or hold any derivative financial instruments for investment or trading purposes. All derivatives are recorded in our condensed consolidated balance sheet at fair value.

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Foreign Exchange Rate Risk

We have entered into forward exchange contracts, designated as fair value hedges, to manage our exposure to fluctuating foreign exchange rates on cross-currency intercompany loans. As of both June 30, 2024 and December 31, 2023, the total amount of these forward exchange contracts was Singapore Dollar (“SGD”) 601.5 million and $13.4 million. We have also entered into forward exchange contracts, designated as fair value hedges, to manage our exposure to fluctuating foreign exchange rates on cross-currency intercompany demand notes which were executed at various times throughout 2023 and 2024. As of June 30, 2024, the total amount of these forward exchange contracts was Euro ("EUR") 290.2 million, SGD 98.1 million, $178.3 million, and EUR 23.5 million. As of December 31, 2023, the total amount of these forward exchange contracts was EUR 278.6 million and SGD 94.0 million.

In addition, we have entered into several foreign currency contracts, designated as cash flow hedges, for periods of up to eighteen months, intended to hedge the currency risk associated with a portion of our forecasted transactions denominated in foreign currencies. As of June 30, 2024, we had outstanding foreign currency contracts to purchase and sell certain pairs of currencies, as follows:

(in millions)Sell
CurrencyPurchaseUSDEURSGD
EUR30.5 33.4 — — 
Yen5,750.0 27.6 11.2 1.4 
SGD41.1 14.9 14.6 — 

In December 2019, we entered into a cross-currency swap for $90 million, which we designated as a hedge of our net investment in Daikyo. As of June 30, 2024, the notional amount of the cross-currency swap is ¥8.7 billion ($79.9 million) and the swap termination date is December 31, 2024. Under the cross-currency swap, we receive floating interest rate payments based on USD compounded Secured Overnight Financing Rate ("SOFR") plus a margin, in return for paying floating interest rate payments based on Japanese Yen (“Yen”) Tokyo Overnight Average Rate ("TONAR") plus a margin.

Additionally, we will periodically enter into forward exchange contracts to mitigate our exposure to fluctuating foreign exchange rates on assets and liabilities, other than the intercompany loans and demand notes referenced above, which are denominated in foreign currencies. The Company has elected not to designate these forward contracts in hedging relationships, and any change in the value of the contracts is recognized in income.

Commodity Price Risk

Many of our proprietary products are made from synthetic elastomers, which are derived from the petroleum refining process. We purchase the majority of our elastomers via long-term supply contracts, some of which contain clauses that provide for surcharges related to fluctuations in crude oil prices. The following economic hedges did not qualify for hedge accounting treatment since they did not meet the highly effective requirement at inception.

From November 2017 through June 2024, we purchased several series of call options for a total of 1,079,145 barrels of crude oil to mitigate our exposure to such oil-based surcharges and protect operating cash flows with regard to a portion of our forecasted elastomer purchases.

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As of June 30, 2024, we had outstanding contracts to purchase 201,801 barrels of crude oil from June 2024 to December 2025, at a weighted-average strike price of $86.26 per barrel.

Effects of Derivative Instruments on Financial Position and Results of Operations

Please refer to Note 10, Fair Value Measurements, for the balance sheet location and fair values of our derivative instruments as of June 30, 2024 and December 31, 2023.

The following table summarizes the effects of derivative instruments designated as fair value hedges on the condensed consolidated statements of income:
Amount of Gain (Loss) Recognized in Income for theAmount of Gain (Loss) Recognized in Income for the
Three Months Ended
June 30,		Six Months Ended
June 30,		Location on Statement of Income
($ in millions)2024202320242023
Fair Value Hedges:
Hedged item (intercompany loan)
$2.9 $7.4 $10.4 $9.9 Other expense (income)
Derivative designated as hedging instrument
(2.9)(8.2)(10.4)(10.7)Other expense (income)
Amount excluded from effectiveness testing
(1.7)(0.1)(3.5)1.1 Other expense (income)
Total$(1.7)$(0.9)$(3.5)$0.3 

We recognize in earnings the initial value of forward point components for hedges of intercompany loans on a straight-line basis over the life of the fair value hedge. The value of forward point components for hedges of intercompany demand notes is recognized currently in earnings using a market approach. The expense recognized in earnings, pre-tax, for forward point components for the three and six months ended June 30, 2024 was $1.7 million and $3.5 million, respectively. The income recognized in earnings, pre-tax, for forward point components for the three and six months ended June 30, 2023 was $0.2 million and $1.4 million, respectively.

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The following tables summarize the effects of derivative instruments designated as fair value, cash flow, and net investment hedges on other comprehensive income (“OCI”) and earnings, net of tax:
 Amount of Gain (Loss) Recognized in OCI for theAmount of (Gain) Loss Reclassified from Accumulated OCI into Income for theLocation of (Gain) Loss Reclassified from Accumulated OCI into Income
Three Months Ended
June 30,		Three Months Ended
June 30,
($ in millions)2024202320242023 
Fair Value Hedges
Foreign currency hedge contracts$0.5 $(2.2)$(0.7)$1.9 Other expense (income)
Total$0.5 $(2.2)$(0.7)$1.9 
Cash Flow Hedges:     
Foreign currency hedge contracts$— $(0.8)$(0.1)$0.4 Net sales
Foreign currency hedge contracts(3.7)(2.6)1.4 0.4 Cost of goods and services sold
Forward treasury locks— — — 0.1 Interest expense
Total$(3.7)$(3.4)$1.3 $0.9  
Net Investment Hedges:     
Cross-currency swap$3.8 $5.5 $— $— Other expense (income)
Total$3.8 $5.5 $— $—  
 Amount of Gain (Loss) Recognized in OCI for theAmount of (Gain) Loss Reclassified from Accumulated OCI into Income for theLocation of (Gain) Loss Reclassified from Accumulated OCI into Income
Six Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023 
Fair Value Hedges
Foreign currency hedge contracts$0.2 $(2.0)$(0.7)$1.9 Other expense (income)
Total$0.2 $(2.0)$(0.7)$1.9 
Cash Flow Hedges:     
Foreign currency hedge contracts$0.1 $(0.9)$(0.2)$1.1 Net sales
Foreign currency hedge contracts(6.6)(3.6)2.6 0.4 Cost of goods and services sold
Forward treasury locks— — 0.1 0.1 Interest expense
Total$(6.5)$(4.5)$2.5 $1.6  
Net Investment Hedges:     
Cross-currency swap$8.4 $7.2 $— $— Other expense (income)
Total$8.4 $7.2 $— $—  
16

Refer to the above table which summarizes the effects of derivative instruments designated as fair value hedges within the other expense (income) line in our condensed consolidated statements of income for the three and six months ended June 30, 2024 and June 30, 2023. The following table summarizes the effects of derivative instruments designated as cash flow and net investment hedges by line item in our condensed consolidated statements of income:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Net sales$(0.1)$0.4 $(0.2)$1.1 
Cost of goods and services sold1.4 0.4 2.6 0.4 
Interest expense— 0.1 0.1 0.1 

The following table summarizes the effects of derivative instruments not designated as hedges on the condensed consolidated statements of income:
Amount of Gain (Loss) Recognized in Income for theAmount of Gain (Loss) Recognized in Income for the
Three Months Ended
June 30,		Six Months Ended
June 30,		Location on Statement of Income
($ in millions)2024202320242023
Commodity call options$(0.2)$(0.4)$(0.1)$(1.0)Other expense (income)
Currency forwards0.1 (0.2)0.5 (0.2)Other expense (income)
Total$(0.1)$(0.6)$0.4 $(1.2)

For the three and six months ended June 30, 2024 and 2023, there was no material ineffectiveness related to our hedges.

Note 10:  Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The following fair value hierarchy classifies the inputs to valuation techniques used to measure fair value into one of three levels:

•Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.
•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
•Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

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The following tables present the assets and liabilities recorded at fair value on a recurring basis:
 Balance atBasis of Fair Value Measurements
($ in millions)June 30,
2024		Level 1Level 2Level 3
Assets:    
Deferred compensation assets$10.4 $10.4 $— $— 
Foreign currency contracts7.4 — 7.4 — 
Cross-currency swap25.7 — 25.7 — 
Commodity call options0.7 — 0.7 
 $44.2 $10.4 $33.8 $— 
Liabilities:    
Contingent consideration$3.8 $— $— $3.8 
Deferred compensation liabilities10.6 10.6 — — 
Foreign currency contracts14.7 — 14.7 — 
 $29.1 $10.6 $14.7 $3.8 

 Balance atBasis of Fair Value Measurements
($ in millions)December 31,
2023		Level 1Level 2Level 3
Assets:    
Deferred compensation assets$10.2 $10.2 $— $— 
Foreign currency contracts5.0 — 5.0 — 
Cross-currency swap18.4 — 18.4 — 
Commodity call options0.6 — 0.6 — 
 $34.2 $10.2 $24.0 $— 
Liabilities:    
Contingent consideration$3.6 $— $— $3.6 
Deferred compensation liabilities10.4 10.4 — — 
Foreign currency contracts2.2 — 2.2 — 
 $16.2 $10.4 $2.2 $3.6 

Deferred compensation assets are included within other noncurrent assets and are valued using a market approach based on quoted market prices in an active market. The fair value of our foreign currency contracts, included within other current and other noncurrent assets, as well as other current and other long-term liabilities as of June 30, 2024, is valued using an income approach based on quoted forward foreign exchange rates and spot rates at the reporting date. The fair value of the cross-currency swap, included within other current assets, is valued using a market approach. Please refer to Note 9, Derivative Financial Instruments, for further discussion of our derivatives. The fair value of our commodity call options, included within other current and other noncurrent assets, is valued using a market approach. The fair value of the contingent consideration liability, within current and long-term liabilities, related to the SmartDose® technology platform (the “SmartDose® contingent consideration”) was initially determined using a probability-weighted income approach, and is revalued at each reporting date or more frequently if circumstances dictate. Changes in the fair value of this obligation are recorded as income or expense within other expense (income) in our condensed consolidated statements of income. The fair value of deferred compensation liabilities is based on quoted prices of the underlying employees’ investment selections and is included within other long-term liabilities.

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Other Financial Instruments

We believe that the carrying amounts of our cash and cash equivalents and accounts receivable approximate their fair values due to their near-term maturities.

The estimated fair value of short-term and long-term debt is based on quoted market prices for debt issuances with similar terms and maturities and is classified as Level 2 within the fair value hierarchy. At June 30, 2024, the estimated fair value of short-term and long-term debt was $203.0 million compared to a carrying amount of $205.8 million. At December 31, 2023, the estimated fair value of short-term and long-term debt was $204.4 million and the carrying amount was $206.8 million.

Note 11:  Accumulated Other Comprehensive Loss

The following table presents the changes in the components of accumulated other comprehensive income ("AOCI") (loss), net of tax, for the six months ended June 30, 2024:
($ in millions)DerivativesChange in equity affiliate investment AOCIDefined benefit
pension and other
postretirement plans		Foreign
currency
translation		Total
Balance, December 31, 2023$— $2.3 $(10.1)$(136.0)$(143.8)
Other comprehensive (loss) income before reclassifications(6.3)(0.2)— (68.0)(74.5)
Amounts reclassified out from accumulated other comprehensive (loss) income1.8 — (0.4)— 1.4 
Other comprehensive (loss) income, net of tax(4.5)(0.2)(0.4)(68.0)(73.1)
Balance, June 30, 2024$(4.5)$2.1 $(10.5)$(204.0)$(216.9)

The following table presents the changes in the components of accumulated other comprehensive income ("AOCI") (loss), net of tax, for the six months ended June 30, 2023:
($ in millions)DerivativesChange in equity affiliate investment AOCIDefined benefit
pension and other
postretirement plans		Foreign
currency
translation		Total
Balance, December 31, 2022$0.2 $1.6 $(9.4)$(175.4)$(183.0)
Other comprehensive (loss) income before reclassifications(6.5)(0.1)(0.5)4.0 (3.1)
Amounts reclassified out from accumulated other comprehensive (loss) income3.5 — (0.9)— 2.6 
Other comprehensive (loss) income, net of tax(3.0)(0.1)(1.4)4.0 (0.5)
Balance, June 30, 2023$(2.8)$1.5 $(10.8)$(171.4)$(183.5)

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A summary of the reclassifications out from accumulated other comprehensive loss is presented in the following table:
($ in millions)Three Months Ended
June 30,		Six Months Ended
June 30,		Location on Statement of Income
Detail of components2024202320242023
(Losses) gains on derivatives:
Foreign currency contracts$0.1 $(0.6)$0.2 $(1.3)Net sales
Foreign currency contracts(1.8)(0.6)(3.4)(0.6)Cost of goods and services sold
Foreign currency contracts1.0 (2.8)1.0 (2.8)Other expense (income)
Forward treasury locks— — (0.1)(0.1)Interest expense
Total before tax(0.7)(4.0)(2.3)(4.8)
Tax benefit0.1 1.2 0.5 1.3 
Net of tax$(0.6)$(2.8)$(1.8)$(3.5)
Amortization of defined benefit pension and other postretirement plans:
Actuarial gains$0.2 $0.4 $0.5 $0.8 (a)
Other— 0.4 — 0.4 
Total before tax0.2 0.8 0.5 1.2 
Tax expense— (0.2)(0.1)(0.3)
Net of tax$0.2 $0.6 $0.4 $0.9 
Total reclassifications for the period, net of tax$(0.4)$(2.2)$(1.4)$(2.6)

(a) This component is included in the computation of net periodic benefit cost.
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Note 12: Shareholders’ Equity

The following table presents the changes in shareholders’ equity for the six months ended June 30, 2024:
Common Shares IssuedCommon StockCapital in Excess of Par ValueNumber of Treasury SharesTreasury StockRetained EarningsAccumulated Other Comprehensive LossTotal
(in millions)
Balance, December 31, 202375.3 $18.8 $120.2 1.8 $(637.6)$3,523.4 $(143.8)$2,881.0 
Net income— — — — — 115.3 — 115.3 
Activity related to stock-based compensation— — (65.0)(0.2)79.4 — — 14.4 
Shares purchased under share repurchase program— — — 0.7 (267.0)— — (267.0)
Dividends declared ($0.20 per share)
— — — — — (14.6)— (14.6)
Other comprehensive loss, net of tax— — — — — — (48.5)(48.5)
Balance, March 31, 202475.3 $18.8 $55.2 2.3 $(825.2)$3,624.1 $(192.3)$2,680.6 
Net income— — — — — 111.3 — 111.3 
Activity related to stock-based compensation— — (21.7)(0.1)32.8 — — 11.1 
Shares purchased under share repurchase program— — — 0.5 (187.1)— — (187.1)
Dividends declared ($0.20 per share)
— — — — — (14.5)— (14.5)
Other comprehensive loss, net of tax— — — — — — (24.6)(24.6)
Balance, June 30, 202475.3 $18.8 $33.5 2.7 $(979.5)$3,720.9 $(216.9)$2,576.8 

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The following table presents the changes in shareholders’ equity for the six months ended June 30, 2023:
Common Shares IssuedCommon StockCapital in Excess of Par ValueNumber of Treasury SharesTreasury StockRetained EarningsAccumulated Other Comprehensive LossTotal
(in millions)
Balance, December 31, 202275.3 $18.8 $232.2 1.2 $(370.9)$2,987.8 $(183.0)$2,684.9 
Net income— — — — — 140.0 — 140.0 
Activity related to stock-based compensation— — (50.8)(0.3)61.8 — — 11.0 
Shares purchased under share repurchase program— — — 0.2 (60.1)— — (60.1)
Dividends declared ($0.19 per share)
— — — — — (14.2)— (14.2)
Other comprehensive income, net of tax— — — — — — 14.6 14.6 
Balance, March 31, 202375.3 $18.8 $181.4 1.1 $(369.2)$3,113.6 $(168.4)$2,776.2 
Net income— — — — — 155.1 — 155.1 
Activity related to stock-based compensation— — (23.2)(0.2)41.2— — 18.0 
Shares purchased under share repurchase program— — — 0.5 (173.4)— — (173.4)
Dividends declared ($0.19 per share)
— — — — — (14.1)— (14.1)
Other comprehensive loss, net of tax— — — — — — (15.1)(15.1)
Balance, June 30, 202375.3 $18.8 $158.2 1.4 $(501.4)$3,254.6 $(183.5)$2,746.7 

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Note 13:  Stock-Based Compensation

The West Pharmaceutical Services, Inc. 2016 Omnibus Incentive Compensation Plan (the “2016 Plan”) provides for the granting of stock options, stock appreciation rights, restricted stock awards and performance awards to employees and non-employee directors. A committee of the Board of Directors determines the terms and conditions of awards to be granted. Vesting requirements vary by award. At June 30, 2024, there were 1,339,458 shares remaining in the 2016 Plan for future grants.

During the six months ended June 30, 2024, we granted 85,263 stock options at a weighted average exercise price of $350.28 per share based on the grant-date fair value of our stock to employees under the 2016 Plan. The weighted average grant date fair value of options granted was $134.93 per share as determined by the Black-Scholes option valuation model using the following weighted average assumptions: a risk-free interest rate of 4.3%; expected life of 6.0 years based on prior experience; stock volatility of 32.0% based on historical data; and a dividend yield of 0.3%. Stock option expense is recognized over the vesting period, net of forfeitures.

During the six months ended June 30, 2024, we granted 32,876 stock-settled performance share unit (“PSU”) awards at a weighted average grant-date fair value of $350.28 per share to eligible employees. These awards are earned based on the Company’s performance against pre-established targets, including annual growth rate of revenue and return on invested capital, over a specified performance period. Depending on the achievement of the targets, recipients of stock-settled PSU awards are entitled to receive a certain number of shares of common stock. Shares earned under PSU awards may vary from 0% to 200% of an employee’s targeted award. The fair value of stock-settled PSU awards is based on the market price of our stock at the grant date and is recognized as expense over the performance period, adjusted for estimated target outcomes and net of forfeitures.

During the six months ended June 30, 2024, we granted 7,019 stock-settled restricted share unit (“RSU”) awards at a weighted average grant-date fair value of $350.65 per share to eligible employees. These awards are earned over a specified performance period. The fair value of stock-settled RSU awards is based on the market price of our stock at the grant date and is recognized as expense over the vesting period, net of forfeitures.

Stock-based compensation expense was $4.3 million and $9.3 million for the three and six months ended June 30, 2024, respectively. For the three and six months ended June 30, 2023, stock-based compensation expense was $7.5 million and $16.0 million, respectively.

Note 14:  Other Expense (Income)

Other expense (income) consists of:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Loss on disposal of plant$— $2.2 $— $11.6 
Foreign exchange transaction losses2.0 0.3 3.2 1.2 
Contingent consideration1.0 0.5 2.0 0.8 
Asset impairments0.3 1.5 0.9 3.4 
Restructuring and related charges— (0.8)— (0.8)
Other items— 0.3 0.3 0.7 
Total other expense (income)$3.3 $4.0 $6.4 $16.9 

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Loss on Disposal of Plant

During the three and six months ended June 30, 2023, the Company recorded expense of $2.2 million and $11.6 million, respectively, within other expense (income), as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment. The transaction closed during the second quarter of 2023.

Contingent Consideration

Contingent consideration represents changes in the fair value of the SmartDose® contingent consideration. Please refer to Note 10, Fair Value Measurements, for additional details.

Restructuring and Related Charges

In December 2022, the Company approved a restructuring plan to adjust our operating cost base to better respond to the macroeconomic factors influencing our business. These changes are expected to be implemented over a period of up to twenty-four months from the date of approval. The plan is expected to require restructuring and related charges of approximately $22 million to $24 million, with annualized savings in the range of $22 million to $24 million.

The following table presents activity related to our restructuring obligations related to our 2022 restructuring plan:

($ in millions)Severance
and benefits		Other chargesTotal
Balance, December 31, 2023$3.0 $— $3.0 
(Credits) Charges— — — 
Cash payments(0.3)— (0.3)
Balance, June 30, 2024$2.7 $— $2.7 


Note 15:  Income Taxes

The tax provision for interim periods is determined using the estimated annual effective consolidated tax rate, based on the current estimate of full-year earnings before taxes, adjusted for the impact of discrete quarterly items.

The provision for income taxes was $21.9 million and $34.8 million for the three months ended June 30, 2024 and 2023, respectively, and the effective tax rate was 17.0% and 18.8%, respectively. The decrease in the effective tax rate is primarily due to a shift in the forecasted geographic earnings mix, offset by a decrease in the tax benefit related to stock-based compensation for three months ended June 30, 2024 as compared to the same period in 2023.

The provision for income taxes was $38.3 million and $58.4 million for the six months ended June 30, 2024 and 2023, respectively, and the effective tax rate was 15.0% and 17.0%, respectively. The decrease in the effective tax rate is primarily due to a shift in the forecasted geographic earnings mix, offset by a decrease in the tax benefit related to stock-based compensation for six months ended June 30, 2024, as compared to the same period in 2023.

The Company continues to address the change in tax laws enacted pursuant to the Organization for Economic Cooperation and Development (OECD)’s 15% global minimum tax initiative (Pillar 2). The 2024 forecasted impact of Pillar 2 is not expected to be material to the Company.

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Note 16:  Commitments and Contingencies

From time to time, we are involved in product liability matters and other legal proceedings and claims generally incidental to our normal business activities. We accrue for loss contingencies when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. While the outcome of current proceedings cannot be accurately predicted, we believe their ultimate resolution should not have a material adverse effect on our business, financial condition, results of operations or liquidity.

There have been no significant changes to commitments and contingencies since December 31, 2023.

Note 17:  Segment Information

Our business operations are organized into two reportable segments, Proprietary Products and Contract-Manufactured Products. Our Proprietary Products reportable segment offers proprietary packaging, containment solutions and drug delivery products, along with analytical lab services and other integrated services and solutions, primarily to biologic, generic and pharmaceutical drug customers. Our Contract-Manufactured Products reportable segment serves as a fully integrated business, focused on the design, manufacture, and automated assembly of complex devices, primarily for pharmaceutical, diagnostic, and medical device customers.

The Chief Operating Decision Maker ("CODM") evaluates the performance of our segments based upon, among other things, segment net sales and operating profit. Segment operating profit excludes general corporate costs, which include executive and director compensation, stock-based compensation, certain pension and other retirement benefit costs, and other corporate facilities and administrative expenses not allocated to the segments. Also excluded are items that the CODM considers not representative of ongoing operations. Such items are referred to as other unallocated items and generally include restructuring and related charges, certain asset impairments and other specifically-identified income or expense items. The segment operating profit metric is what the CODM uses in evaluating our results of operations and the financial measure that provides a valuable insight into our overall performance and financial position.

The following table presents information about our reportable segments, reconciled to consolidated totals:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Net sales:    
Proprietary Products$559.7 $618.0 $1,119.2 $1,201.1 
Contract-Manufactured Products142.4 135.8 278.3 269.3 
Consolidated net sales$702.1 $753.8 $1,397.5 $1,470.4 















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The following table provides summarized financial information for our segments:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Operating profit (loss):
Proprietary Products$131.0 $194.2 $257.3 $364.9 
Contract-Manufactured Products17.2 14.9 34.3 32.3 
Total business segment operating profit$148.2 $209.1 $291.6 $397.2 
Corporate and Unallocated
Stock-based compensation expense$(4.3)$(7.5)$(9.3)$(16.0)
Corporate general costs (1)
(17.5)(16.6)(32.9)(31.3)
Unallocated Items:
Amortization of acquisition-related intangible assets (2)
(0.2)(0.2)(0.4)(0.4)
Loss on disposal of plant (3)
— (2.2)— (11.6)
Restructuring and other charges (4)
— (0.1)— (0.1)
Total Corporate and Unallocated(22.0)(26.6)(42.6)(59.4)
Total consolidated operating profit$126.2 $182.5 $249.0 $337.8 
Interest (income) expense, net and other nonoperating (income) expense, net(2.5)(2.4)(7.1)(5.0)
Income before income taxes and equity in net income of affiliated companies$128.7 $184.9 $256.1 $342.8 

(1) Corporate general costs includes executive and director compensation, certain pension and other retirement benefit costs, and other corporate facilities and administrative expenses not allocated to the segments.

(2) During the three and six months ended June 30, 2024, the Company recorded $0.2 million and $0.4 million, respectively, of amortization expense within operating profit associated with an intangible asset acquired during the second quarter of 2020. During the three and six months ended June 30, 2023, the Company recorded $0.2 million and $0.4 million, respectively, of amortization expense within operating profit associated with an intangible asset acquired during the second quarter of 2020.

(3) During the three and six months ended June 30, 2023, the Company recorded expense of $2.2 million and $11.6 million, respectively, within other expense (income), as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment. The transaction closed during the second quarter of 2023.

(4) Restructuring and other charges of $0.1 million for both the three and six months ended June 30, 2023 represents the net impact of an inventory write down of $0.9 million within cost of goods and services sold and a $0.8 million benefit within other expense (income) for revised severance estimates in connection with its 2022 restructuring plan.

Please refer to Note 14, Other Expense (Income), for further discussion of certain unallocated items referenced above.

26
Note 18:  Subsequent Events

On July 2, 2024, the Company entered into the Third Amendment to the Credit Facility Agreement, which amended the Existing Credit Facility Agreement. Among other changes to the existing credit agreement, the Third Amendment established an incremental term loan in the stated principal amount of $130.0 million (the “New Term Loan”), which was fully drawn at closing and matures on July 2, 2027. The entire stated principal amount of the New Term Loan is due at maturity and there is no scheduled amortization prior to such date. Together with cash on hand, proceeds from the New Term Loan were used to repay an outstanding term loan under the Existing Credit Facility Agreement in the principal amount of $79.9 million and to repay an aggregate principal amount of $53.0 million of the Company’s 3.82% Series B Senior Notes due July 5, 2024 issued under that certain Note Purchase Agreement dated as of July 5, 2012.

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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

The following discussion is intended to further the reader’s understanding of the consolidated financial condition and results of operations of our Company. It should be read in conjunction with our condensed consolidated financial statements and accompanying notes elsewhere in this Quarterly Report on Form 10-Q (“Form 10-Q”) as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and accompanying notes included in our 2023 Annual Report. Our historical financial statements may not be indicative of our future performance. This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains a number of forward-looking statements, all of which are based on our current expectations and could be affected by the uncertainties and risks discussed in Part I, Item 1A of our 2023 Annual Report and in Part II, Item 1A of this Form 10-Q.

Throughout this section, references to “Notes” refer to the notes to our condensed consolidated financial statements (unaudited) in Part I, Item 1 of this Form 10-Q, unless otherwise indicated.

Non-U.S. GAAP Financial Measures

For the purpose of aiding the comparison of our year-over-year results, we may refer to net sales and other financial results excluding the effects of changes in foreign currency exchange rates. Organic net sales exclude the impact from acquisitions and/or divestitures and translate the current-period reported sales of subsidiaries whose functional currency is other than USD at the applicable foreign exchange rates in effect during the comparable prior-year period. We may also refer to adjusted consolidated operating profit and adjusted consolidated operating profit margin, which exclude the effects of unallocated items. The unallocated items are not representative of ongoing operations, and generally include restructuring and related charges, certain asset impairments, and other specifically-identified income or expense items. The re-measured results excluding effects from currency translation, the impact from acquisitions and/or divestitures, and excluding the effects of unallocated items are not in conformity with U.S. Generally Accepted Accounting Principles ("GAAP") and should not be used as a substitute for the comparable U.S. GAAP financial measures. The non-U.S. GAAP financial measures are incorporated in our discussion and analysis as management uses them in evaluating our results of operations and believes that this information provides users with a valuable insight into our overall performance and financial position.

Our Operations

We are a leading global manufacturer in the design and production of technologically advanced, high-quality, integrated containment and delivery systems for injectable drugs and healthcare products. Our products include a variety of primary proprietary packaging, containment solutions, reconstitution and transfer systems, and drug delivery systems, as well as contract manufacturing, analytical lab services and integrated solutions. Our customers include leading biologic, generic, pharmaceutical, diagnostic, and medical device companies around the world. Our top priority is delivering quality products that meet the exact product specifications and quality standards customers require and expect. This focus on quality includes a commitment to excellence in manufacturing, scientific and technical expertise and management, which enables us to partner with our customers in order to deliver safe, effective drug products to patients quickly and efficiently.

Our business operations are organized into two global segments, Proprietary Products and Contract-Manufactured Products. Our Proprietary Products reportable segment offers proprietary packaging, containment solutions and drug delivery systems, along with analytical lab services and other integrated services and solutions, primarily to biologic, generic and pharmaceutical drug customers. Our Contract-Manufactured Products reportable segment serves as a fully integrated business, focused on the design, manufacture, and automated assembly of complex devices, primarily for pharmaceutical, diagnostic, and medical device customers. We also maintain collaborations to share technologies and market products with affiliates in Japan and Mexico.
28

Macroeconomic Factors

We have operations based in Israel that conduct research and development activities and manufacture certain components for our devices. Our Israel-based facilities continue to substantially operate as they had prior to the conflict in Israel and surrounding area. We continue to monitor the impact of the conflict in Israel and surrounding areas on our operations and those of our suppliers, the possible expansion of such conflict and potential geopolitical consequences, if any, on our business and operations.

Financial Performance Summary

The following tables present a reconciliation from U.S. GAAP to non-U.S. GAAP financial measures for the three and six months ended June 30, 2024:

($ in millions, except per share data)Operating profitIncome tax expenseNet incomeDiluted EPS
Three months ended June 30, 2024 GAAP
$126.2 $21.9 $111.3 $1.51 
Unallocated items:
Amortization of acquisition-related intangible assets (1)
0.2 — 0.7 0.01 
Three months ended June 30, 2024 adjusted amounts (non-U.S. GAAP)
$126.4 $21.9 $112.0 $1.52 

($ in millions, except per share data)Operating profitIncome tax expenseNet incomeDiluted EPS
Six months ended June 30, 2024 GAAP
$249.0 $38.3 $226.6 $3.06 
Unallocated items:
Amortization of acquisition-related intangible assets (1)
0.4 — 1.4 0.02 
Six months ended June 30, 2024 adjusted amounts (non-U.S. GAAP)
$249.4 $38.3 $228.0 $3.08 

During the three and six months ended June 30, 2024, we recorded a tax benefit of $5.7 million and $16.6 million, respectively, associated with stock-based compensation.

The following tables present a reconciliation from U.S. GAAP to non-U.S. GAAP financial measures for the three and six months ended June 30, 2023:

($ in millions, except per share data)Operating profitIncome tax expenseNet incomeDiluted EPS
Three months ended June 30, 2023 GAAP
$182.5 $34.8 $155.1 $2.06 
Unallocated items:
Amortization of acquisition-related intangible assets (1)
0.2 — 0.7 0.01 
Loss on disposal of plant (2)
2.2 (0.7)2.9 0.04 
Restructuring and other charges (3)
0.1 (0.3)0.4 — 
Three months ended June 30, 2023 adjusted amounts (non-U.S. GAAP)
$185.0 $33.8 $159.1 $2.11 

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($ in millions, except per share data)Operating profitIncome tax expenseNet incomeDiluted EPS
Six months ended June 30, 2023 GAAP
$337.8 $58.4 $295.1 $3.91 
Unallocated items:
Amortization of acquisition-related intangible assets (1)
0.4 — 1.4 0.02 
Loss on disposal of plant (2)
11.6 (0.7)12.3 0.16 
Restructuring and other charges (3)
0.1 (0.3)0.4 — 
Six months ended June 30, 2023 adjusted amounts (non-U.S. GAAP)
$349.9 $57.4 $309.2 $4.09 

During the three and six months ended June 30, 2023, we recorded a tax benefit of $7.7 million and $19.3 million, respectively, associated with stock-based compensation.

(1)During the three and six months ended June 30, 2024 and 2023, the Company recorded $0.2 million and $0.4 million, respectively, of amortization expense within operating profit associated with an intangible asset acquired during the second quarter of 2020. During the three and six months ended June 30, 2024 and 2023, the Company recorded $0.5 million and $1.0 million, respectively, of amortization expense in association with an acquisition of increased ownership interest in Daikyo.

(2)During the three and six months ended June 30, 2023, the Company recorded expense of $2.2 million and $11.6 million, respectively, within other expense (income), as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment. The transaction closed during the second quarter of 2023.

(3)Restructuring and other charges of $0.1 million for both the three and six months ended June 30, 2023 represents the net impact of an inventory write down of $0.9 million within cost of goods and services sold and a $0.8 million benefit within other expense (income) for revised severance estimates in connection with its 2022 restructuring plan.

RESULTS OF OPERATIONS

We evaluate the performance of our segments based upon, among other things, segment net sales and operating profit. Segment operating profit excludes general corporate costs, which include executive and director compensation, stock-based compensation, certain pension and other retirement benefit costs, and other corporate facilities and administrative expenses not allocated to the segments. Also excluded are items that we consider not representative of ongoing operations. Such items are referred to as other unallocated items for which further information can be found above in the reconciliation from U.S. GAAP to non-U.S. GAAP financial measures.

Percentages in the following tables and throughout the Results of Operations section may reflect rounding adjustments.

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Net Sales

The following table presents net sales, consolidated and by reportable segment, for the three months ended June 30, 2024 and 2023:
Three Months Ended
June 30,		Percentage Change
($ in millions)20242023As-ReportedOrganic
Proprietary Products$559.7 $618.0 (9.4)%(8.4)%
Contract-Manufactured Products142.4 135.8 4.9 %5.4 %
Consolidated net sales$702.1 $753.8 (6.9)%(5.9)%

Consolidated net sales decreased by $51.7 million, or 6.9%, for the three months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $6.1 million. Excluding foreign currency translation effects and removal of the 2023 sales impact related to one of our plants that was disposed of in the second quarter of 2023 of $1.1 million, consolidated net sales for the three months ended June 30, 2024 decreased by $44.5 million, or 5.9%, as compared to the same period in 2023.

Proprietary Products – Proprietary Products net sales decreased by $58.3 million, or 9.4%, for the three months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $5.4 million. Excluding foreign currency translation effects and removal of the 2023 sales impact related to one of our plants that was disposed of in the second quarter of 2023 of $1.1 million, net sales for the three months ended June 30, 2024 decreased by $51.8 million, or 8.4%, as compared to the same period in 2023, due to a decline in sales of certain high-value product offerings due to customer inventory management, primarily Westar® components, Daikyo Crystal Zenith® and FluroTec® products. These reductions were partially offset by an increase in sales of self-injection device platforms and Envision® products, as well as increased sales prices.

Contract-Manufactured Products – Contract-Manufactured Products net sales increased by $6.6 million, or 4.9%, for the three months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $0.7 million. Excluding foreign currency translation effects, net sales for the three months ended June 30, 2024 increased by $7.3 million, or 5.4%, as compared to the same period in 2023, primarily due to an increase in sales of components associated with injection-related devices and sales price increases.

The following table presents net sales, consolidated and by reportable segment, for the six months ended June 30, 2024 and 2023:
Six Months Ended
June 30,		Percentage Change
($ in millions)20242023As-ReportedOrganic
Proprietary Products$1,119.2 $1,201.1 (6.8)%(6.3)%
Contract-Manufactured Products278.3 269.3 3.3 %3.4 %
Consolidated net sales$1,397.5 $1,470.4 (5.0)%(4.5)%

Consolidated net sales decreased by $72.9 million, or 5.0%, for the six months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $2.7 million. Excluding foreign currency translation effects and removal of the 2023 sales impact related to one of our plants that was disposed of in the second quarter of 2023 of $4.3 million, consolidated net sales for the six months ended June 30, 2024 decreased by $65.9 million, or 4.5%, as compared to the same period in 2023.




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Proprietary Products – Proprietary Products net sales decreased by $81.9 million, or 6.8%, for the six months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $2.6 million. Excluding foreign currency translation effects and removal of the 2023 sales impact related to one of our plants that was disposed of in the second quarter of 2023 of $4.3 million, net sales for the six months ended June 30, 2024 decreased by $75.0 million, or 6.3%, as compared to the same period in 2023, due to a decline in sales of certain high-value product offerings due to customer inventory management, primarily Westar® components, FluroTec® products and Daikyo Crystal Zenith®. These reductions were partially offset by an increase in sales of NovaPure® products and self-injection device platforms, as well as increased sales prices.

Contract-Manufactured Products – Contract-Manufactured Products net sales increased by $9.0 million, or 3.3%, for the six months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $0.1 million. Excluding foreign currency translation effects, net sales for the six months ended June 30, 2024 increased by $9.1 million, or 3.4%, as compared to the same period in 2023, primarily due to an increase in sales of components associated with injection-related devices and sales price increases.

Gross Profit

The following table presents gross profit and related gross profit margins, consolidated and by reportable segment:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Proprietary Products:  
Gross profit$207.0 $271.4 $414.1 $519.2 
Gross profit margin37.0 %43.9 %37.0 %43.2 %
Contract-Manufactured Products:   
Gross profit$23.0 $20.9 $46.1 $44.4 
Gross profit margin16.2 %15.4 %16.6 %16.5 %
Unallocated items$— $(0.9)$— $(0.9)
Consolidated gross profit$230.0 $291.4 $460.2 $562.7 
Consolidated gross profit margin32.8 %38.7 %32.9 %38.3 %

Consolidated gross profit decreased by $61.4 million, or 21.1%, for the three months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $2.2 million. Consolidated gross profit margin decreased by 5.9 margin points for the three months ended June 30, 2024, as compared to the same period in 2023.

Consolidated gross profit decreased by $102.5 million, or 18.2% for the six months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $0.9 million. Consolidated gross profit margin decreased by 5.4 margin points for the six months ended June 30, 2024, as compared to the same period in 2023.

Proprietary Products - Proprietary Products gross profit decreased by $64.4 million, or 23.7%, for the three months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $2.1 million. Proprietary Products gross profit margin decreased by 6.9 margin points for the three months ended June 30, 2024, as compared to the same period in 2023, primarily due to lower plant absorption from reduced customer demand and an unfavorable mix of products sold. These headwinds were partially offset by increased sales prices.



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Proprietary Products gross profit decreased by $105.1 million, or 20.2%, for the six months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $0.9 million. Proprietary Products gross profit margin decreased by 6.2 margin points for the six months ended June 30, 2024, as compared to the same period in 2023, primarily due to lower plant absorption from reduced customer demand and an unfavorable mix of products sold. These headwinds were partially offset by increased sales prices.

Contract-Manufactured Products - Contract-Manufactured Products gross profit increased by $2.1 million, or 10.0%, for the three months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $0.1 million. Contract-Manufactured Products gross profit margin increased by 0.8 margin points for the three months ended June 30, 2024, as compared to the same period in 2023, primarily due to increased sales prices.

Contract-Manufactured Products gross profit increased by $1.7 million, or 3.8%, for the six months ended June 30, 2024, as compared to the same period in 2023. Contract-Manufactured Products gross profit margin increased by 0.1 margin points for the six months ended June 30, 2024, as compared to the same period in 2023, primarily due to increased sales prices.

Research and Development (“R&D”) Costs

The following table presents consolidated R&D costs:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Consolidated R&D costs$17.5 $16.5 $35.1 $33.6 

Consolidated R&D costs increased by $1.0 million, or 6.1%, and $1.5 million, or 4.5% for the three and six months ended June 30, 2024, respectively, as compared to the same period in 2023, due to additional research performed to identify new product opportunities. Efforts remain focused on the continued investment in elastomeric packaging components, formulation development, drug containment systems, self-injection systems and drug administration consumables.

All of the R&D costs incurred the three and six months ended June 30, 2024 and 2023 related to Proprietary Products.

Selling, General and Administrative (“SG&A”) Costs

The following table presents SG&A costs, consolidated and by reportable segment and corporate and unallocated items:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Proprietary Products$56.1 $58.9 $116.8 $115.4 
Contract-Manufactured Products6.2 6.1 12.4 12.1 
Corporate and unallocated items20.7 23.4 40.5 46.9 
Consolidated SG&A costs$83.0 $88.4 $169.7 $174.4 
SG&A as a % of net sales11.8 %11.7 %12.1 %11.9 %

Consolidated SG&A costs decreased by $5.4 million, or 6.1%, for the three months ended June 30, 2024, as compared to the same period in 2023, due primarily to a decrease in expense related to stock-based compensation, lower annual incentive compensation and a favorable foreign currency translation impact of $0.4 million, offset by increased compensation costs.
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Consolidated SG&A costs decreased by $4.7 million, or 2.7%, for the six months ended June 30, 2024, as compared to the same period in 2023, due primarily to a decrease in expense related to stock-based compensation and a favorable foreign currency translation impact of $0.3 million, offset by increased compensation costs and increased costs related to professional services.

Proprietary Products - Proprietary Products SG&A costs decreased by $2.8 million, or 4.8%, for the three months ended June 30, 2024, as compared to the same period in 2023. Proprietary Products SG&A costs decreased primarily due to lower annual incentive compensation and a favorable foreign currency translation impact of $0.4 million, offset by increased compensation costs.

Proprietary Products SG&A costs increased by $1.4 million, or 1.2%, for the six months ended June 30, 2024, as compared to the same period in 2023. Proprietary Products SG&A costs increased primarily due to increased compensation costs and an increase in costs related to professional services, offset by a favorable foreign currency translation impact of $0.3 million.

Contract-Manufactured Products - Contract-Manufactured Products SG&A costs increased by $0.1 million, or 1.6% for the three months ended June 30, 2024, as compared to the same period in 2023, and increased by $0.3 million, or 2.5% for the six months ended June 30, 2024, as compared to the same period in 2023.

Corporate and unallocated items - Corporate SG&A costs decreased by $2.7 million, or 11.5%, for the three months ended June 30, 2024, as compared to the same period in 2023, primarily due to a decrease in expense related to stock-based compensation and lower annual incentive compensation, offset by increased compensation costs.

Corporate SG&A costs decreased by $6.4 million, or 13.6%, for the six months ended June 30, 2024, as compared to the same period in 2023, primarily due to a decrease in expense related to stock-based compensation, offset by increased compensation costs.

Other Expense (Income)

The following table presents other expense and income items, consolidated and by reportable segment, corporate and unallocated items:
Expense (Income)Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Proprietary Products$2.4 $1.8 $4.9 $5.3 
Contract-Manufactured Products(0.4)(0.1)(0.6)— 
Corporate and unallocated1.3 2.3 2.1 11.6 
Consolidated other expense (income)$3.3 $4.0 $6.4 $16.9 

Other expense and income items consist of a loss on disposal of plant, asset impairments, foreign exchange transaction gains and losses, contingent consideration and miscellaneous income and charges.

Consolidated other expense (income) changed by $0.7 million for the three months ended June 30, 2024, as compared to the same period in 2023, and changed by $10.5 million for the six months ended June 30, 2024, as compared to the same period in 2023, due to the factors described below.

Proprietary Products - Proprietary Products other expense (income) changed by $0.6 million for the three months ended June 30, 2024, as compared to the same period in 2023, primarily due to increased losses on foreign exchange transactions being recorded in the three months ended June 30, 2024, as compared to the same period in 2023. This was offset by an increase in asset impairments recorded in the three months ended June 30, 2023, as compared to the same period in 2024.
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Proprietary Products other expense (income) changed by $0.4 million for the six months ended June 30, 2024, as compared to the same period in 2023, primarily due to additional asset impairments being recorded in the six months ended June 30, 2023, as compared to the same period in 2024. This was offset by increased losses on foreign exchange transactions and increased contingent consideration expense being recorded in the six months ended June 30, 2024, as compared to the same period in 2023.

Contract-Manufactured Products - Contract-Manufactured Products other expense (income) changed by $0.3 million for the three months ended June 30, 2024, as compared to the same period in 2023 and changed by $0.6 million for the six months ended June 30, 2024, as compared to the same period in 2023.

Corporate and unallocated items - Corporate and unallocated items changed by $1.0 million for the three months ended June 30, 2024, as compared to the same period in 2023, primarily due to the Company recording expense of $2.2 million as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment, offset by the Company recording a benefit of $0.8 million for revised estimates associated with its restructuring plans in the three months ended June 30, 2023 that did not repeat in 2024.

Corporate and unallocated items changed by $9.5 million for the six months ended June 30, 2024, as compared to the same period in 2023, primarily due to the Company recording expense of $11.6 million as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment, offset by the Company recording a benefit of $0.8 million for revised estimates associated with its restructuring plans in the six months ended June 30, 2023 that did not repeat in 2024.

Operating Profit

The following table presents adjusted operating profit, consolidated and by reportable segment, corporate and unallocated items:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Proprietary Products$131.0 $194.2 $257.3 $364.9 
Contract-Manufactured Products17.2 14.9 34.3 32.3 
Corporate and unallocated items(22.0)(26.6)(42.6)(59.4)
Consolidated operating profit$126.2 $182.5 $249.0 $337.8 
Consolidated operating profit margin18.0 %24.2 %17.8 %23.0 %
Unallocated items0.2 2.5 0.4 12.1 
Adjusted consolidated operating profit$126.4 $185.0 $249.4 $349.9 
Adjusted consolidated operating profit margin18.0 %24.5 %17.8 %23.8 %

Consolidated operating profit decreased by $56.3 million, or 30.8%, for the three months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $1.9 million for the three months ended June 30, 2024, as compared to the same period in 2023.

Consolidated operating profit decreased by $88.8 million, or 26.3%, for the six months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $0.6 million for the six months ended June 30, 2024, as compared to the same period in 2023.

Proprietary Products - Proprietary Products operating profit decreased by $63.2 million, or 32.5%, for the three months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $1.7 million, due to the factors described above, most notably lower gross profit driven by lower sales volume and an unfavorable mix of products sold.
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Proprietary Products operating profit decreased by $107.6 million, or 29.5%, for the six months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $0.6 million, due to the factors described above, most notably lower gross profit driven by lower sales volume and an unfavorable mix of products sold.

Contract-Manufactured Products - Contract-Manufactured Products operating profit increased by $2.3 million, or 15.4%, for the three months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $0.2 million, due to the factors described above, most notably the increased sales prices.

Contract-Manufactured Products operating profit increased by $2.0 million, or 6.2%, for the six months ended June 30, 2024, as compared to the same period in 2023, due to the factors described above, most notably the increased sales prices.

Corporate and unallocated - Excluding the unallocated items, Corporate costs decreased by $2.3 million, or 9.5%, for the three months ended June 30, 2024, as compared to the same period in 2023, due to the factors described above, most notably the decrease in expense related to stock-based compensation.

Excluding the unallocated items, Corporate costs decreased by $5.1 million, or 10.8%, for the six months ended June 30, 2024, as compared to the same period in 2023, due to the factors described above, most notably the decrease in expense related to stock-based compensation.

For unallocated items, please refer to the Financial Performance Summary section above for details.

Interest Expense, Net and Interest Income

The following table presents interest expense, net, and interest income by significant component:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Interest expense$3.6 $4.0 $7.2 $7.3 
Capitalized interest(2.1)(1.3)(4.1)(2.4)
Interest expense, net$1.5 $2.7 $3.1 $4.9 
Interest income$(4.0)$(5.0)$(10.2)$(9.8)
Interest expense, net, decreased by $1.2 million, for the three months ended June 30, 2024, as compared to the same period in 2023, and decreased by $1.8 million, for the six months ended June 30, 2024, as compared to the same period in 2023, due to an increase in capitalized interest.

Interest income decreased by $1.0 million for the three months ended June 30, 2024, as compared to the same period in 2023, primarily due to the Company having a lower average cash balance in three months ended June 30, 2024, as compared to the same period in 2023. Interest income increased by $0.4 million for the six months ended June 30, 2024, as compared to the same period in 2023, due primarily from 2024 investments in liquid low-risk money market funds or bank deposits in the U.S., Europe, and South America yielding higher interest rates compared to 2023.

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Income Tax Expense
The provision for income taxes was $21.9 million and $34.8 million for the three months ended June 30, 2024 and 2023, respectively, and the effective tax rate was 17.0% and 18.8%, respectively. The decrease in the effective tax rate is primarily due to a shift in the forecasted geographic earnings mix, offset by a decrease in the tax benefit related to stock-based compensation for the three months ended June 30, 2024 as compared to the same period in 2023.

The provision for income taxes was $38.3 million and $58.4 million for the six months ended June 30, 2024 and 2023, respectively, and the effective tax rate was 15.0% and 17.0%, respectively. The decrease in the effective tax rate is primarily due to a shift in the forecasted geographic earnings mix, offset by a decrease in the tax benefit related to stock-based compensation for the for the six months ended June 30, 2024, as compared to the same period in 2023.

Equity in Net Income of Affiliated Companies

Equity in net income of affiliated companies decreased by $0.5 million for the three months ended June 30, 2024, as compared to the same period in 2023, due to less favorable operating results at Daikyo.

Equity in net income of affiliated companies decreased by $1.9 million for the six months ended June 30, 2024, as compared to the same period in 2023, due to less favorable operating results at Daikyo.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

Cash Flows

The following table presents cash flow data for the six months ended June 30:
($ in millions)20242023
Net cash provided by operating activities$283.2 $307.3 
Net cash used in investing activities$(191.8)$(164.2)
Net cash used in financing activities$(489.3)$(247.8)

Net Cash Provided by Operating Activities – Net cash provided by operating activities decreased by $24.1 million for the six months ended June 30, 2024, as compared to the same period in 2023, primarily due to a decline in operating results, offset by favorable working capital management.

Net Cash Used in Investing Activities – Net cash used in investing activities increased by $27.6 million for the six months ended June 30, 2024, as compared to the same period in 2023, due to an increase in capital expenditures for additional manufacturing capacity to meet customer demand.

Net Cash Used in Financing Activities – Net cash used in financing activities increased by $241.5 million for the six months ended June 30, 2024, as compared to the same period in 2023, primarily due to an increase in purchases under our share repurchase program in 2024, as compared to 2023.

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Liquidity and Capital Resources

The table below presents selected liquidity and capital measures:
($ in millions)June 30,
2024		December 31,
2023
Cash and cash equivalents$446.2 $853.9 
Accounts receivable, net$479.4 $512.0 
Inventories$419.2 $434.7 
Accounts payable$211.7 $242.4 
Debt$205.8 $206.8 
Equity$2,576.8 $2,881.0 
Working capital$849.3 $1,264.6 

Cash and cash equivalents include all instruments that have maturities of ninety days or less when purchased. Working capital is defined as current assets less current liabilities.

Cash and cash equivalents – Our cash and cash equivalents balance at June 30, 2024 consisted of cash held in depository accounts with banks around the world and cash invested in high-quality, short-term investments. The cash and cash equivalents balance at June 30, 2024 included $140.9 million of cash held by subsidiaries within the U.S., and $305.3 million of cash held by subsidiaries outside of the U.S. During the six months ended June 30, 2024, we purchased 1,239,015 shares of our common stock under the share repurchase program at a cost of $454.1 million, or an average price of $366.53 per share.

Working capital – Working capital at June 30, 2024 decreased by $415.3 million, or 32.8%, as compared to December 31, 2023, which includes an unfavorable foreign currently translation impact of $23.1 million. Excluding the impact of currency exchange rates, cash and cash equivalents, accounts receivable and total current liabilities decreased by $398.3 million, $22.7 million and $27.7 million, respectively.

The decrease in cash and cash equivalents was due to capital expenditures and share repurchases, offset by cash from operations during the six months ended June 30, 2024. The decrease in accounts receivable is primarily due to reduced net sales leading up to the June 30, 2024 balance sheet date as compared to the December 31, 2023 balance sheet date. The decrease in total current liabilities was primarily caused by a decline in accounts payable and the payout of the 2023 annual incentive plan accrual during the six months ended June 30, 2024.

Debt and credit facilities – The $1.0 million decrease in total debt at June 30, 2024, as compared to December 31, 2023, resulted from debt repayments under our Term Loan.

Our sources of liquidity include our Credit Facility. At June 30, 2024, we had no outstanding borrowings under the Credit Facility. At June 30, 2024, the borrowing capacity available under the Credit Facility, including outstanding letters of credit of $2.4 million, was $497.6 million. We do not expect any significant limitations on our ability to access this source of funds.

Pursuant to the financial covenants in our debt agreements, we are required to maintain established interest coverage ratios and not to exceed established leverage ratios. In addition, the agreements contain other customary covenants, none of which we consider restrictive to our operations. At June 30, 2024, we were in compliance with all of our debt covenants.

We believe that cash on hand and cash generated from operations, together with availability under our Credit Facility, will be adequate to address our foreseeable liquidity needs based on our current expectations of our business operations, capital expenditures and scheduled payments of debt obligations.

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Commitments and Contractual Obligations

A summary of future material cash payments resulting from commitments and contractual obligations was provided in our 2023 Annual Report. During the three months ended June 30, 2024, there were no material changes outside of the ordinary course of business to our commitments and contractual obligations.

OFF-BALANCE SHEET ARRANGEMENTS

At June 30, 2024, we had no off-balance sheet financing arrangements other than unconditional purchase obligations incurred in the ordinary course of business and outstanding letters of credit related to various insurance programs, as noted in our 2023 Annual Report.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

There have been no changes to the Critical Accounting Policies and Estimates disclosed in Part II, Item 7 of our 2023 Annual Report.

NEW ACCOUNTING STANDARDS

There were no new accounting standards adopted during the three months ended June 30, 2024, see Note 2, New Accounting Standards.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Our disclosure and analysis in this Form 10-Q contains some forward-looking statements that are based on management’s beliefs and assumptions, current expectations, estimates and forecasts. We also provide forward-looking statements in other materials we release to the public, as well as oral forward-looking statements. Such statements provide our current expectations or forecasts of future events. They do not relate strictly to historical or current facts. We have attempted, wherever possible, to identify forward-looking statements by using words such as “plan,” “expect,” “believe,” “intend,” “will,” “estimate,” “continue” and other words of similar meaning in conjunction with, among other things, discussions of future operations and financial performance, as well as our strategy for growth, product development, market position and expenditures. All statements that address operating performance or events or developments that we expect or anticipate will occur in the future - including statements relating to sales and earnings per share growth, cash flows or uses, and statements expressing views about future operating results - are forward-looking statements.

Forward-looking statements are based on current expectations of future events. The forward-looking statements are, and will be, based on management’s then-current views and assumptions regarding future events and operating performance, and speak only as of their dates. Investors should realize that, if underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. Investors are therefore cautioned not to place undue reliance on any forward-looking statements.

The following are some important factors that could cause our actual results to differ from our expectations in any forward-looking statements:
•sales demand and our ability to meet that demand;
•competition from other providers in our businesses, including customers’ in-house operations, and from lower-cost producers in emerging markets, which can impact unit volume, price and profitability;
•customers’ changing inventory requirements and manufacturing plans that alter existing orders or ordering patterns for the products we supply to them;
•interruptions or weaknesses in our supply chain, including from reasons beyond our control such as extreme weather, longer-term climate changes, natural disasters, pandemic, war, accidental damage, or
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unauthorized access to our or our customers’ information and systems, which could cause delivery delays or restrict the availability of raw materials, key purchased components and finished products;
•the timing, regulatory approval and commercial success of customer products that incorporate our products and systems;
•whether customers agree to incorporate our products and delivery systems with their new and existing drug products, the ultimate timing and successful commercialization of those products and systems, which involves substantial evaluations of the functional, operational, clinical and economic viability of our products, and the rate, timing and success of regulatory approval for the drug products that incorporate our components and systems;
•the timely and adequate availability of filling capacity, which is essential to conducting definitive stability trials and the timing of first commercialization of customers’ products in Crystal Zenith prefilled syringes;
•profitability, or mix, of the products sold in any reporting period, including lower-than-expected sales growth of our high-value proprietary product offerings;
•maintaining or improving production efficiencies and overhead absorption;
•dependence on third-party suppliers and partners, some of which are single-source suppliers of critical materials and products, including our Japanese partner and affiliate, Daikyo;
•the loss of key personnel or highly-skilled employees;
•the availability and cost of skilled employees required to meet increased production, managerial, research and other needs, including professional employees and persons employed under collective bargaining agreements;
•the successful and timely implementation of price increases necessary to offset rising production costs, including raw material prices, particularly petroleum-based raw materials;
•the cost and progress of development, regulatory approval and marketing of new products;
•our ability to obtain and maintain licenses in any jurisdiction in which we do business;
•the relative strength of USD in relation to other currencies, particularly the Euro, SGD, the Danish Krone, Yen, Colombian Peso, Brazilian Real, and the South Korean Won; and
•the potential adverse effects of global healthcare legislation on customer demand, product pricing and profitability.

This list sets forth many, but not all, of the factors that could affect our ability to achieve results described in any forward-looking statements. Investors should understand that it is not possible to predict or identify all of the factors and should not consider this list to be a complete statement of all potential risks and uncertainties. For further discussion of these and other factors, see the risk factors disclosed in Part I, Item 1A of our 2023 Annual Report as well as Part II, section 1A of this quarterly report.

Except as required by law or regulation, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in our exposure to market risk or the information provided in Part II, Item 7A of our 2023 Annual Report.

40
ITEM 4.  CONTROLS AND PROCEDURES

Disclosure controls are controls and procedures designed to reasonably ensure that information required to be disclosed in our reports filed under the Exchange Act, such as this quarterly report, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

Evaluation of Disclosure Controls and Procedures
An evaluation was performed under the supervision and with the participation of our management, including our CEO and CFO, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934), as of the end of the period covered by this quarterly report on Form 10-Q. Based on this evaluation, our CEO and CFO have concluded that, as of June 30, 2024, our disclosure controls and procedures are effective.

Changes in Internal Controls
During the quarter ended June 30, 2024, there have been no changes to our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II.  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

None.

ITEM 1A.  RISK FACTORS

There are no material changes to the risk factors disclosed in Part I, Item 1A of our 2023 Annual Report.

41
ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table shows information with respect to purchases of our common stock made during the three months ended June 30, 2024 by us or any of our “affiliated purchasers” as defined in Rule 10b-18(a)(3) under the Exchange Act:

PeriodTotal number of shares purchased (1)Average price paid per share (1)Total number of shares purchased as part of publicly announced plans or programs (1)Approximate dollar value of shares that may yet be purchased under the plans or programs (1)
April 1 - 30, 2024244,913 $384.04 244,913 200,600,000 
May 1 - 31, 2024217,672 357.64 217,672 122,800,000 
June 1 - 30, 202446,751 326.54 46,751 107,500,000 
Total509,336 $367.48 509,336 107,500,000 

(1)In February 2023, the Board of Directors approved a share repurchase program under which we may repurchase up to $1.0 billion in shares of common stock. The share repurchase program does not have an expiration date under which we may repurchase common stock on the open market or in privately-negotiated transactions. The number of shares to be repurchased and the timing of such transactions will depend on a variety of factors, including market conditions.



42
ITEM 6.  EXHIBITS
Exhibit NumberDescription
3.1
3.2
4.1
4.2
4.3
4.4 (1)
Instruments defining the rights of holders of long-term debt securities of West and its subsidiaries have been omitted.
10.1
31.1
31.2
32.1*
32.2*
101.INSThe instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
101.SCHInline XBRL Taxonomy Extension Schema Document
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document
101.LABInline XBRL Taxonomy Extension Label Linkbase Document
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document
104Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set.

(1) We agree to furnish to the SEC, upon request, a copy of each instrument with respect to issuances of long-term debt of the Company and its subsidiaries.

* Furnished, not filed.
43
SIGNATURE

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

WEST PHARMACEUTICAL SERVICES, INC.
(Registrant)




By: /s/ Bernard J. Birkett
Bernard J. Birkett
Senior Vice President, Chief Financial Officer



July 25, 2024
44
AMENDED AND RESTATED ARTICLES OF INCORPORATION OF WEST PHARMACEUTICAL SERVICES, INC. (Effective as of April 24, 2024) 1. The name of the Corporation is West Pharmaceutical Services, Inc. 2. The location and post office address of the Corporation’s registered office in Pennsylvania is c/o Corporation Service Company, 2595 Interstate Drive, Suite 103, Harrisburg, PA 17110. 3. The Corporation is incorporated under the Pennsylvania Business Corporation Law and shall have unlimited power to engage in and to do any lawful act concerning any or all lawful business, including manufacturing, processing, research and development, for which corporations may be incorporated under the Pennsylvania Business Corporation Law. 4. The term for which the Corporation is to exist is perpetual. 5. Capital Stock. The aggregate number of shares of capital stock which the Corporation shall have authority to issue is 203,000,000 shares, consisting of (i) 3,000,000 shares of Preferred Stock, par value $.25 per share (“Preferred Stock”) and (ii) 200,000,000 shares of Common Stock, par value $.25 per share (“Common Stock”). The following is a statement of the designations, preferences qualifications, limitations, restrictions and the special or relative rights granted to or imposed upon the shares of each such class: Preferred Stock (a) Issue in Series. Preferred Stock may be issued from time to time in one or more series, each such series to have the terms stated herein and in the resolution of the board of directors providing for its issue. All shares of any one series of Preferred Stock shall be identical, but shares of different series of Preferred Stock need not rank equally or be identical except insofar as provided by law or hereunder. (b) Creation of Series. The board of directors shall have authority by resolution to cause to be created one or more series of Preferred Stock, and to determine and fix with respect to each series, prior to the issuance of any shares of the series to which such resolution relates: (i) The distinctive designation of the series and the number of shares which shall constitute the series, which number may be increased or decreased (but not below the number of shares then outstanding) from time to time by action of the board of directors; (ii) The dividend rate and the times of payment of dividends on the shares of the series, whether dividends shall be cumulative, and, if so, from what date or dates; (iii) The price or prices at which, and the terms and conditions on which, the shares of the series may be redeemed at the option of the Corporation; (iv) Whether or not the shares of the series shall be entitled to the benefit of a retirement or sinking fund to be applied to the purchase or redemption of such shares and, if so entitled, the annual amount of such fund and the terms and provisions relative to the operation thereof; (v) Whether or not the shares of the series shall be convertible into, or exchangeable for, shares of any other series of the same or any other class or classes of stock of the Corporation, and if so convertible or exchangeable, the conversion price or prices, or the rates of exchange, and any adjustments thereof, if

 
- 2 - any, at which such conversion or exchange may be made, and any other terms and conditions of such conversion or exchange; (vi) The rights of the shares of the series in the event of voluntary or involuntary liquidation, dissolution or winding up of the Corporation; (vii) Whether or not the shares of the series shall have priority over or parity with or be junior to the shares of any other series or class in any respect or shall be entitled to the benefit of limitations restricting the issuance of shares of any other series or class having priority over or being on a parity with the shares of such series in any respect, or restricting the payment of dividends on, or the making of other distributions in respect of shares of any other series or class ranking junior to the shares of the series as to dividends or assets, or restricting the purchase or redemption of the shares of any such junior series or class, and the terms of any such restrictions; (viii) Whether the series shall have voting rights, in addition to the voting rights provided by law, and, if so, the terms of such voting rights; and (ix) Any other preferences qualifications, privileges and other relative or special rights and limitations of that series. (c) Dividends. Holders of Preferred Stock shall be entitled to receive, when and as declared by the board of directors, out of funds legally available for the payment thereof, dividends at the rates fixed by the board of directors for the respective series, and no more, before any dividends shall be declared and paid, or set apart for payment, on Common Stock with respect to the same dividend period. (d) Preference on Liquidation. In the event of the voluntary or involuntary liquidation, dissolution or winding up of the Corporation, holders of each series of Preferred Stock shall be entitled to receive the amount fixed for such series plus, in the case of any series on which dividends shall have been determined by the board of directors to be cumulative, an amount equal to all dividends accumulated and unpaid thereon to the date of final distribution whether or not earned or declared. If the assets of the Corporation are not sufficient to pay such amounts in full, holders of all shares of Preferred Stock shall participate ratably in the distribution of assets in proportion to the full amounts to which they are entitled or in such order or priority, if any, as shall have been fixed in the resolution or resolutions providing for the issuance of the series of Preferred Stock. Neither the merger nor consolidation of the Corporation into or with any other corporation, nor a sale, transfer or lease of all or part of its assets, shall be deemed a liquidation of the Corporation within the meaning of this paragraph. (e) Redemption. The Corporation at the option of the board of directors may redeem all or part of the shares of any series of Preferred Stock on the terms and conditions fixed for such series. In case of the redemption of less than all outstanding shares of any series of Preferred Stock, the shares to be redeemed shall be selected by lot or in such other manner as the board of directors determines. (f) Voting Rights. Except as otherwise required by law or as otherwise provided in any certificate creating any series of Preferred Stock, the holders of such of the series of Preferred Stock, if any, as shall have been granted such power pursuant to any certificate creating any series of Preferred Stock shall, together with the holders of Common Stock, exclusively possess voting power in the election of directors and for all other purposes, and the holders of the other series of Preferred Stock shall have no voting power and shall not be entitled to any notice of any meeting of shareholders. Series A Junior Participating Preferred Stock

 
- 3 - (a) Designation and Amount. There shall be a series of Preferred Stock designated as “Series A Junior Participating Preferred Stock” and the aggregate number of shares constituting such series shall be 50,000. (b) Dividends and Distributions. (i) Subject to the prior and superior rights of the holders of any shares of any series of Preferred Stock ranking prior and superior to the shares of Series A Junior Participating Preferred Stock with respect to dividends, the holders of shares of Series A Junior Participating Preferred Stock shall be entitled to receive, when, as and if declared by the board of directors out of funds legally available for the purpose, quarterly dividends payable in cash on March 31, June 30, September 30 and December 31 in each year (each such date being referred to herein as a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of Series A Junior Participating Preferred Stock, in an amount per share (rounded to the nearest cent) equal to the greater of (a) $10 or (b) subject to the provision for adjustment hereinafter set forth, 1,000 times the aggregate per share amount of all cash dividends, and 1,000 times the aggregate per share amount (payable in kind) of all non-cash dividends or other distributions other than a dividend payable in shares of Common Stock or a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise), declared on the Common Stock since the immediately preceding Quarterly Dividend Payment Date, or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of Series A Junior Participating Preferred Stock. In the event the Corporation shall at any time after January 16, 1990 (the “Rights Declaration Date”) (i) declare any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case the amount to which holders of shares of Series A Junior Participating Preferred Stock were entitled immediately prior to such event under clause (b) of the preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. (ii) The Corporation shall declare a dividend or distribution on the Series A Junior Participating Preferred Stock as provided in paragraph (I) above immediately after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock); provided that, in the event no dividend or distribution shall have been declared on the Common Stock during the period between any Quarterly Dividend Payment Date and the next subsequent Quarterly Dividend Payment Date, a dividend of $10 per share on the Series A Junior Participating Preferred Stock shall nevertheless be payable on such subsequent Quarterly Dividend Payment Date. (iii) Dividends shall begin to accrue and be cumulative on outstanding shares of Series A Junior Participating Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of issue of such shares of Series A Junior Participating Preferred Stock, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the determination of holders of shares of Series A Junior Participating Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of Series A Junior participating Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record date shall be no more than 30 days prior to the date fixed for the payment thereof. (c) Voting Rights. The holders of shares of Series A Junior Participating Preferred Stock shall have the following voting rights:

 
- 4 - (i) Subject to the provision for adjustment hereinafter set forth, each share of Series A Junior Participating Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters submitted to a vote of the shareholders of the Corporation. In the event the Corporation shall at any time after the Rights Declaration Date (a) declare any dividend on Common Stock payable in shares of Common Stock, (b) subdivide the outstanding Common Stock, or (c) combine the~ outstanding Common Stock into a smaller number of shares, then in each such case the number of votes per share to which holders of shares of Series A Junior Participating Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such number by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. (ii) Except as otherwise provided herein or by law, the holders of shares of Series A Junior Participating Preferred Stock and the holders of shares of common Stock shall vote together as one class on all matters submitted to a vote of shareholders of the Corporation. (iii) (A) If at any time dividends on any Series A Junior Participating Preferred Stock shall be in arrears in an amount equal to six (6) quarterly dividends thereon, the occurrence of such contingency shall mark the beginning of a period (herein called a “default period”) which shall extend until such time when all accrued and unpaid dividends for all previous quarterly dividend periods and for the current quarterly dividend period on all shares of Series A Junior Participating Preferred Stock then outstanding shall have been declared and paid or set apart for payment. During each default period, all holders of Preferred Stock (including holders of the Series A Junior Participating Preferred Stock) with dividends in arrears in an amount equal to six (6) quarterly dividends thereon, voting as a class, irrespective of series, shall have the right to elect two (2) directors. (B) During any default period, such voting right of the holders of Series A Junior Participating Preferred Stock may be exercised initially at a special meeting called pursuant to subparagraph (C) of this paragraph (c)(iii) or at any annual meeting of shareholders, and thereafter at annual meetings of shareholders, provided that neither such voting right nor the right of the holders of any other series of Preferred Stock, if any, to increase, in certain cases, the authorized number of directors shall be exercised unless the holders of ten percent (10)% in number of shares of Preferred Stock outstanding shall be present in person or by proxy. The absence of a quorum of the holders of Common Stock shall not affect the exercise by the holders of Preferred Stock of such voting right. At any meeting at which the holders of Preferred Stock shall exercise such voting right initially during an existing default period, they shall have the right, voting as a class, to elect directors to fill such vacancies, if any, in the board of directors as may then exist up to two (2) directors or, if such right Is exercised at an annual meeting, to elect two (2) directors. If the number which may be so elected at any special meeting does not amount to the required number, the holders of the Preferred Stock shall have the right to make such increase in the number of directors as shall be necessary to permit the election by them of the required number. After the holders of the Preferred Stock shall have exercised their right to elect directors in any default period and during the continuance of such period, the number of directors shall not be increased or decreased except by vote of the holders of Preferred Stock as herein provided or pursuant to the rights of any equity securities ranking senior to or pari passu with the Series A Junior Participating Preferred Stock. (C) Unless the holders of Preferred Stock shall, during an existing default period, have previously exercised their right to elect directors, the board of directors may order, or any shareholder or shareholders owning in the aggregate not less than ten percent (10%) of the total number of shares of Preferred Stock outstanding, irrespective of series, may request, the calling of a special meeting of the holders of Preferred Stock, which meeting shall thereupon be called by the President, a Vice-President or the Secretary of the Corporation. Notice of such meeting and of any annual meeting at which holders of Preferred Stock are entitled to vote pursuant to this subparagraph (C) shall be given to each holder of record of Preferred Stock by mailing a copy of such notice to him at his last address as the same appears on the books of the Corporation. Such meeting shall be called for a time not earlier than 20 days and not later than 60 days after such order or request or in default of the calling of such meeting within 60 days after such order or request, such meeting may be called on similar notice by

 
- 5 - any shareholder or shareholders owning in the aggregate not less than ten percent (10%) of the total number of shares of Preferred Stock outstanding. Notwithstanding the provisions of this subparagraph (C), no such special meeting shall be called during the period within 60 days immediately preceding the date fixed for the next annual meeting of the shareholders. (D) In any default period, the holders of Common Stock, and other classes of stock of the Corporation if applicable, shall continue to be entitled to elect the whole number of directors until the holders of Preferred Stock shall have exercised their right to elect two (2) directors voting as a class, after the exercise of which right (x) the directors so elected by the holders of Preferred Stock shall continue in office until their successors shall have been elected by such holders or until the expiration of the default period, and (y) any vacancy in the board of directors may (except as provided in subparagraph (B) of this paragraph (c)(iii) be filled by vote of a majority of the remaining directors theretofore elected by the holders of the class of stock which elected the director whose office shall have become vacant. References in this subparagraph (D) to directors elected by the holders of a particular class of stock shall include directors elected by such directors to fill vacancies as provided in clause (y) of the preceding sentence. (E) Immediately upon the expiration of a default period, (x) the right of the holders of Preferred Stock as a class to elect directors shall cease, (y) the term of any directors elected by the holders of Preferred Stock as a class shall terminate, and (z) the number of directors shall be such number as may be provided for in the Articles of Incorporation or Bylaws irrespective of any increase made pursuant to the provisions of subparagraph (B) of this paragraph (c)(iii) (such number being subject, however, to change thereafter in any manner provided by law or in the Articles of Incorporation or Bylaws). Any vacancies in the board of directors effected by the provisions of clauses (y) and (z) in the preceding sentence may be filled by a majority of the remaining directors. (iv) Except as set forth herein, holders of Series A Junior participating Preferred Stock shall have no special voting rights and their consent shall not be required (except to the extend they are entitled to vote with holders of Common Stock as set forth herein) for taking any corporate action. (d) Certain Restrictions (i) Whenever quarterly dividends or other dividends or distributions payable on the Series A Junior Participating Preferred Stock as provided in paragraph (b) are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on shares of Series A Junior Participating Preferred Stock outstanding shall have been paid in full, the Corporation shall not (A) declare or pay dividends on, make any other distributions on, or redeem or purchase or otherwise acquire for consideration any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Junior Participating Preferred Stock; (B) declare or pay dividends on or make any other distributions on any shares of stock ranking on a party (either as to dividends or upon liquidation, dissolution or winding up) with the Series A Junior Participating Preferred Stock, except dividends paid ratably on the Series A Junior Participating Preferred Stock and all such parity stock on which dividends are payable or in arrears in proportion to the total amounts to which the holders of all such shares are then entitled; (C) redeem or purchase or otherwise acquire for consideration shares of any stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series A Junior Participating Preferred Stock, provided that the Corporation may at any time redeem, purchase or otherwise acquire shares of any such parity stock in exchange for shares of any stock of the Corporation ranking junior (either as to dividends or upon dissolution, liquidation or winding up) to the Series A Junior Participating Preferred Stock; or

 
- 6 - (D) purchase or otherwise acquire for consideration any shares of Series A Junior Participating Preferred Stock, or any shares of stock ranking on a parity with the Series A Junior Participating Preferred Stock, except in accordance with a purchase offer made in writing or by publication (as determined by the board of directors) to all holders of such shares upon such terms as the board of directors, after consideration of the respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall determine in good faith will result in fair and equitable treatment among the respective series or classes. (ii) the Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for consideration any shares of stock of the Corporation unless the Corporation could, under paragraph (d)(i), purchase or otherwise acquire such shares at such time and in such manner. (e) Reacquired Shares. Any shares of Series A Junior Participating Preferred Stock purchased or otherwise acquired by the Corporation in any manner whatsoever shall be retired and cancelled promptly after the acquisition thereof. All such shares shall upon their cancellation become authorized but unissued shares of Preferred Stock and may be reissued as part of a new series of Preferred Stock to be created by resolution or resolutions of the board of directors, subject to the conditions and restrictions on issuance set forth herein. (f) Liquidation, Dissolution or Winding Up. (i) Upon any liquidation (voluntary or otherwise), dissolution or winding up of the Corporation, no distribution shall be made to the holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Junior Participating Preferred Stock unless, prior thereto, the holders of shares of Series A Junior Participating Preferred Stock shall have received $10 per share, plus an amount equal to accrued and unpaid dividends any distribution thereon, whether or not declared, to the date of such payment (the “Series A Liquidation Preference”). Following the payment of the full amount of the Series A Liquidation Preference, no additional distributions shall be made to the holders of shares of Series A Junior Participating Preferred Stock unless, prior thereto, the holders of shares of Common Stock shall have received an amount per share (the “Common Adjustment”) equal to the quotient obtained by dividing (a) the Series A Liquidation Preference by (b) 1,000 (as appropriately adjusted as set forth in paragraph (iii) below to reflect such events as stock splits, stock dividends and recapitalizations with respect to the Common Stock) (such number in clause (b), the “Adjustment Number”). Following the payment of the full amount of the Series A Liquidation Preference and the Common Adjustment in respect of all outstanding shares of Series A Junior participating Preferred Stock and common Stock, respectively, holders of Series A Junior Participating Preferred Stock and holders of shares of Common Stock shall receive their ratable and proportionate share of the remaining assets to be distributed in the ratio of the Adjustment Number to I with respect to such Preferred Stock and common Stock, on a per share basis, respectively. (ii) In the event, however, that there are not sufficient assets available to permit payment in full of the Series A Liquidation Preference and the liquidation preferences of all other series of Preferred Stock, if any, which rank on a parity with the Series A Junior Participating Preferred Stock, then such remaining assets shall be distributed ratably to the holders of such parity shares in proportion to their respective liquidation preferences. In the event, however, that there are not sufficient assets available to permit payment in full of the Common Adjustment, then such remaining assets shall be distributed ratably to the holders of Common Stock. (iii) In the event the Corporation shall at any time after the Rights Declaration Date (a) declare any dividend on Common Stock payable in shares of Common Stock, (b) subdivide the outstanding Common Stock, or (c) combine the outstanding common Stock into a smaller number of shares, then in each such case the Adjustment Number in effect immediately prior to such event shall be adjusted by multiplying such Adjustment Number by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

 
- 7 - (g) Consolidation, Merger, etc. In case the Corporation shall enter into any consolidation, merger, combination or other transaction in which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property, then in any such case the shares of Series A Junior Participating Preferred Stock shall at the same time be similarly exchanged or changed in an amount per share (subject to the provision for adjustment hereinafter set forth) equal to 1,000 times the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common Stock is changed or exchanged. In the event the Corporation shall at any time after the Rights Declaration Date (i) declare any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case the amount set forth in the preceding sentence with respect to the exchange or change of shares of Series A Junior Participating Preferred Stock shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. (h) No Redemption. The shares of Series A Junior Participating Preferred Stock shall not be redeemable. (i) Ranking. The Series A Junior Participating Preferred Stock shall rank junior to all other series of Preferred Stock as to the payment of dividends and the distribution of assets unless the terms of any such series shall provide otherwise. (j) Amendment. The Articles of Incorporation of the Corporation shall not be further amended in any manner which would materially alter or change the powers, preferences or special rights of the Series A Junior Participating Preferred Stock so as to affect them adversely without the affirmative vote of the holders of a majority or more of the outstanding shares of Series A Junior Participating Preferred Stock, voting separately as a class. (k) Fractional Shares. Series A Junior Participating Preferred Stock may be issued in fractions of a share which shall entitle the holder, in proportion to such holder’s fractional shares, to exercise voting rights, receive dividends participate in distributions and to have the benefit of all other rights of holders of Series A Junior Participating Preferred Stock. Common Stock (a) Dividends. Holders of Common Stock shall be entitled to receive such dividends as may be declared by the board of directors, except that the Corporation will not declare, pay or set apart for payment any dividend on shares of Common Stock (other than dividends payable in Common Stock), or directly or indirectly make any distribution on, redeem, purchase or otherwise acquire any such shares, if at the time of such action the Corporation is in default with respect to any dividend due and payable on, or any sinking or purchase fund requirement relating to, any shares of Preferred Stock. (b) Distribution of Assets. In the event of voluntary or involuntary liquidation, dissolution or winding up of the Corporation, holders of Common Stock shall be entitled to receive pro rate all of the remaining assets of the Corporation available for distribution to its shareholders after all amounts to which the holders of Preferred Stock are entitled have been paid or set aside in cash for payment. (c) Voting Rights. Except as otherwise required by law or provided in any certificate creating any series of Preferred Stock, the holders of Common Stock shall have the exclusive right to vote in the election of directors and for all other purposes, each such holder being entitled to one vote for each share thereof held.

 
- 8 - 6. [OMITTED] 7. Evaluation of Certain Proposals by the Board of Directors. The board of directors of the Corporation, when evaluating any proposal from another party to (a) make a tender offer for securities of the Corporation, (b) merge or consolidate the Corporation with another corporation, (c) purchase or otherwise acquire substantially all of the properties or assets of the Corporation, or (d) engage in any other transaction having a similar effect upon the properties, operations or control of the Corporation, shall, in connection with the exercise of its judgment in determining what is the best interests of the Corporation and its shareholders, give due consideration to the following: (i) the character, integrity, business philosophy and financial status of the other party or parties to the transaction; (ii) the consideration to be received by the Corporation or its shareholders in connection with such transaction, as compared to: (a) the current market price or value of the Corporation’s properties or securities; (b) the estimated future value of the Corporation, its properties or securities; and (c) such other measures of the value of the Corporation, its properties or securities as the directors may deem appropriate. (iii) the projected social, legal and economic effects of the proposed action or transaction upon the Corporation, its employees, suppliers and customers and the communities in which the Corporation does business; (iv) the general desirability of the Corporation’s continuing as an independent entity; and (v) such other factors as the board of directors may deem relevant. 8. Directors (a) Number, Election and Term. Except as otherwise fixed by or pursuant to the provisions of Article 5 hereof relating to the rights of the holders of any class or series of stock having a preference over the Common Stock as to dividends or in the event of and during a default period to elect directors under specified circumstances, the number of the directors of the Corporation shall be fixed from time to time pursuant to the Bylaws of the Corporation. At the annual meeting of shareholders held in 2012, and at each succeeding annual meeting of the shareholders of the Corporation, the directors shall not be classified, and the directors, other than those who may be elected by the holders of any class or series of stock having a preference over the Common Stock as to dividends or in the event and during a default period, shall be elected and shall hold office until the next annual meeting of shareholders and until their respective successors are elected and qualified, or until the earlier of his or her death, resignation, retirement, disqualification or removal from office. Subject to paragraph (c) of this Article 8, at each meeting of the stockholders for the election of directors at which a quorum is present, the persons receiving a majority of the votes cast at such election shall be elected; provided, however, that at any meeting of the stockholders for which the Secretary of the Corporation determines that the number of nominees for director exceeds the number of directors to be elected, directors shall be elected by a plurality of the votes of the shares represented in person or represented by proxy at such meeting and entitled to vote on the election of directors. For purposes of this paragraph (a), a majority of the votes cast means that the number of shares voted “for” a director must exceed the number of votes cast “against” that director. Votes cast shall include “for” and “against” a nominee, but shall exclude “abstentions” and “broker non-votes” with respect to that nominee’s election. If a director is not elected, the director shall tender his or her resignation to the Board of Directors. The Board of Directors will publicly disclose its decision with respect to whether to accept or reject the resignation, or whether other action should be taken and the rationale behind it within ninety (90) days from the date of the certification of the election results. The Board of Directors shall have the authority to adopt and amend appropriate Bylaws to implement this paragraph (a).

 
- 9 - (b) Vacancies. Vacancies in the board of directors, including vacancies resulting from an increase in the number of directors, shall be filled only by a majority of the directors then in office, though less than a quorum, and each person so elected shall be a director to serve for the balance of the unexpired term and until his successor is duly elected and qualified. (c) Cumulative Voting in Certain Circumstances (i) Except as and to the extent otherwise provided in this paragraph (c) shareholders of the Corporation shall not be entitled to cumulative voting rights in any election of directors of the Corporation. (ii) There shall be cumulative voting in any election of directors of the Corporation on or after the occurrence of both of the following events: (A) the public announcement (which, for purposes of this definition, shall include, without limitation, a report filed pursuant to Section 13(d) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), by the Corporation or a 40% Shareholder that a 40% Shareholder has become such. and (B) such 40% Shareholder makes, or in any way participates in, directly or indirectly, any “solicitation” of “proxies” (as such terms are defined or used in Regulation 14A under the Exchange Act) or becomes a “participant” in any “election contest” (as such terms are defined or used in Rule 14a-11 of the Exchange Act) with respect to the Corporation; seeks to advise or influence any person (within the meaning of Section 13(d)(3) of the Exchange Act) with respect to the voting of any securities of the Corporation: or executes any written consent in lieu of a meeting of holders of the Voting Stock. “40% Shareholder” shall mean any Person who or which, together with all Affiliates and Associate of such Person, shall be the Beneficial Owner of 40% or more of the Voting Stock but shall not include (i) the Corporation, (ii) any wholly owned Subsidiary, (iii) any employee benefit plan of the Corporation or of any Subsidiary, or (iv) any Person holding securities of the Corporation for or pursuant to the terms of any such plan. Notwithstanding the foregoing, no Person shall become a “40% Shareholder” as the result of an acquisition of Common Stock by the Corporation which, by reducing the number of shares outstanding, increases the proportionate number of shares beneficially owned by such Person to 40% or more of the Voting Stock; provided, however, that if a Person who would otherwise be a 40% Shareholder but for the provisions of this sentence shall, after such share purchases by the Corporation, become the Beneficial Owner of any additional Voting Stock then such Person shall be deemed to be a “40% Shareholder.” (iii) Certain Definitions. For purposes of this Article 8: “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in rule 12b-2 of the General Rules and Regulations under the Exchange Act as in effect on May 3, 1990. A Person shall be deemed the “Beneficial Owner” of and shall be deemed to “beneficially own” any securities: (A) which such Person or any such Person’s affiliates or Associates beneficially owns, directly or indirectly:

 
- 10 - (B) which such Person or any of such Person’s Affiliates or Associates has (A) the right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding (whether or not in writing), or upon the exercise of conversion rights, exchange rights, rights (other than the Rights granted pursuant to the Flip-In Rights Agreement and Flip-Over-Rights Agreement between the Corporation and American Stock Transfer & Trust Company, dated as of January 16, 1990), warrants or options, or otherwise or (B) the right to vote pursuant to any agreement, arrangement or understanding; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, securities tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for purchase or exchange; or (C) which are beneficially owned, directly or indirectly, by any other Person with which such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement or understanding for the purpose of acquiring, holding, voting or disposing of any securities of the Corporation. “Person” shall mean any individual, firm, corporation or other entity, and shall include any successor (by merger or otherwise) of such entity. “Subsidiary” shall mean any corporation or other entity of which a majority of the voting power of the voting equity securities or equity interest is owned, directly or indirectly, by the Corporation. “Voting Stock” means Common Stock and any other securities of the Corporation entitled to vote generally for the election of directors or any security convertible into or exchangeable for or exercisable for the purchase of Common Stock or other securities of the Corporation entitled to vote generally for the election of directors. 9. Uncertificated Shares. Any and all classes or series of shares of capital stock of the Corporation, or any part thereof, may be represented by uncertificated shares to the extent determined by the board of directors, except as required by applicable law, including that shares represented by a certificate that is issued and outstanding shall continue to be represented thereby until the certificate is surrendered to the Corporation. Within a reasonable time after the issuance or transfer of uncertificated shares, the Corporation shall send to the registered owner thereof a written notice containing the information required by applicable law to be set forth or stated on certificates. Except as otherwise expressly provided by law, the rights and obligations of the holders of shares represented by certificates and the rights and obligations of the holders of uncertificated shares of the same class and series shall be identical.

 

EXHIBIT 31.1
CERTIFICATION

I, Eric M. Green, certify that:
1.I have reviewed this quarterly report on Form 10-Q of West Pharmaceutical Services, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


/s/ Eric M. Green
Eric M. Green
President and Chief Executive Officer, Chair of the Board of Directors

Date: July 25, 2024


EXHIBIT 31.2
CERTIFICATION

I, Bernard J. Birkett, certify that:
1.I have reviewed this quarterly report on Form 10-Q of West Pharmaceutical Services, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


/s/ Bernard J. Birkett
Bernard J. Birkett
Senior Vice President, Chief Financial Officer

Date: July 25, 2024


EXHIBIT 32.1


CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906 OF
THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report on Form 10-Q of West Pharmaceutical Services, Inc. (the “Company”) for the period ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Eric M. Green, President and Chief Executive Officer, Chair of the Board of Directors of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.



/s/ Eric M. Green
Eric M. Green
President and Chief Executive Officer, Chair of the Board of Directors

Date: July 25, 2024


EXHIBIT 32.2


CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906 OF
THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report on Form 10-Q of West Pharmaceutical Services, Inc. (the “Company”) for the period ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Bernard J. Birkett, Senior Vice President, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.



/s/ Bernard J. Birkett
Bernard J. Birkett
Senior Vice President, Chief Financial Officer

Date: July 25, 2024


v3.24.2
Cover Page - shares
 6 Months Ended
Jun. 30, 2024
Jul. 22, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2024  
Document Transition Report false  
Entity File Number 1-8036  
Entity Registrant Name WEST PHARMACEUTICAL SERVICES, INC.  
Entity Incorporation, State or Country Code PA  
Entity Tax Identification Number 23-1210010  
Entity Address, Address Line One 530 Herman O. West Drive  
Entity Address, City or Town Exton  
Entity Address, State or Province PA  
Entity Address, Postal Zip Code 19341-1147  
City Area Code 610  
Local Phone Number 594-2900  
Title of each class Common Stock, par value $0.25 per share  
Trading Symbol WST  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   72,541,593
Entity Central Index Key 0000105770  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Amendment Flag false  
v3.24.2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Income Statement [Abstract]        
Net sales $ 702.1 $ 753.8 $ 1,397.5 $ 1,470.4
Cost of goods and services sold 472.1 462.4 937.3 907.7
Gross profit 230.0 291.4 460.2 562.7
Research and development 17.5 16.5 35.1 33.6
Selling, general and administrative expenses 83.0 88.4 169.7 174.4
Other expense (income) (Note 14) 3.3 4.0 6.4 16.9
Operating profit 126.2 182.5 249.0 337.8
Interest expense, net 1.5 2.7 3.1 4.9
Interest income (4.0) (5.0) (10.2) (9.8)
Other nonoperating (income) expense 0.0 (0.1) 0.0 (0.1)
Income before income taxes and equity in net income of affiliated companies 128.7 184.9 256.1 342.8
Income tax expense 21.9 34.8 38.3 58.4
Equity in net income of affiliated companies (4.5) (5.0) (8.8) (10.7)
Net income $ 111.3 $ 155.1 $ 226.6 $ 295.1
Net income per share:        
Basic (in dollars per share) $ 1.52 $ 2.08 $ 3.09 $ 3.96
Diluted (in dollars per share) $ 1.51 $ 2.06 $ 3.06 $ 3.91
Weighted average shares outstanding:        
Basic (in shares) 73.0 74.3 73.3 74.4
Diluted (in shares) 73.7 75.4 74.0 75.5
v3.24.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Comprehensive Income [Abstract]        
Net income $ 111.3 $ 155.1 $ 226.6 $ 295.1
Other comprehensive (loss) income, net of tax:        
Foreign currency translation adjustments, net of tax of $0.7, $1.3, $1.7 and $1.5, respectively (21.7) (11.3) (68.0) 4.0
Defined benefit pension and other postretirement plan adjustments, net of tax of $(0.1), $(0.3), $(0.1), and $(0.5), respectively (0.2) (0.9) (0.4) (1.4)
Net loss on equity affiliate accumulated other comprehensive income, net of tax of $0.0, $0.0, $0.0 and $0.0, respectively (0.1) (0.1) (0.2) (0.1)
Net loss on derivatives, net of tax of $0.3, $(1.0), $(0.4) and $(1.1), respectively (2.6) (2.8) (4.5) (3.0)
Other comprehensive (loss) income, net of tax (24.6) (15.1) (73.1) (0.5)
Comprehensive income $ 86.7 $ 140.0 $ 153.5 $ 294.6
v3.24.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Comprehensive Income [Abstract]        
Foreign currency translation adjustments, tax $ 0.7 $ 1.3 $ 1.7 $ 1.5
Defined benefit pension and other postretirement plan adjustments, tax (0.1) (0.3) (0.1) (0.5)
Net loss on equity affiliate accumulated other comprehensive income, tax 0.0 0.0 0.0 0.0
Net loss on derivatives, tax $ 0.3 $ (1.0) $ (0.4) $ (1.1)
v3.24.2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 446.2 $ 853.9
Accounts receivable, net 479.4 512.0
Inventories 419.2 434.7
Other current assets 138.2 135.8
Total current assets 1,483.0 1,936.4
Property, plant and equipment 2,863.6 2,738.0
Less: accumulated depreciation and amortization 1,369.9 1,324.7
Property, plant and equipment, net 1,493.7 1,413.3
Operating lease right-of-use assets 110.3 99.2
Investments in affiliated companies 198.2 210.0
Goodwill 107.3 108.5
Intangible assets, net 12.9 15.1
Deferred income taxes 33.9 25.7
Other noncurrent assets 50.1 21.3
Total Assets 3,489.4 3,829.5
Current liabilities:    
Notes payable and other current debt 132.9 134.0
Accounts payable 211.7 242.4
Accrued salaries, wages and benefits 82.9 105.9
Income taxes payable 16.9 16.6
Operating lease liabilities 20.3 17.7
Other current liabilities 169.0 155.2
Total current liabilities 633.7 671.8
Long-term debt 72.9 72.8
Deferred income taxes 13.7 12.7
Pension and other postretirement benefits 29.1 29.6
Operating lease liabilities 84.6 84.5
Deferred compensation benefits 15.5 18.6
Other long-term liabilities 63.1 58.5
Total Liabilities 912.6 948.5
Commitments and contingencies (Note 16)
Equity:    
Preferred stock, 3.0 million shares authorized; 0 shares issued and outstanding 0.0 0.0
Common stock, par value $0.25 per share; 200.0 million shares authorized; shares issued: 75.3 million and 75.3 million as of June 30,2024 and December 31, 2023, respectively; shares outstanding: 72.6 million and 73.5 million as of June 30, 2024 and December 31, 2023, respectively 18.8 18.8
Capital in excess of par value 33.5 120.2
Retained earnings 3,720.9 3,523.4
Accumulated other comprehensive loss (216.9) (143.8)
Treasury stock, at cost (2.7 million and 1.8 million shares) (979.5) (637.6)
Total Equity 2,576.8 2,881.0
Total Liabilities and Equity $ 3,489.4 $ 3,829.5
v3.24.2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares
shares in Millions
Jun. 30, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Preferred stock, shares authorized (in shares) 3.0 3.0
Preferred stock, shares issued (in shares) 0.0 0.0
Preferred stock, shares outstanding (in shares) 0.0 0.0
Common stock, par value (in dollars per share) $ 0.25 $ 0.25
Common stock, shares authorized (in shares) 200.0 200.0
Common stock, shares issued (in shares) 75.3 75.3
Common stock, shares outstanding (in shares) 72.6 73.5
Treasury stock, at cost (in shares) 2.7 1.8
v3.24.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Cash flows from operating activities:    
Net income $ 226.6 $ 295.1
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 72.7 64.3
Amortization 1.8 1.4
Stock-based compensation 9.3 16.0
Loss on disposal of plant 0.0 11.6
Asset impairments 0.9 3.4
Other non-cash items, net (7.6) (12.4)
Changes in assets and liabilities (20.5) (72.1)
Net cash provided by operating activities 283.2 307.3
Cash flows from investing activities:    
Capital expenditures (190.8) (157.5)
Other, net (1.0) (6.7)
Net cash used in investing activities (191.8) (164.2)
Cash flows from financing activities:    
Borrowings of long-term debt 35.0 0.0
Repayments of long-term debt (36.1) (1.1)
Principal repayments on finance leases (22.9) 0.0
Dividend payments (29.3) (28.2)
Proceeds from stock-based compensation awards 19.9 24.0
Employee stock purchase plan contributions 3.7 3.5
Shares purchased under share repurchase programs (454.1) (233.5)
Shares repurchased for employee tax withholdings (5.5) (12.5)
Net cash used in financing activities (489.3) (247.8)
Effect of exchange rates on cash (9.8) 6.7
Net decrease in cash and cash equivalents (407.7) (98.0)
Cash, including cash equivalents at beginning of period 853.9 894.3
Cash, including cash equivalents at end of period $ 446.2 $ 796.3
v3.24.2
Basis of Presentation
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Basis of Presentation Basis of Presentation
Basis of Presentation: The condensed consolidated financial statements included in this report are unaudited and have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting and U.S. Securities and Exchange Commission (“SEC”) regulations. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, these financial statements include all adjustments, which are of a normal recurring nature, necessary for a fair statement of the financial position, results of operations, cash flows and the change in equity for the periods presented. The condensed consolidated financial statements for the three and six months ended June 30, 2024, should be read in conjunction with the consolidated financial statements and notes thereto of West Pharmaceutical Services, Inc. and its majority-owned subsidiaries (which may be referred to as “West”, the “Company”, “we”, “us” or “our”) appearing in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”). The results of operations for any interim period are not necessarily indicative of results for the full year.
v3.24.2
New Accounting Standards
 6 Months Ended
Jun. 30, 2024
Accounting Standards Update and Change in Accounting Principle [Abstract]  
New Accounting Standards New Accounting Standards
Standards Issued Not Yet Adopted

In November 2023, the Financial Accounting Standards Board ("FASB") issued guidance that seeks to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendment enhances interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. This guidance is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024. We are currently evaluating the impact of this guidance on our financial statements and disclosures. The Company does not expect the adoption to have a material impact on the consolidated financial statements and disclosures.
In December 2023, the FASB issued guidance that seeks to enhance income tax disclosures to provide information to better assess how an entity's operations and related tax risks affect its tax rate and prospects for future cash flows. Within the income tax rate reconciliation, the amendment requires disclosure of additional categories and greater detail about individual reconciling items over a specified threshold. It also requires information pertaining to taxes paid to be disaggregated for federal, state, and foreign taxes and further disaggregated for specific jurisdictions over a specified threshold. This guidance is effective for fiscal years beginning after December 15, 2024. We are currently evaluating the impact of this guidance on our financial statements and disclosures, but we do not expect the adoption to have a material impact on the consolidated financial statements other than the expanded footnote disclosure.
v3.24.2
Revenue
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Our revenue results from the sale of goods or services and reflects the consideration to which we expect to be entitled in exchange for those goods or services. We record revenue based on a five-step model, in accordance with Accounting Standards Codification (“ASC”) 606. Following the identification of a contract with a customer, we identify the performance obligations (goods or services) in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize the revenue when (or as) we satisfy the performance obligations by transferring the promised goods or services to our customers. A good or service is transferred when (or as) the customer obtains control of that good or service.
The following table presents the approximate percentage of our net sales by market group:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Biologics
36 %
37 %
37 %
36 %
Generics
 18 %
20 %
18 %
20 %
Pharma
26 %
25 %
25 %
26 %
Contract-Manufactured Products
20 %
18 %
20 %
18 %
100 %
100 %
100 %
100 %

The following table presents the approximate percentage of our net sales by product category:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
High-Value Product Components
46 %
49 %
46 %
50 %
High-Value Product Delivery Devices
11 %
12 %
11 %
10 %
Standard Packaging
23 %
21 %
23 %
22 %
Contract-Manufactured Products
20 %
18 %
20 %
18 %
100 %
100 %
100 %
100 %

Due to the Company's reassessment of product categories, beginning in the second quarter of 2023 certain product types have been moved from High-Value Product Components to High-Value Product Delivery Devices. No adjustments were made to the product categorization prior to the second quarter of 2023.

The following table presents the approximate percentage of our net sales by geographic location:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Americas
43 %
44 %
43 %
44 %
Europe, Middle East, Africa
48 %
46 %
48 %
47 %
Asia Pacific
9 %
10 %
9 %
9 %
100 %
100 %
100 %
100 %

Contract Assets and Liabilities

The following table summarizes our contract assets and liabilities:
($ in millions)
Contract assets, December 31, 2023
$21.5 
Contract assets, June 30, 2024
22.6 
Change in contract assets - increase (decrease) $1.1 
Deferred income, December 31, 2023
$(53.9)
Deferred income, June 30, 2024
(52.2)
Change in deferred income - decrease (increase)$1.7 
Contract assets are included within other current assets and deferred income is included within other current liabilities and other long-term liabilities. During the six months ended June 30, 2024, $24.2 million of revenue was recognized that was included in deferred income at the beginning of the year.

The majority of the performance obligations within our contracts are satisfied within one year or less. Performance obligations satisfied beyond one year are not material as of June 30, 2024.
v3.24.2
Net Income Per Share
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Net Income Per Share Net Income Per Share
The following table reconciles the shares used in the calculation of basic net income per share to those used for diluted net income per share:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in millions)2024202320242023
Net income$111.3 $155.1 $226.6 $295.1 
Weighted average common shares outstanding73.0 74.3 73.3 74.4 
Dilutive effect of equity awards, based on the treasury stock method
0.7 1.1 0.7 1.1 
Weighted average shares assuming dilution73.7 75.4 74.0 75.5 

During the three months ended June 30, 2024 and 2023, there were 0.3 million and 0.1 million shares, respectively, from stock-based compensation plans not included in the computation of diluted net income per share because their impact was antidilutive. There were 0.3 million and 0.1 million antidilutive shares outstanding during the six months ended June 30, 2024 and 2023, respectively.

In February 2023, the Board of Directors approved a share repurchase program under which we may repurchase up to $1.0 billion in shares of common stock. The share repurchase program does not have an expiration date under which we may repurchase common stock on the open market or in privately-negotiated transactions. The number of shares to be repurchased and the timing of such transactions will depend on a variety of factors, including market conditions.

During the three months ended June 30, 2024, we purchased 509,336 shares of our common stock under the program at a cost of $187.1 million, or an average price of $367.48 per share. During the six months ended June 30, 2024, we purchased 1,239,015 shares of our common stock under the program at a cost of $454.1 million, or an average price of $366.53 per share.
During the three months ended June 30, 2023, we purchased 492,710 shares of our common stock under the program at a cost of $173.4 million, or an average price of $351.82 per share. During the six months ended June 30, 2023, we purchased 676,070 shares of our common stock under the program at a cost of $233.5 million, or an average price of $345.33 per share.
v3.24.2
Inventories
 6 Months Ended
Jun. 30, 2024
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories are valued at the lower of cost (on a first-in, first-out basis) or net realizable value. Inventory balances were as follows:
($ in millions)June 30,
2024		December 31,
2023
Raw materials$173.7 $172.3 
Work in process81.1 87.3 
Finished goods164.4 175.1 
 $419.2 $434.7 
v3.24.2
Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Leases Leases
A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The definition of a lease embodies two conditions: 1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property, plant, and equipment); and 2) the customer has the right to control the use of the identified asset. Lease payments included in the measurement of the lease right-of-use assets and lease liabilities are comprised of fixed payments (including in-substance fixed payments), variable payments that depend on an index or rate, and the exercise price of a lessee option to purchase the underlying asset if the lessee is reasonably certain to exercise.

The components of lease expense were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Operating lease cost$6.1 $4.8 $11.7 $10.7 
Finance lease - amortization of right-of-use (ROU) assets0.3 — 0.3 — 
Short-term lease cost0.6 1.2 1.1 2.5 
Variable lease cost1.9 1.3 3.8 3.0 
Total lease cost$8.9 $7.3 $16.9 $16.2 

The following table summarizes the finance lease amounts in the Consolidated Balance Sheets:

Finance Leases
($ in millions)Balance Sheet ClassificationJune 30, 2024
ROU assets, netOther noncurrent assets$31.0 
Lease liabilities (current)Other current liabilities$0.9 
Lease liabilities (noncurrent)Other long-term liabilities$2.4 
Supplemental cash flow information related to leases were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$15.0 $5.0 $20.3 $9.9 
Financing cash flows from finance leases$22.9 $— $22.9 $— 
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases$29.9 $2.9 $34.1 $3.5 
Finance Leases$24.3 $— $24.3 $— 

As of June 30, 2024 and December 31, 2023, the weighted average remaining lease term for operating leases was 8.6 years and 9.8 years, respectively. As of June 30, 2024, the weighted average remaining lease term for finance leases was 7.6 years. As of December 31, 2023, finance leases were not material.

As of June 30, 2024 and December 31, 2023, the weighted average discount rate for operating leases was 3.96% and 3.55%, respectively. As of June 30, 2024, the weighted average discount rate for finance leases was 4.94%. As of December 31, 2023, finance leases were not material.
Maturities of operating lease liabilities were as follows:
($ in millions)June 30,December 31,
Year20242023
2024 (remaining period as of)$12.1 $20.9 
202522.7 18.7 
202619.8 15.7 
202715.3 11.2 
202813.8 9.5 
Thereafter36.2 42.1 
119.9 118.1 
Less: imputed lease interest(15.0)(15.9)
Total lease liabilities$104.9 $102.2 

Maturities of finance lease liabilities were as follows:
($ in millions)June 30,
Year2024
2024 (remaining period as of)$0.4 
20250.9 
20260.9 
20270.8 
20280.5 
Thereafter0.1 
3.6 
Less: imputed lease interest(0.3)
Total lease liabilities$3.3 

As of December 31, 2023, finance leases were not material.
Leases Leases
A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The definition of a lease embodies two conditions: 1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property, plant, and equipment); and 2) the customer has the right to control the use of the identified asset. Lease payments included in the measurement of the lease right-of-use assets and lease liabilities are comprised of fixed payments (including in-substance fixed payments), variable payments that depend on an index or rate, and the exercise price of a lessee option to purchase the underlying asset if the lessee is reasonably certain to exercise.

The components of lease expense were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Operating lease cost$6.1 $4.8 $11.7 $10.7 
Finance lease - amortization of right-of-use (ROU) assets0.3 — 0.3 — 
Short-term lease cost0.6 1.2 1.1 2.5 
Variable lease cost1.9 1.3 3.8 3.0 
Total lease cost$8.9 $7.3 $16.9 $16.2 

The following table summarizes the finance lease amounts in the Consolidated Balance Sheets:

Finance Leases
($ in millions)Balance Sheet ClassificationJune 30, 2024
ROU assets, netOther noncurrent assets$31.0 
Lease liabilities (current)Other current liabilities$0.9 
Lease liabilities (noncurrent)Other long-term liabilities$2.4 
Supplemental cash flow information related to leases were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$15.0 $5.0 $20.3 $9.9 
Financing cash flows from finance leases$22.9 $— $22.9 $— 
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases$29.9 $2.9 $34.1 $3.5 
Finance Leases$24.3 $— $24.3 $— 

As of June 30, 2024 and December 31, 2023, the weighted average remaining lease term for operating leases was 8.6 years and 9.8 years, respectively. As of June 30, 2024, the weighted average remaining lease term for finance leases was 7.6 years. As of December 31, 2023, finance leases were not material.

As of June 30, 2024 and December 31, 2023, the weighted average discount rate for operating leases was 3.96% and 3.55%, respectively. As of June 30, 2024, the weighted average discount rate for finance leases was 4.94%. As of December 31, 2023, finance leases were not material.
Maturities of operating lease liabilities were as follows:
($ in millions)June 30,December 31,
Year20242023
2024 (remaining period as of)$12.1 $20.9 
202522.7 18.7 
202619.8 15.7 
202715.3 11.2 
202813.8 9.5 
Thereafter36.2 42.1 
119.9 118.1 
Less: imputed lease interest(15.0)(15.9)
Total lease liabilities$104.9 $102.2 

Maturities of finance lease liabilities were as follows:
($ in millions)June 30,
Year2024
2024 (remaining period as of)$0.4 
20250.9 
20260.9 
20270.8 
20280.5 
Thereafter0.1 
3.6 
Less: imputed lease interest(0.3)
Total lease liabilities$3.3 

As of December 31, 2023, finance leases were not material.
v3.24.2
Affiliated Companies
 6 Months Ended
Jun. 30, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Affiliated Companies Affiliated Companies
At June 30, 2024 and December 31, 2023, the aggregate carrying amount of our investment in affiliated companies that are accounted for under the equity method was $191.0 million and $203.2 million, respectively, and the aggregate carrying amount of our investment in affiliated companies that are not accounted for under the equity method was $7.2 million and $6.8 million, respectively. We have elected to record these investments, for which fair value was not readily determinable, at cost, less impairment, adjusted for subsequent observable price changes. We test these investments for impairment whenever circumstances indicate that the carrying value of the investments may not be recoverable.

Our purchases from, and royalty payments made to, affiliates totaled $24.9 million and $53.5 million, respectively, for the three and six months ended June 30, 2024, as compared to $39.9 million and $84.1 million, respectively, for the same period in 2023. As of June 30, 2024 and December 31, 2023, the payable balance due to affiliates was $20.4 million and $25.9 million, respectively. The majority of these transactions related to a distributorship agreement with Daikyo Seiko, Ltd. ("Daikyo") that allows us to purchase and re-sell Daikyo products.

Sales to affiliates were $4.0 million and $7.2 million, respectively, for the three and six months ended June 30, 2024, as compared to $2.7 million and $6.0 million, respectively, for the same periods in 2023. As of June 30, 2024 and December 31, 2023, the receivable balance due from affiliates was $2.4 million and $1.6 million, respectively.
v3.24.2
Debt
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Debt Debt
The following table summarizes our long-term debt obligations, net of unamortized debt issuance costs and current maturities. The interest rates shown in parentheses are as of June 30, 2024.
($ in millions)June 30,
2024		December 31,
2023
Term Loan, due December 31, 2024 (8.50%)
$79.9 $81.0 
Series B notes, due July 5, 2024 (3.82%)
53.0 53.0 
Series C notes, due July 5, 2027 (4.02%)
73.0 73.0 
205.9 207.0 
Less: unamortized debt issuance costs0.1 0.2 
Total debt205.8 206.8 
Less: current portion of long-term debt132.9 134.0 
Long-term debt, net$72.9 $72.8 

Credit Facility

At June 30, 2024, the borrowing capacity available under our $500.0 million multi-currency revolving credit facility (the “Credit Facility”), including outstanding letters of credit of $2.4 million, was $497.6 million.

Term Loan

At June 30, 2024, we had $79.9 million in borrowings under the Term Loan, of which $79.9 million was classified as current. Please refer to Note 9, Derivative Financial Instruments, for a discussion of the foreign currency hedge associated with the Term Loan.

Pursuant to the financial covenants in our debt agreements, we are required to maintain established interest coverage ratios and to not exceed established leverage ratios. In addition, the agreements contain other customary covenants, none of which we consider restrictive to our operations. At June 30, 2024, we were in compliance with all of our debt covenants.
v3.24.2
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Our ongoing business operations expose us to various risks, such as fluctuating interest rates, foreign currency exchange rates and increasing commodity prices. To manage these market risks, we periodically enter into derivative financial instruments, such as interest rate swaps, options and foreign exchange contracts for periods consistent with, and for notional amounts equal to or less than, the related underlying exposures. We do not purchase or hold any derivative financial instruments for investment or trading purposes. All derivatives are recorded in our condensed consolidated balance sheet at fair value.
Foreign Exchange Rate Risk

We have entered into forward exchange contracts, designated as fair value hedges, to manage our exposure to fluctuating foreign exchange rates on cross-currency intercompany loans. As of both June 30, 2024 and December 31, 2023, the total amount of these forward exchange contracts was Singapore Dollar (“SGD”) 601.5 million and $13.4 million. We have also entered into forward exchange contracts, designated as fair value hedges, to manage our exposure to fluctuating foreign exchange rates on cross-currency intercompany demand notes which were executed at various times throughout 2023 and 2024. As of June 30, 2024, the total amount of these forward exchange contracts was Euro ("EUR") 290.2 million, SGD 98.1 million, $178.3 million, and EUR 23.5 million. As of December 31, 2023, the total amount of these forward exchange contracts was EUR 278.6 million and SGD 94.0 million.

In addition, we have entered into several foreign currency contracts, designated as cash flow hedges, for periods of up to eighteen months, intended to hedge the currency risk associated with a portion of our forecasted transactions denominated in foreign currencies. As of June 30, 2024, we had outstanding foreign currency contracts to purchase and sell certain pairs of currencies, as follows:

(in millions)Sell
CurrencyPurchaseUSDEURSGD
EUR30.5 33.4 — — 
Yen5,750.0 27.6 11.2 1.4 
SGD41.1 14.9 14.6 — 

In December 2019, we entered into a cross-currency swap for $90 million, which we designated as a hedge of our net investment in Daikyo. As of June 30, 2024, the notional amount of the cross-currency swap is ¥8.7 billion ($79.9 million) and the swap termination date is December 31, 2024. Under the cross-currency swap, we receive floating interest rate payments based on USD compounded Secured Overnight Financing Rate ("SOFR") plus a margin, in return for paying floating interest rate payments based on Japanese Yen (“Yen”) Tokyo Overnight Average Rate ("TONAR") plus a margin.

Additionally, we will periodically enter into forward exchange contracts to mitigate our exposure to fluctuating foreign exchange rates on assets and liabilities, other than the intercompany loans and demand notes referenced above, which are denominated in foreign currencies. The Company has elected not to designate these forward contracts in hedging relationships, and any change in the value of the contracts is recognized in income.

Commodity Price Risk

Many of our proprietary products are made from synthetic elastomers, which are derived from the petroleum refining process. We purchase the majority of our elastomers via long-term supply contracts, some of which contain clauses that provide for surcharges related to fluctuations in crude oil prices. The following economic hedges did not qualify for hedge accounting treatment since they did not meet the highly effective requirement at inception.

From November 2017 through June 2024, we purchased several series of call options for a total of 1,079,145 barrels of crude oil to mitigate our exposure to such oil-based surcharges and protect operating cash flows with regard to a portion of our forecasted elastomer purchases.
As of June 30, 2024, we had outstanding contracts to purchase 201,801 barrels of crude oil from June 2024 to December 2025, at a weighted-average strike price of $86.26 per barrel.

Effects of Derivative Instruments on Financial Position and Results of Operations

Please refer to Note 10, Fair Value Measurements, for the balance sheet location and fair values of our derivative instruments as of June 30, 2024 and December 31, 2023.

The following table summarizes the effects of derivative instruments designated as fair value hedges on the condensed consolidated statements of income:
Amount of Gain (Loss) Recognized in Income for theAmount of Gain (Loss) Recognized in Income for the
Three Months Ended
June 30,		Six Months Ended
June 30,		Location on Statement of Income
($ in millions)2024202320242023
Fair Value Hedges:
Hedged item (intercompany loan)
$2.9 $7.4 $10.4 $9.9 Other expense (income)
Derivative designated as hedging instrument
(2.9)(8.2)(10.4)(10.7)Other expense (income)
Amount excluded from effectiveness testing
(1.7)(0.1)(3.5)1.1 Other expense (income)
Total$(1.7)$(0.9)$(3.5)$0.3 

We recognize in earnings the initial value of forward point components for hedges of intercompany loans on a straight-line basis over the life of the fair value hedge. The value of forward point components for hedges of intercompany demand notes is recognized currently in earnings using a market approach. The expense recognized in earnings, pre-tax, for forward point components for the three and six months ended June 30, 2024 was $1.7 million and $3.5 million, respectively. The income recognized in earnings, pre-tax, for forward point components for the three and six months ended June 30, 2023 was $0.2 million and $1.4 million, respectively.
The following tables summarize the effects of derivative instruments designated as fair value, cash flow, and net investment hedges on other comprehensive income (“OCI”) and earnings, net of tax:
 Amount of Gain (Loss) Recognized in OCI for theAmount of (Gain) Loss Reclassified from Accumulated OCI into Income for theLocation of (Gain) Loss Reclassified from Accumulated OCI into Income
Three Months Ended
June 30,		Three Months Ended
June 30,
($ in millions)2024202320242023 
Fair Value Hedges
Foreign currency hedge contracts$0.5 $(2.2)$(0.7)$1.9 Other expense (income)
Total$0.5 $(2.2)$(0.7)$1.9 
Cash Flow Hedges:     
Foreign currency hedge contracts$— $(0.8)$(0.1)$0.4 Net sales
Foreign currency hedge contracts(3.7)(2.6)1.4 0.4 Cost of goods and services sold
Forward treasury locks— — — 0.1 Interest expense
Total$(3.7)$(3.4)$1.3 $0.9  
Net Investment Hedges:     
Cross-currency swap$3.8 $5.5 $— $— Other expense (income)
Total$3.8 $5.5 $— $—  
 Amount of Gain (Loss) Recognized in OCI for theAmount of (Gain) Loss Reclassified from Accumulated OCI into Income for theLocation of (Gain) Loss Reclassified from Accumulated OCI into Income
Six Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023 
Fair Value Hedges
Foreign currency hedge contracts$0.2 $(2.0)$(0.7)$1.9 Other expense (income)
Total$0.2 $(2.0)$(0.7)$1.9 
Cash Flow Hedges:     
Foreign currency hedge contracts$0.1 $(0.9)$(0.2)$1.1 Net sales
Foreign currency hedge contracts(6.6)(3.6)2.6 0.4 Cost of goods and services sold
Forward treasury locks— — 0.1 0.1 Interest expense
Total$(6.5)$(4.5)$2.5 $1.6  
Net Investment Hedges:     
Cross-currency swap$8.4 $7.2 $— $— Other expense (income)
Total$8.4 $7.2 $— $—  
Refer to the above table which summarizes the effects of derivative instruments designated as fair value hedges within the other expense (income) line in our condensed consolidated statements of income for the three and six months ended June 30, 2024 and June 30, 2023. The following table summarizes the effects of derivative instruments designated as cash flow and net investment hedges by line item in our condensed consolidated statements of income:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Net sales$(0.1)$0.4 $(0.2)$1.1 
Cost of goods and services sold1.4 0.4 2.6 0.4 
Interest expense— 0.1 0.1 0.1 

The following table summarizes the effects of derivative instruments not designated as hedges on the condensed consolidated statements of income:
Amount of Gain (Loss) Recognized in Income for theAmount of Gain (Loss) Recognized in Income for the
Three Months Ended
June 30,		Six Months Ended
June 30,		Location on Statement of Income
($ in millions)2024202320242023
Commodity call options$(0.2)$(0.4)$(0.1)$(1.0)Other expense (income)
Currency forwards0.1 (0.2)0.5 (0.2)Other expense (income)
Total$(0.1)$(0.6)$0.4 $(1.2)

For the three and six months ended June 30, 2024 and 2023, there was no material ineffectiveness related to our hedges.
v3.24.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The following fair value hierarchy classifies the inputs to valuation techniques used to measure fair value into one of three levels:

•Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.
•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
•Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.
The following tables present the assets and liabilities recorded at fair value on a recurring basis:
 Balance atBasis of Fair Value Measurements
($ in millions)June 30,
2024		Level 1Level 2Level 3
Assets:    
Deferred compensation assets$10.4 $10.4 $— $— 
Foreign currency contracts7.4 — 7.4 — 
Cross-currency swap25.7 — 25.7 — 
Commodity call options0.7 — 0.7 
 $44.2 $10.4 $33.8 $— 
Liabilities:    
Contingent consideration$3.8 $— $— $3.8 
Deferred compensation liabilities10.6 10.6 — — 
Foreign currency contracts14.7 — 14.7 — 
 $29.1 $10.6 $14.7 $3.8 

 Balance atBasis of Fair Value Measurements
($ in millions)December 31,
2023		Level 1Level 2Level 3
Assets:    
Deferred compensation assets$10.2 $10.2 $— $— 
Foreign currency contracts5.0 — 5.0 — 
Cross-currency swap18.4 — 18.4 — 
Commodity call options0.6 — 0.6 — 
 $34.2 $10.2 $24.0 $— 
Liabilities:    
Contingent consideration$3.6 $— $— $3.6 
Deferred compensation liabilities10.4 10.4 — — 
Foreign currency contracts2.2 — 2.2 — 
 $16.2 $10.4 $2.2 $3.6 

Deferred compensation assets are included within other noncurrent assets and are valued using a market approach based on quoted market prices in an active market. The fair value of our foreign currency contracts, included within other current and other noncurrent assets, as well as other current and other long-term liabilities as of June 30, 2024, is valued using an income approach based on quoted forward foreign exchange rates and spot rates at the reporting date. The fair value of the cross-currency swap, included within other current assets, is valued using a market approach. Please refer to Note 9, Derivative Financial Instruments, for further discussion of our derivatives. The fair value of our commodity call options, included within other current and other noncurrent assets, is valued using a market approach. The fair value of the contingent consideration liability, within current and long-term liabilities, related to the SmartDose® technology platform (the “SmartDose® contingent consideration”) was initially determined using a probability-weighted income approach, and is revalued at each reporting date or more frequently if circumstances dictate. Changes in the fair value of this obligation are recorded as income or expense within other expense (income) in our condensed consolidated statements of income. The fair value of deferred compensation liabilities is based on quoted prices of the underlying employees’ investment selections and is included within other long-term liabilities.
Other Financial Instruments

We believe that the carrying amounts of our cash and cash equivalents and accounts receivable approximate their fair values due to their near-term maturities.

The estimated fair value of short-term and long-term debt is based on quoted market prices for debt issuances with similar terms and maturities and is classified as Level 2 within the fair value hierarchy. At June 30, 2024, the estimated fair value of short-term and long-term debt was $203.0 million compared to a carrying amount of $205.8 million. At December 31, 2023, the estimated fair value of short-term and long-term debt was $204.4 million and the carrying amount was $206.8 million.
v3.24.2
Accumulated Other Comprehensive Loss
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss
The following table presents the changes in the components of accumulated other comprehensive income ("AOCI") (loss), net of tax, for the six months ended June 30, 2024:
($ in millions)DerivativesChange in equity affiliate investment AOCIDefined benefit
pension and other
postretirement plans		Foreign
currency
translation		Total
Balance, December 31, 2023$— $2.3 $(10.1)$(136.0)$(143.8)
Other comprehensive (loss) income before reclassifications(6.3)(0.2)— (68.0)(74.5)
Amounts reclassified out from accumulated other comprehensive (loss) income1.8 — (0.4)— 1.4 
Other comprehensive (loss) income, net of tax(4.5)(0.2)(0.4)(68.0)(73.1)
Balance, June 30, 2024$(4.5)$2.1 $(10.5)$(204.0)$(216.9)

The following table presents the changes in the components of accumulated other comprehensive income ("AOCI") (loss), net of tax, for the six months ended June 30, 2023:
($ in millions)DerivativesChange in equity affiliate investment AOCIDefined benefit
pension and other
postretirement plans		Foreign
currency
translation		Total
Balance, December 31, 2022$0.2 $1.6 $(9.4)$(175.4)$(183.0)
Other comprehensive (loss) income before reclassifications(6.5)(0.1)(0.5)4.0 (3.1)
Amounts reclassified out from accumulated other comprehensive (loss) income3.5 — (0.9)— 2.6 
Other comprehensive (loss) income, net of tax(3.0)(0.1)(1.4)4.0 (0.5)
Balance, June 30, 2023$(2.8)$1.5 $(10.8)$(171.4)$(183.5)
A summary of the reclassifications out from accumulated other comprehensive loss is presented in the following table:
($ in millions)Three Months Ended
June 30,		Six Months Ended
June 30,		Location on Statement of Income
Detail of components2024202320242023
(Losses) gains on derivatives:
Foreign currency contracts$0.1 $(0.6)$0.2 $(1.3)Net sales
Foreign currency contracts(1.8)(0.6)(3.4)(0.6)Cost of goods and services sold
Foreign currency contracts1.0 (2.8)1.0 (2.8)Other expense (income)
Forward treasury locks— — (0.1)(0.1)Interest expense
Total before tax(0.7)(4.0)(2.3)(4.8)
Tax benefit0.1 1.2 0.5 1.3 
Net of tax$(0.6)$(2.8)$(1.8)$(3.5)
Amortization of defined benefit pension and other postretirement plans:
Actuarial gains$0.2 $0.4 $0.5 $0.8 (a)
Other— 0.4 — 0.4 
Total before tax0.2 0.8 0.5 1.2 
Tax expense— (0.2)(0.1)(0.3)
Net of tax$0.2 $0.6 $0.4 $0.9 
Total reclassifications for the period, net of tax$(0.4)$(2.2)$(1.4)$(2.6)

(a) This component is included in the computation of net periodic benefit cost.
v3.24.2
Shareholders' Equity
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Shareholders' Equity Shareholders’ Equity
The following table presents the changes in shareholders’ equity for the six months ended June 30, 2024:
Common Shares IssuedCommon StockCapital in Excess of Par ValueNumber of Treasury SharesTreasury StockRetained EarningsAccumulated Other Comprehensive LossTotal
(in millions)
Balance, December 31, 202375.3 $18.8 $120.2 1.8 $(637.6)$3,523.4 $(143.8)$2,881.0 
Net income— — — — — 115.3 — 115.3 
Activity related to stock-based compensation— — (65.0)(0.2)79.4 — — 14.4 
Shares purchased under share repurchase program— — — 0.7 (267.0)— — (267.0)
Dividends declared ($0.20 per share)
— — — — — (14.6)— (14.6)
Other comprehensive loss, net of tax— — — — — — (48.5)(48.5)
Balance, March 31, 202475.3 $18.8 $55.2 2.3 $(825.2)$3,624.1 $(192.3)$2,680.6 
Net income— — — — — 111.3 — 111.3 
Activity related to stock-based compensation— — (21.7)(0.1)32.8 — — 11.1 
Shares purchased under share repurchase program— — — 0.5 (187.1)— — (187.1)
Dividends declared ($0.20 per share)
— — — — — (14.5)— (14.5)
Other comprehensive loss, net of tax— — — — — — (24.6)(24.6)
Balance, June 30, 202475.3 $18.8 $33.5 2.7 $(979.5)$3,720.9 $(216.9)$2,576.8 
The following table presents the changes in shareholders’ equity for the six months ended June 30, 2023:
Common Shares IssuedCommon StockCapital in Excess of Par ValueNumber of Treasury SharesTreasury StockRetained EarningsAccumulated Other Comprehensive LossTotal
(in millions)
Balance, December 31, 202275.3 $18.8 $232.2 1.2 $(370.9)$2,987.8 $(183.0)$2,684.9 
Net income— — — — — 140.0 — 140.0 
Activity related to stock-based compensation— — (50.8)(0.3)61.8 — — 11.0 
Shares purchased under share repurchase program— — — 0.2 (60.1)— — (60.1)
Dividends declared ($0.19 per share)
— — — — — (14.2)— (14.2)
Other comprehensive income, net of tax— — — — — — 14.6 14.6 
Balance, March 31, 202375.3 $18.8 $181.4 1.1 $(369.2)$3,113.6 $(168.4)$2,776.2 
Net income— — — — — 155.1 — 155.1 
Activity related to stock-based compensation— — (23.2)(0.2)41.2— — 18.0 
Shares purchased under share repurchase program— — — 0.5 (173.4)— — (173.4)
Dividends declared ($0.19 per share)
— — — — — (14.1)— (14.1)
Other comprehensive loss, net of tax— — — — — — (15.1)(15.1)
Balance, June 30, 202375.3 $18.8 $158.2 1.4 $(501.4)$3,254.6 $(183.5)$2,746.7 
v3.24.2
Stock-Based Compensation
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
The West Pharmaceutical Services, Inc. 2016 Omnibus Incentive Compensation Plan (the “2016 Plan”) provides for the granting of stock options, stock appreciation rights, restricted stock awards and performance awards to employees and non-employee directors. A committee of the Board of Directors determines the terms and conditions of awards to be granted. Vesting requirements vary by award. At June 30, 2024, there were 1,339,458 shares remaining in the 2016 Plan for future grants.

During the six months ended June 30, 2024, we granted 85,263 stock options at a weighted average exercise price of $350.28 per share based on the grant-date fair value of our stock to employees under the 2016 Plan. The weighted average grant date fair value of options granted was $134.93 per share as determined by the Black-Scholes option valuation model using the following weighted average assumptions: a risk-free interest rate of 4.3%; expected life of 6.0 years based on prior experience; stock volatility of 32.0% based on historical data; and a dividend yield of 0.3%. Stock option expense is recognized over the vesting period, net of forfeitures.

During the six months ended June 30, 2024, we granted 32,876 stock-settled performance share unit (“PSU”) awards at a weighted average grant-date fair value of $350.28 per share to eligible employees. These awards are earned based on the Company’s performance against pre-established targets, including annual growth rate of revenue and return on invested capital, over a specified performance period. Depending on the achievement of the targets, recipients of stock-settled PSU awards are entitled to receive a certain number of shares of common stock. Shares earned under PSU awards may vary from 0% to 200% of an employee’s targeted award. The fair value of stock-settled PSU awards is based on the market price of our stock at the grant date and is recognized as expense over the performance period, adjusted for estimated target outcomes and net of forfeitures.

During the six months ended June 30, 2024, we granted 7,019 stock-settled restricted share unit (“RSU”) awards at a weighted average grant-date fair value of $350.65 per share to eligible employees. These awards are earned over a specified performance period. The fair value of stock-settled RSU awards is based on the market price of our stock at the grant date and is recognized as expense over the vesting period, net of forfeitures.
Stock-based compensation expense was $4.3 million and $9.3 million for the three and six months ended June 30, 2024, respectively. For the three and six months ended June 30, 2023, stock-based compensation expense was $7.5 million and $16.0 million, respectively.
v3.24.2
Other Expense (Income)
 6 Months Ended
Jun. 30, 2024
Other Income and Expenses [Abstract]  
Other Expense (Income) Other Expense (Income)
Other expense (income) consists of:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Loss on disposal of plant$— $2.2 $— $11.6 
Foreign exchange transaction losses2.0 0.3 3.2 1.2 
Contingent consideration1.0 0.5 2.0 0.8 
Asset impairments0.3 1.5 0.9 3.4 
Restructuring and related charges— (0.8)— (0.8)
Other items— 0.3 0.3 0.7 
Total other expense (income)$3.3 $4.0 $6.4 $16.9 
Loss on Disposal of Plant

During the three and six months ended June 30, 2023, the Company recorded expense of $2.2 million and $11.6 million, respectively, within other expense (income), as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment. The transaction closed during the second quarter of 2023.

Contingent Consideration

Contingent consideration represents changes in the fair value of the SmartDose® contingent consideration. Please refer to Note 10, Fair Value Measurements, for additional details.

Restructuring and Related Charges

In December 2022, the Company approved a restructuring plan to adjust our operating cost base to better respond to the macroeconomic factors influencing our business. These changes are expected to be implemented over a period of up to twenty-four months from the date of approval. The plan is expected to require restructuring and related charges of approximately $22 million to $24 million, with annualized savings in the range of $22 million to $24 million.

The following table presents activity related to our restructuring obligations related to our 2022 restructuring plan:

($ in millions)Severance
and benefits		Other chargesTotal
Balance, December 31, 2023$3.0 $— $3.0 
(Credits) Charges— — — 
Cash payments(0.3)— (0.3)
Balance, June 30, 2024$2.7 $— $2.7 
v3.24.2
Income Taxes
 6 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The tax provision for interim periods is determined using the estimated annual effective consolidated tax rate, based on the current estimate of full-year earnings before taxes, adjusted for the impact of discrete quarterly items.

The provision for income taxes was $21.9 million and $34.8 million for the three months ended June 30, 2024 and 2023, respectively, and the effective tax rate was 17.0% and 18.8%, respectively. The decrease in the effective tax rate is primarily due to a shift in the forecasted geographic earnings mix, offset by a decrease in the tax benefit related to stock-based compensation for three months ended June 30, 2024 as compared to the same period in 2023.

The provision for income taxes was $38.3 million and $58.4 million for the six months ended June 30, 2024 and 2023, respectively, and the effective tax rate was 15.0% and 17.0%, respectively. The decrease in the effective tax rate is primarily due to a shift in the forecasted geographic earnings mix, offset by a decrease in the tax benefit related to stock-based compensation for six months ended June 30, 2024, as compared to the same period in 2023.

The Company continues to address the change in tax laws enacted pursuant to the Organization for Economic Cooperation and Development (OECD)’s 15% global minimum tax initiative (Pillar 2). The 2024 forecasted impact of Pillar 2 is not expected to be material to the Company.
v3.24.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
From time to time, we are involved in product liability matters and other legal proceedings and claims generally incidental to our normal business activities. We accrue for loss contingencies when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. While the outcome of current proceedings cannot be accurately predicted, we believe their ultimate resolution should not have a material adverse effect on our business, financial condition, results of operations or liquidity.

There have been no significant changes to commitments and contingencies since December 31, 2023.
v3.24.2
Segment Information
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
Our business operations are organized into two reportable segments, Proprietary Products and Contract-Manufactured Products. Our Proprietary Products reportable segment offers proprietary packaging, containment solutions and drug delivery products, along with analytical lab services and other integrated services and solutions, primarily to biologic, generic and pharmaceutical drug customers. Our Contract-Manufactured Products reportable segment serves as a fully integrated business, focused on the design, manufacture, and automated assembly of complex devices, primarily for pharmaceutical, diagnostic, and medical device customers.

The Chief Operating Decision Maker ("CODM") evaluates the performance of our segments based upon, among other things, segment net sales and operating profit. Segment operating profit excludes general corporate costs, which include executive and director compensation, stock-based compensation, certain pension and other retirement benefit costs, and other corporate facilities and administrative expenses not allocated to the segments. Also excluded are items that the CODM considers not representative of ongoing operations. Such items are referred to as other unallocated items and generally include restructuring and related charges, certain asset impairments and other specifically-identified income or expense items. The segment operating profit metric is what the CODM uses in evaluating our results of operations and the financial measure that provides a valuable insight into our overall performance and financial position.

The following table presents information about our reportable segments, reconciled to consolidated totals:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Net sales:    
Proprietary Products$559.7 $618.0 $1,119.2 $1,201.1 
Contract-Manufactured Products142.4 135.8 278.3 269.3 
Consolidated net sales$702.1 $753.8 $1,397.5 $1,470.4 
The following table provides summarized financial information for our segments:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Operating profit (loss):
Proprietary Products$131.0 $194.2 $257.3 $364.9 
Contract-Manufactured Products17.2 14.9 34.3 32.3 
Total business segment operating profit$148.2 $209.1 $291.6 $397.2 
Corporate and Unallocated
Stock-based compensation expense$(4.3)$(7.5)$(9.3)$(16.0)
Corporate general costs (1)
(17.5)(16.6)(32.9)(31.3)
Unallocated Items:
Amortization of acquisition-related intangible assets (2)
(0.2)(0.2)(0.4)(0.4)
Loss on disposal of plant (3)
— (2.2)— (11.6)
Restructuring and other charges (4)
— (0.1)— (0.1)
Total Corporate and Unallocated(22.0)(26.6)(42.6)(59.4)
Total consolidated operating profit$126.2 $182.5 $249.0 $337.8 
Interest (income) expense, net and other nonoperating (income) expense, net(2.5)(2.4)(7.1)(5.0)
Income before income taxes and equity in net income of affiliated companies$128.7 $184.9 $256.1 $342.8 

(1) Corporate general costs includes executive and director compensation, certain pension and other retirement benefit costs, and other corporate facilities and administrative expenses not allocated to the segments.

(2) During the three and six months ended June 30, 2024, the Company recorded $0.2 million and $0.4 million, respectively, of amortization expense within operating profit associated with an intangible asset acquired during the second quarter of 2020. During the three and six months ended June 30, 2023, the Company recorded $0.2 million and $0.4 million, respectively, of amortization expense within operating profit associated with an intangible asset acquired during the second quarter of 2020.

(3) During the three and six months ended June 30, 2023, the Company recorded expense of $2.2 million and $11.6 million, respectively, within other expense (income), as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment. The transaction closed during the second quarter of 2023.

(4) Restructuring and other charges of $0.1 million for both the three and six months ended June 30, 2023 represents the net impact of an inventory write down of $0.9 million within cost of goods and services sold and a $0.8 million benefit within other expense (income) for revised severance estimates in connection with its 2022 restructuring plan.

Please refer to Note 14, Other Expense (Income), for further discussion of certain unallocated items referenced above.
v3.24.2
Subsequent Events
 6 Months Ended
Jun. 30, 2024
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
On July 2, 2024, the Company entered into the Third Amendment to the Credit Facility Agreement, which amended the Existing Credit Facility Agreement. Among other changes to the existing credit agreement, the Third Amendment established an incremental term loan in the stated principal amount of $130.0 million (the “New Term Loan”), which was fully drawn at closing and matures on July 2, 2027. The entire stated principal amount of the New Term Loan is due at maturity and there is no scheduled amortization prior to such date. Together with cash on hand, proceeds from the New Term Loan were used to repay an outstanding term loan under the Existing Credit Facility Agreement in the principal amount of $79.9 million and to repay an aggregate principal amount of $53.0 million of the Company’s 3.82% Series B Senior Notes due July 5, 2024 issued under that certain Note Purchase Agreement dated as of July 5, 2012.
v3.24.2
Basis of Presentation (Policies)
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation: The condensed consolidated financial statements included in this report are unaudited and have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting and U.S. Securities and Exchange Commission (“SEC”) regulations. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, these financial statements include all adjustments, which are of a normal recurring nature, necessary for a fair statement of the financial position, results of operations, cash flows and the change in equity for the periods presented. The condensed consolidated financial statements for the three and six months ended June 30, 2024, should be read in conjunction with the consolidated financial statements and notes thereto of West Pharmaceutical Services, Inc. and its majority-owned subsidiaries (which may be referred to as “West”, the “Company”, “we”, “us” or “our”) appearing in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”). The results of operations for any interim period are not necessarily indicative of results for the full year.
Standards Issued Not Yet Adopted
Standards Issued Not Yet Adopted

In November 2023, the Financial Accounting Standards Board ("FASB") issued guidance that seeks to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendment enhances interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. This guidance is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024. We are currently evaluating the impact of this guidance on our financial statements and disclosures. The Company does not expect the adoption to have a material impact on the consolidated financial statements and disclosures.
In December 2023, the FASB issued guidance that seeks to enhance income tax disclosures to provide information to better assess how an entity's operations and related tax risks affect its tax rate and prospects for future cash flows. Within the income tax rate reconciliation, the amendment requires disclosure of additional categories and greater detail about individual reconciling items over a specified threshold. It also requires information pertaining to taxes paid to be disaggregated for federal, state, and foreign taxes and further disaggregated for specific jurisdictions over a specified threshold. This guidance is effective for fiscal years beginning after December 15, 2024. We are currently evaluating the impact of this guidance on our financial statements and disclosures, but we do not expect the adoption to have a material impact on the consolidated financial statements other than the expanded footnote disclosure.
Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The following fair value hierarchy classifies the inputs to valuation techniques used to measure fair value into one of three levels:

•Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.
•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
•Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.
v3.24.2
Revenue (Tables)
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table presents the approximate percentage of our net sales by market group:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Biologics
36 %
37 %
37 %
36 %
Generics
 18 %
20 %
18 %
20 %
Pharma
26 %
25 %
25 %
26 %
Contract-Manufactured Products
20 %
18 %
20 %
18 %
100 %
100 %
100 %
100 %

The following table presents the approximate percentage of our net sales by product category:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
High-Value Product Components
46 %
49 %
46 %
50 %
High-Value Product Delivery Devices
11 %
12 %
11 %
10 %
Standard Packaging
23 %
21 %
23 %
22 %
Contract-Manufactured Products
20 %
18 %
20 %
18 %
100 %
100 %
100 %
100 %
The following table presents the approximate percentage of our net sales by geographic location:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Americas
43 %
44 %
43 %
44 %
Europe, Middle East, Africa
48 %
46 %
48 %
47 %
Asia Pacific
9 %
10 %
9 %
9 %
100 %
100 %
100 %
100 %
Schedule of Change in Contract with Customer, Asset and Liability
The following table summarizes our contract assets and liabilities:
($ in millions)
Contract assets, December 31, 2023
$21.5 
Contract assets, June 30, 2024
22.6 
Change in contract assets - increase (decrease) $1.1 
Deferred income, December 31, 2023
$(53.9)
Deferred income, June 30, 2024
(52.2)
Change in deferred income - decrease (increase)$1.7 
v3.24.2
Net Income Per Share (Tables)
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Schedule of Reconciliation of Basic to Diluted Net Income Per Share
The following table reconciles the shares used in the calculation of basic net income per share to those used for diluted net income per share:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in millions)2024202320242023
Net income$111.3 $155.1 $226.6 $295.1 
Weighted average common shares outstanding73.0 74.3 73.3 74.4 
Dilutive effect of equity awards, based on the treasury stock method
0.7 1.1 0.7 1.1 
Weighted average shares assuming dilution73.7 75.4 74.0 75.5 
v3.24.2
Inventories (Tables)
 6 Months Ended
Jun. 30, 2024
Inventory Disclosure [Abstract]  
Schedule of Inventories
Inventories are valued at the lower of cost (on a first-in, first-out basis) or net realizable value. Inventory balances were as follows:
($ in millions)June 30,
2024		December 31,
2023
Raw materials$173.7 $172.3 
Work in process81.1 87.3 
Finished goods164.4 175.1 
 $419.2 $434.7 
v3.24.2
Leases (Tables)
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Schedule of Lease, Cost
The components of lease expense were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Operating lease cost$6.1 $4.8 $11.7 $10.7 
Finance lease - amortization of right-of-use (ROU) assets0.3 — 0.3 — 
Short-term lease cost0.6 1.2 1.1 2.5 
Variable lease cost1.9 1.3 3.8 3.0 
Total lease cost$8.9 $7.3 $16.9 $16.2 
Supplemental cash flow information related to leases were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$15.0 $5.0 $20.3 $9.9 
Financing cash flows from finance leases$22.9 $— $22.9 $— 
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases$29.9 $2.9 $34.1 $3.5 
Finance Leases$24.3 $— $24.3 $— 
Schedule Of Assets And Liabilities, Lessee
The following table summarizes the finance lease amounts in the Consolidated Balance Sheets:

Finance Leases
($ in millions)Balance Sheet ClassificationJune 30, 2024
ROU assets, netOther noncurrent assets$31.0 
Lease liabilities (current)Other current liabilities$0.9 
Lease liabilities (noncurrent)Other long-term liabilities$2.4 
Schedule of Lessee, Operating Lease, Liability, Maturity
Maturities of operating lease liabilities were as follows:
($ in millions)June 30,December 31,
Year20242023
2024 (remaining period as of)$12.1 $20.9 
202522.7 18.7 
202619.8 15.7 
202715.3 11.2 
202813.8 9.5 
Thereafter36.2 42.1 
119.9 118.1 
Less: imputed lease interest(15.0)(15.9)
Total lease liabilities$104.9 $102.2 
Schedule of Lessee, Finance Lease, Liability, Maturity
Maturities of finance lease liabilities were as follows:
($ in millions)June 30,
Year2024
2024 (remaining period as of)$0.4 
20250.9 
20260.9 
20270.8 
20280.5 
Thereafter0.1 
3.6 
Less: imputed lease interest(0.3)
Total lease liabilities$3.3 
v3.24.2
Debt (Tables)
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Obligations, Net of Current Maturities
The following table summarizes our long-term debt obligations, net of unamortized debt issuance costs and current maturities. The interest rates shown in parentheses are as of June 30, 2024.
($ in millions)June 30,
2024		December 31,
2023
Term Loan, due December 31, 2024 (8.50%)
$79.9 $81.0 
Series B notes, due July 5, 2024 (3.82%)
53.0 53.0 
Series C notes, due July 5, 2027 (4.02%)
73.0 73.0 
205.9 207.0 
Less: unamortized debt issuance costs0.1 0.2 
Total debt205.8 206.8 
Less: current portion of long-term debt132.9 134.0 
Long-term debt, net$72.9 $72.8 
v3.24.2
Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Foreign Currency Contracts As of June 30, 2024, we had outstanding foreign currency contracts to purchase and sell certain pairs of currencies, as follows:
(in millions)Sell
CurrencyPurchaseUSDEURSGD
EUR30.5 33.4 — — 
Yen5,750.0 27.6 11.2 1.4 
SGD41.1 14.9 14.6 — 
Schedule of Effects of Derivative Instruments on Other Comprehensive Income ('OCI') and Earnings
The following table summarizes the effects of derivative instruments designated as fair value hedges on the condensed consolidated statements of income:
Amount of Gain (Loss) Recognized in Income for theAmount of Gain (Loss) Recognized in Income for the
Three Months Ended
June 30,		Six Months Ended
June 30,		Location on Statement of Income
($ in millions)2024202320242023
Fair Value Hedges:
Hedged item (intercompany loan)
$2.9 $7.4 $10.4 $9.9 Other expense (income)
Derivative designated as hedging instrument
(2.9)(8.2)(10.4)(10.7)Other expense (income)
Amount excluded from effectiveness testing
(1.7)(0.1)(3.5)1.1 Other expense (income)
Total$(1.7)$(0.9)$(3.5)$0.3 
The following tables summarize the effects of derivative instruments designated as fair value, cash flow, and net investment hedges on other comprehensive income (“OCI”) and earnings, net of tax:
 Amount of Gain (Loss) Recognized in OCI for theAmount of (Gain) Loss Reclassified from Accumulated OCI into Income for theLocation of (Gain) Loss Reclassified from Accumulated OCI into Income
Three Months Ended
June 30,		Three Months Ended
June 30,
($ in millions)2024202320242023 
Fair Value Hedges
Foreign currency hedge contracts$0.5 $(2.2)$(0.7)$1.9 Other expense (income)
Total$0.5 $(2.2)$(0.7)$1.9 
Cash Flow Hedges:     
Foreign currency hedge contracts$— $(0.8)$(0.1)$0.4 Net sales
Foreign currency hedge contracts(3.7)(2.6)1.4 0.4 Cost of goods and services sold
Forward treasury locks— — — 0.1 Interest expense
Total$(3.7)$(3.4)$1.3 $0.9  
Net Investment Hedges:     
Cross-currency swap$3.8 $5.5 $— $— Other expense (income)
Total$3.8 $5.5 $— $—  
 Amount of Gain (Loss) Recognized in OCI for theAmount of (Gain) Loss Reclassified from Accumulated OCI into Income for theLocation of (Gain) Loss Reclassified from Accumulated OCI into Income
Six Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023 
Fair Value Hedges
Foreign currency hedge contracts$0.2 $(2.0)$(0.7)$1.9 Other expense (income)
Total$0.2 $(2.0)$(0.7)$1.9 
Cash Flow Hedges:     
Foreign currency hedge contracts$0.1 $(0.9)$(0.2)$1.1 Net sales
Foreign currency hedge contracts(6.6)(3.6)2.6 0.4 Cost of goods and services sold
Forward treasury locks— — 0.1 0.1 Interest expense
Total$(6.5)$(4.5)$2.5 $1.6  
Net Investment Hedges:     
Cross-currency swap$8.4 $7.2 $— $— Other expense (income)
Total$8.4 $7.2 $— $—  
Refer to the above table which summarizes the effects of derivative instruments designated as fair value hedges within the other expense (income) line in our condensed consolidated statements of income for the three and six months ended June 30, 2024 and June 30, 2023. The following table summarizes the effects of derivative instruments designated as cash flow and net investment hedges by line item in our condensed consolidated statements of income:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Net sales$(0.1)$0.4 $(0.2)$1.1 
Cost of goods and services sold1.4 0.4 2.6 0.4 
Interest expense— 0.1 0.1 0.1 
Schedule of Derivatives Not Designated as Hedging Instruments
The following table summarizes the effects of derivative instruments not designated as hedges on the condensed consolidated statements of income:
Amount of Gain (Loss) Recognized in Income for theAmount of Gain (Loss) Recognized in Income for the
Three Months Ended
June 30,		Six Months Ended
June 30,		Location on Statement of Income
($ in millions)2024202320242023
Commodity call options$(0.2)$(0.4)$(0.1)$(1.0)Other expense (income)
Currency forwards0.1 (0.2)0.5 (0.2)Other expense (income)
Total$(0.1)$(0.6)$0.4 $(1.2)
v3.24.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value
The following tables present the assets and liabilities recorded at fair value on a recurring basis:
 Balance atBasis of Fair Value Measurements
($ in millions)June 30,
2024		Level 1Level 2Level 3
Assets:    
Deferred compensation assets$10.4 $10.4 $— $— 
Foreign currency contracts7.4 — 7.4 — 
Cross-currency swap25.7 — 25.7 — 
Commodity call options0.7 — 0.7 
 $44.2 $10.4 $33.8 $— 
Liabilities:    
Contingent consideration$3.8 $— $— $3.8 
Deferred compensation liabilities10.6 10.6 — — 
Foreign currency contracts14.7 — 14.7 — 
 $29.1 $10.6 $14.7 $3.8 

 Balance atBasis of Fair Value Measurements
($ in millions)December 31,
2023		Level 1Level 2Level 3
Assets:    
Deferred compensation assets$10.2 $10.2 $— $— 
Foreign currency contracts5.0 — 5.0 — 
Cross-currency swap18.4 — 18.4 — 
Commodity call options0.6 — 0.6 — 
 $34.2 $10.2 $24.0 $— 
Liabilities:    
Contingent consideration$3.6 $— $— $3.6 
Deferred compensation liabilities10.4 10.4 — — 
Foreign currency contracts2.2 — 2.2 — 
 $16.2 $10.4 $2.2 $3.6 
v3.24.2
Accumulated Other Comprehensive Loss (Tables)
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Schedule of Components of Accumulated Other Comprehensive Loss
The following table presents the changes in the components of accumulated other comprehensive income ("AOCI") (loss), net of tax, for the six months ended June 30, 2024:
($ in millions)DerivativesChange in equity affiliate investment AOCIDefined benefit
pension and other
postretirement plans		Foreign
currency
translation		Total
Balance, December 31, 2023$— $2.3 $(10.1)$(136.0)$(143.8)
Other comprehensive (loss) income before reclassifications(6.3)(0.2)— (68.0)(74.5)
Amounts reclassified out from accumulated other comprehensive (loss) income1.8 — (0.4)— 1.4 
Other comprehensive (loss) income, net of tax(4.5)(0.2)(0.4)(68.0)(73.1)
Balance, June 30, 2024$(4.5)$2.1 $(10.5)$(204.0)$(216.9)

The following table presents the changes in the components of accumulated other comprehensive income ("AOCI") (loss), net of tax, for the six months ended June 30, 2023:
($ in millions)DerivativesChange in equity affiliate investment AOCIDefined benefit
pension and other
postretirement plans		Foreign
currency
translation		Total
Balance, December 31, 2022$0.2 $1.6 $(9.4)$(175.4)$(183.0)
Other comprehensive (loss) income before reclassifications(6.5)(0.1)(0.5)4.0 (3.1)
Amounts reclassified out from accumulated other comprehensive (loss) income3.5 — (0.9)— 2.6 
Other comprehensive (loss) income, net of tax(3.0)(0.1)(1.4)4.0 (0.5)
Balance, June 30, 2023$(2.8)$1.5 $(10.8)$(171.4)$(183.5)
Schedule of Reclassification out of Accumulated Other Comprehensive Loss
A summary of the reclassifications out from accumulated other comprehensive loss is presented in the following table:
($ in millions)Three Months Ended
June 30,		Six Months Ended
June 30,		Location on Statement of Income
Detail of components2024202320242023
(Losses) gains on derivatives:
Foreign currency contracts$0.1 $(0.6)$0.2 $(1.3)Net sales
Foreign currency contracts(1.8)(0.6)(3.4)(0.6)Cost of goods and services sold
Foreign currency contracts1.0 (2.8)1.0 (2.8)Other expense (income)
Forward treasury locks— — (0.1)(0.1)Interest expense
Total before tax(0.7)(4.0)(2.3)(4.8)
Tax benefit0.1 1.2 0.5 1.3 
Net of tax$(0.6)$(2.8)$(1.8)$(3.5)
Amortization of defined benefit pension and other postretirement plans:
Actuarial gains$0.2 $0.4 $0.5 $0.8 (a)
Other— 0.4 — 0.4 
Total before tax0.2 0.8 0.5 1.2 
Tax expense— (0.2)(0.1)(0.3)
Net of tax$0.2 $0.6 $0.4 $0.9 
Total reclassifications for the period, net of tax$(0.4)$(2.2)$(1.4)$(2.6)

(a) This component is included in the computation of net periodic benefit cost.
v3.24.2
Shareholders' Equity (Tables)
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Schedule of Stockholders Equity
The following table presents the changes in shareholders’ equity for the six months ended June 30, 2024:
Common Shares IssuedCommon StockCapital in Excess of Par ValueNumber of Treasury SharesTreasury StockRetained EarningsAccumulated Other Comprehensive LossTotal
(in millions)
Balance, December 31, 202375.3 $18.8 $120.2 1.8 $(637.6)$3,523.4 $(143.8)$2,881.0 
Net income— — — — — 115.3 — 115.3 
Activity related to stock-based compensation— — (65.0)(0.2)79.4 — — 14.4 
Shares purchased under share repurchase program— — — 0.7 (267.0)— — (267.0)
Dividends declared ($0.20 per share)
— — — — — (14.6)— (14.6)
Other comprehensive loss, net of tax— — — — — — (48.5)(48.5)
Balance, March 31, 202475.3 $18.8 $55.2 2.3 $(825.2)$3,624.1 $(192.3)$2,680.6 
Net income— — — — — 111.3 — 111.3 
Activity related to stock-based compensation— — (21.7)(0.1)32.8 — — 11.1 
Shares purchased under share repurchase program— — — 0.5 (187.1)— — (187.1)
Dividends declared ($0.20 per share)
— — — — — (14.5)— (14.5)
Other comprehensive loss, net of tax— — — — — — (24.6)(24.6)
Balance, June 30, 202475.3 $18.8 $33.5 2.7 $(979.5)$3,720.9 $(216.9)$2,576.8 
The following table presents the changes in shareholders’ equity for the six months ended June 30, 2023:
Common Shares IssuedCommon StockCapital in Excess of Par ValueNumber of Treasury SharesTreasury StockRetained EarningsAccumulated Other Comprehensive LossTotal
(in millions)
Balance, December 31, 202275.3 $18.8 $232.2 1.2 $(370.9)$2,987.8 $(183.0)$2,684.9 
Net income— — — — — 140.0 — 140.0 
Activity related to stock-based compensation— — (50.8)(0.3)61.8 — — 11.0 
Shares purchased under share repurchase program— — — 0.2 (60.1)— — (60.1)
Dividends declared ($0.19 per share)
— — — — — (14.2)— (14.2)
Other comprehensive income, net of tax— — — — — — 14.6 14.6 
Balance, March 31, 202375.3 $18.8 $181.4 1.1 $(369.2)$3,113.6 $(168.4)$2,776.2 
Net income— — — — — 155.1 — 155.1 
Activity related to stock-based compensation— — (23.2)(0.2)41.2— — 18.0 
Shares purchased under share repurchase program— — — 0.5 (173.4)— — (173.4)
Dividends declared ($0.19 per share)
— — — — — (14.1)— (14.1)
Other comprehensive loss, net of tax— — — — — — (15.1)(15.1)
Balance, June 30, 202375.3 $18.8 $158.2 1.4 $(501.4)$3,254.6 $(183.5)$2,746.7 
v3.24.2
Other Expense (Income) (Tables)
 6 Months Ended
Jun. 30, 2024
Other Income and Expenses [Abstract]  
Schedule of Other Expense (Income)
Other expense (income) consists of:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Loss on disposal of plant$— $2.2 $— $11.6 
Foreign exchange transaction losses2.0 0.3 3.2 1.2 
Contingent consideration1.0 0.5 2.0 0.8 
Asset impairments0.3 1.5 0.9 3.4 
Restructuring and related charges— (0.8)— (0.8)
Other items— 0.3 0.3 0.7 
Total other expense (income)$3.3 $4.0 $6.4 $16.9 
Schedule of Restructuring Reserve
The following table presents activity related to our restructuring obligations related to our 2022 restructuring plan:

($ in millions)Severance
and benefits		Other chargesTotal
Balance, December 31, 2023$3.0 $— $3.0 
(Credits) Charges— — — 
Cash payments(0.3)— (0.3)
Balance, June 30, 2024$2.7 $— $2.7 
v3.24.2
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Schedule of Sales by Significant Product Group
The following table presents information about our reportable segments, reconciled to consolidated totals:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Net sales:    
Proprietary Products$559.7 $618.0 $1,119.2 $1,201.1 
Contract-Manufactured Products142.4 135.8 278.3 269.3 
Consolidated net sales$702.1 $753.8 $1,397.5 $1,470.4 
Schedule of Segment Reporting Information, by Segment
The following table provides summarized financial information for our segments:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2024202320242023
Operating profit (loss):
Proprietary Products$131.0 $194.2 $257.3 $364.9 
Contract-Manufactured Products17.2 14.9 34.3 32.3 
Total business segment operating profit$148.2 $209.1 $291.6 $397.2 
Corporate and Unallocated
Stock-based compensation expense$(4.3)$(7.5)$(9.3)$(16.0)
Corporate general costs (1)
(17.5)(16.6)(32.9)(31.3)
Unallocated Items:
Amortization of acquisition-related intangible assets (2)
(0.2)(0.2)(0.4)(0.4)
Loss on disposal of plant (3)
— (2.2)— (11.6)
Restructuring and other charges (4)
— (0.1)— (0.1)
Total Corporate and Unallocated(22.0)(26.6)(42.6)(59.4)
Total consolidated operating profit$126.2 $182.5 $249.0 $337.8 
Interest (income) expense, net and other nonoperating (income) expense, net(2.5)(2.4)(7.1)(5.0)
Income before income taxes and equity in net income of affiliated companies$128.7 $184.9 $256.1 $342.8 

(1) Corporate general costs includes executive and director compensation, certain pension and other retirement benefit costs, and other corporate facilities and administrative expenses not allocated to the segments.

(2) During the three and six months ended June 30, 2024, the Company recorded $0.2 million and $0.4 million, respectively, of amortization expense within operating profit associated with an intangible asset acquired during the second quarter of 2020. During the three and six months ended June 30, 2023, the Company recorded $0.2 million and $0.4 million, respectively, of amortization expense within operating profit associated with an intangible asset acquired during the second quarter of 2020.

(3) During the three and six months ended June 30, 2023, the Company recorded expense of $2.2 million and $11.6 million, respectively, within other expense (income), as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment. The transaction closed during the second quarter of 2023.
(4) Restructuring and other charges of $0.1 million for both the three and six months ended June 30, 2023 represents the net impact of an inventory write down of $0.9 million within cost of goods and services sold and a $0.8 million benefit within other expense (income) for revised severance estimates in connection with its 2022 restructuring plan.
v3.24.2
Revenue - Revenue Recognition (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Revenue from Contract with Customer Benchmark | Customer Concentration Risk        
Disaggregation of Revenue [Line Items]        
Concentration risk, percentage 100.00% 100.00% 100.00% 100.00%
Revenue from Contract with Customer Benchmark | Customer Concentration Risk | Biologics        
Disaggregation of Revenue [Line Items]        
Concentration risk, percentage 36.00% 37.00% 37.00% 36.00%
Revenue from Contract with Customer Benchmark | Customer Concentration Risk | Generics        
Disaggregation of Revenue [Line Items]        
Concentration risk, percentage 18.00% 20.00% 18.00% 20.00%
Revenue from Contract with Customer Benchmark | Customer Concentration Risk | Pharma        
Disaggregation of Revenue [Line Items]        
Concentration risk, percentage 26.00% 25.00% 25.00% 26.00%
Revenue from Contract with Customer Benchmark | Customer Concentration Risk | Contract-Manufactured Products        
Disaggregation of Revenue [Line Items]        
Concentration risk, percentage 20.00% 18.00% 20.00% 18.00%
Revenue from Contract with Customer Benchmark | Geographic Concentration Risk        
Disaggregation of Revenue [Line Items]        
Concentration risk, percentage 100.00% 100.00% 100.00% 100.00%
Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | Americas        
Disaggregation of Revenue [Line Items]        
Concentration risk, percentage 43.00% 44.00% 43.00% 44.00%
Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | Europe, Middle East, Africa        
Disaggregation of Revenue [Line Items]        
Concentration risk, percentage 48.00% 46.00% 48.00% 47.00%
Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | Asia Pacific        
Disaggregation of Revenue [Line Items]        
Concentration risk, percentage 9.00% 10.00% 9.00% 9.00%
Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk        
Disaggregation of Revenue [Line Items]        
Concentration risk, percentage 100.00% 100.00% 100.00% 100.00%
Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | High-Value Product Components        
Disaggregation of Revenue [Line Items]        
Concentration risk, percentage 46.00% 49.00% 46.00% 50.00%
Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | High-Value Product Delivery Devices        
Disaggregation of Revenue [Line Items]        
Concentration risk, percentage 11.00% 12.00% 11.00% 10.00%
Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | Standard Packaging        
Disaggregation of Revenue [Line Items]        
Concentration risk, percentage 23.00% 21.00% 23.00% 22.00%
Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | Contract-Manufactured Products        
Disaggregation of Revenue [Line Items]        
Concentration risk, percentage 20.00% 18.00% 20.00% 18.00%
v3.24.2
Revenue - Contracts and Liabilities (Details)
$ in Millions
 6 Months Ended
Jun. 30, 2024
USD ($)
Contract With Customer, Asset [Roll Forward]  
Contract assets, December 31, 2023 $ 21.5
Contract assets, June 30, 2024 22.6
Change in contract assets - increase (decrease) 1.1
Contract With Customer, Liability [Roll Forward]  
Deferred income, December 31, 2023 (53.9)
Deferred income, June 30, 2024 (52.2)
Change in deferred income - decrease (increase) $ 1.7
v3.24.2
Revenue - Narrative (Details)
$ in Millions
 6 Months Ended
Jun. 30, 2024
USD ($)
Revenue from Contract with Customer [Abstract]  
Revenue recognized that was included in the deferred income balance $ 24.2
v3.24.2
Net Income Per Share - Summary of Net Income Per Share (Details) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2024
Jun. 30, 2023
Earnings Per Share [Abstract]            
Net income $ 111.3 $ 115.3 $ 155.1 $ 140.0 $ 226.6 $ 295.1
Weighted average common shares outstanding (in shares) 73.0   74.3   73.3 74.4
Dilutive effect of equity awards, based on the treasury stock method (in shares) 0.7   1.1   0.7 1.1
Weighted average shares assuming dilution (in shares) 73.7   75.4   74.0 75.5
v3.24.2
Net Income Per Share - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2024
Jun. 30, 2023
Feb. 28, 2023
Earnings Per Share [Abstract]              
Antidilutive options excluded from computation of diluted net income per share (in shares) 300,000   100,000   300,000 100,000  
Stock repurchase program, shares authorized (in shares)             1,000,000,000
Share purchased under share repurchase program (in shares) 509,336   492,710   1,239,015 676,070  
Stock purchase program, cost of shares purchased $ 187.1 $ 267.0 $ 173.4 $ 60.1 $ 454.1 $ 233.5  
Stock repurchase program, average price per share (in dollars per share) $ 367.48   $ 351.82   $ 366.53 $ 345.33  
v3.24.2
Inventories (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Inventory Disclosure [Abstract]    
Raw materials $ 173.7 $ 172.3
Work in process 81.1 87.3
Finished goods 164.4 175.1
Total inventories $ 419.2 $ 434.7
v3.24.2
Leases - Lease Cost (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Leases [Abstract]        
Operating lease cost $ 6.1 $ 4.8 $ 11.7 $ 10.7
Finance lease - amortization of right-of-use (ROU) assets 0.3 0.0 0.3 0.0
Short-term lease cost 0.6 1.2 1.1 2.5
Variable lease cost 1.9 1.3 3.8 3.0
Total lease cost $ 8.9 $ 7.3 $ 16.9 $ 16.2
v3.24.2
Leases - Assets And Liabilities, Lessee (Details)
$ in Millions
Jun. 30, 2024
USD ($)
Leases [Abstract]  
ROU assets, net $ 31.0
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other noncurrent assets
Lease liabilities (current) $ 0.9
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities
Lease liabilities (noncurrent) $ 2.4
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other long-term liabilities
v3.24.2
Leases - Lease Cash Flow and Supplemental Information (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:        
Operating cash flows from operating leases $ 15.0 $ 5.0 $ 20.3 $ 9.9
Financing cash flows from finance leases 22.9 0.0 22.9 0.0
Right-of-use assets obtained in exchange for new lease liabilities, Operating leases 29.9 2.9 34.1 3.5
Right-of-use assets obtained in exchange for new lease liabilities, Finance Leases $ 24.3 $ 0.0 $ 24.3 $ 0.0
v3.24.2
Leases - Lease Weighted Average (Details)
Jun. 30, 2024
Dec. 31, 2023
Leases [Abstract]    
Weighted average remaining lease term, operating lease 8 years 7 months 6 days 9 years 9 months 18 days
Weighted average remaining lease term, finance lease 7 years 7 months 6 days  
Weighted average discount rate, operating lease 3.96% 3.55%
Weighted average discount rate, finance lease 4.94%  
v3.24.2
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Leases [Abstract]    
2024 (remaining period as of) $ 12.1 $ 20.9
2025 22.7 18.7
2026 19.8 15.7
2027 15.3 11.2
2028 13.8 9.5
Thereafter 36.2 42.1
Operating leases liabilities payments due 119.9 118.1
Less: imputed lease interest (15.0) (15.9)
Total lease liabilities $ 104.9 $ 102.2
v3.24.2
Leases - Maturities of Finance Lease Liabilities (Details)
$ in Millions
Jun. 30, 2024
USD ($)
Leases [Abstract]  
2024 (remaining period as of) $ 0.4
2025 0.9
2026 0.9
2027 0.8
2028 0.5
Thereafter 0.1
Finance leases liabilities payments due 3.6
Less: imputed lease interest (0.3)
Total lease liabilities $ 3.3
v3.24.2
Affiliated Companies (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Schedule of Equity Method Investments [Line Items]          
Carrying amount, equity-method investments $ 191.0   $ 191.0   $ 203.2
Carrying amount, investments not accounted for under the equity method 7.2   7.2   6.8
Amount due to affiliates 169.0   169.0   155.2
Net sales 702.1 $ 753.8 1,397.5 $ 1,470.4  
Amount receivable from affiliates 138.2   138.2   135.8
Affiliated Entity          
Schedule of Equity Method Investments [Line Items]          
Amount due to affiliates 20.4   20.4   25.9
Net sales 4.0 2.7 7.2 6.0  
Amount receivable from affiliates 2.4   2.4   $ 1.6
Distributorship Agreement          
Schedule of Equity Method Investments [Line Items]          
Related party transaction, purchases from related party $ 24.9 $ 39.9 $ 53.5 $ 84.1  
v3.24.2
Debt - Long-term Debt (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Jul. 05, 2012
Debt Instrument [Line Items]      
Long-term debt, gross $ 205.9 $ 207.0  
Less: unamortized debt issuance costs 0.1 0.2  
Total debt 205.8 206.8  
Less: current portion of long-term debt 132.9 134.0  
Long-term debt, net $ 72.9 72.8  
Term Loan, due December 31, 2024 (8.50%)      
Debt Instrument [Line Items]      
Debt instrument, stated interest rate 8.50%    
Long-term debt, gross $ 79.9 81.0  
Less: current portion of long-term debt $ 79.9    
Series B notes, due July 5, 2024 (3.82%)      
Debt Instrument [Line Items]      
Debt instrument, stated interest rate 3.82%   3.82%
Long-term debt, gross $ 53.0 53.0  
Series C notes, due July 5, 2027 (4.02%)      
Debt Instrument [Line Items]      
Debt instrument, stated interest rate 4.02%    
Long-term debt, gross $ 73.0 $ 73.0  
v3.24.2
Debt - Narrative (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Line of Credit Facility [Line Items]    
Long-term debt, gross $ 205.9 $ 207.0
Current portion of long-term debt 132.9 134.0
Revolving Credit Facility, Due 2024 | Revolving Credit Facility    
Line of Credit Facility [Line Items]    
Line of credit facility, current borrowing capacity 500.0  
Line of credit Facility, unused commitment level 497.6  
Revolving Credit Facility, Due 2024 | Letter of Credit    
Line of Credit Facility [Line Items]    
Long-term line of credit 2.4  
Term Loan Due 2024    
Line of Credit Facility [Line Items]    
Long-term debt, gross 79.9 $ 81.0
Current portion of long-term debt $ 79.9  
v3.24.2
Derivative Financial Instruments - Foreign Exchange Rate and Commodity Price Risk (Details)
€ in Millions, ¥ in Millions, $ in Millions, $ in Millions
 6 Months Ended 80 Months Ended
Jun. 30, 2024
SGD ($)
$ / bbl
bbl
Jun. 30, 2024
SGD ($)
$ / bbl
bbl
Jun. 30, 2024
USD ($)
$ / bbl
Jun. 30, 2024
EUR (€)
$ / bbl
Jun. 30, 2024
JPY (¥)
$ / bbl
Dec. 31, 2023
SGD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2023
EUR (€)
Dec. 31, 2019
USD ($)
Currency forwards | EUR | Intercompany Demand Notes                  
Derivative [Line Items]                  
Derivative, notional amount | €               € 278.6  
Currency forwards | SGD | Intercompany Loans                  
Derivative [Line Items]                  
Derivative, notional amount $ 601.5 $ 601.5       $ 601.5      
Currency forwards | SGD | Intercompany Demand Notes                  
Derivative [Line Items]                  
Derivative, notional amount $ 98.1 98.1       $ 94.0      
Currency forwards | USD | Intercompany Loans                  
Derivative [Line Items]                  
Derivative, notional amount     $ 13.4       $ 13.4    
Currency forwards | USD | Intercompany Demand Notes                  
Derivative [Line Items]                  
Derivative, notional amount     178.3            
Forward Contracts, One | EUR | Intercompany Demand Notes                  
Derivative [Line Items]                  
Derivative, notional amount | €       € 290.2          
Forward Contracts, Two | EUR | Intercompany Demand Notes                  
Derivative [Line Items]                  
Derivative, notional amount | €       23.5          
Foreign Exchange Forward                  
Derivative [Line Items]                  
Derivative contract term 18 months                
Foreign Exchange Forward | Purchase | Designated as Hedging Instrument | EUR                  
Derivative [Line Items]                  
Derivative, notional amount | €       30.5          
Foreign Exchange Forward | Purchase | Designated as Hedging Instrument | Yen                  
Derivative [Line Items]                  
Derivative, notional amount | ¥         ¥ 5,750.0        
Foreign Exchange Forward | Purchase | Designated as Hedging Instrument | SGD                  
Derivative [Line Items]                  
Derivative, notional amount $ 41.1 41.1              
Foreign Exchange Forward | Sell | Designated as Hedging Instrument | EUR                  
Derivative [Line Items]                  
Derivative, notional amount 0.0 0.0 33.4 0.0          
Foreign Exchange Forward | Sell | Designated as Hedging Instrument | Yen                  
Derivative [Line Items]                  
Derivative, notional amount 1.4 1.4 27.6 11.2          
Foreign Exchange Forward | Sell | Designated as Hedging Instrument | SGD                  
Derivative [Line Items]                  
Derivative, notional amount $ 0.0 $ 0.0 14.9 € 14.6          
Cross Currency Interest Rate Contract | Net Investment Hedges: | Yen                  
Derivative [Line Items]                  
Derivative, notional amount | ¥         ¥ 8,700.0        
Cross Currency Interest Rate Contract | Net Investment Hedges: | USD                  
Derivative [Line Items]                  
Derivative, notional amount     $ 79.9           $ 90.0
Options Held                  
Derivative [Line Items]                  
Derivative, nonmonetary notional amount, volume | bbl 201,801 1,079,145              
Derivative, average price risk option strike price | $ / bbl 86.26 86.26 86.26 86.26 86.26        
v3.24.2
Derivative Financial Instruments - Effects of Derivative Instruments on OCI and Earnings (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative gain (loss) recognized in income, fair value hedges $ (1.7) $ (0.9) $ (3.5) $ 0.3
Fair Value Hedges        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, forward point components, gain (loss), recognized in earnings (1.7) 0.2 (3.5) 1.4
Fair value and net investment hedges, amount of gain (loss) recognized in OCI 0.5 (2.2) 0.2 (2.0)
Fair value and net investment hedges, amount of (gain) loss reclassified from accumulated OCI into income (0.7) 1.9 (0.7) 1.9
Cash Flow Hedges:        
Derivative Instruments, Gain (Loss) [Line Items]        
Cash flow hedges, amount of gain (loss) recognized in OCI (3.7) (3.4) (6.5) (4.5)
Cash flow hedges, amount of (gain) loss reclassified from accumulated OCI into income 1.3 0.9 2.5 1.6
Cash Flow Hedges: | Forward treasury locks        
Derivative Instruments, Gain (Loss) [Line Items]        
Cash flow hedges, amount of gain (loss) recognized in OCI 0.0 0.0 0.0 0.0
Cash flow hedges, amount of (gain) loss reclassified from accumulated OCI into income 0.0 0.1 0.1 0.1
Net Investment Hedges:        
Derivative Instruments, Gain (Loss) [Line Items]        
Fair value and net investment hedges, amount of gain (loss) recognized in OCI 3.8 5.5 8.4 7.2
Fair value and net investment hedges, amount of (gain) loss reclassified from accumulated OCI into income 0.0 0.0 0.0 0.0
Other expense (income)        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative gain (loss) on hedged item, fair value hedges 2.9 7.4 10.4 9.9
Change in unrealized gain (loss) on fair value hedging instruments (2.9) (8.2) (10.4) (10.7)
Derivative gain (loss) on amount excluded from effectiveness testing, fair value hedges (1.7) (0.1) (3.5) 1.1
Other expense (income) | Fair Value Hedges | Foreign currency hedge contracts        
Derivative Instruments, Gain (Loss) [Line Items]        
Fair value and net investment hedges, amount of gain (loss) recognized in OCI 0.5 (2.2) 0.2 (2.0)
Fair value and net investment hedges, amount of (gain) loss reclassified from accumulated OCI into income (0.7) 1.9 (0.7) 1.9
Other expense (income) | Net Investment Hedges: | Cross-currency swap        
Derivative Instruments, Gain (Loss) [Line Items]        
Fair value and net investment hedges, amount of gain (loss) recognized in OCI 3.8 5.5 8.4 7.2
Fair value and net investment hedges, amount of (gain) loss reclassified from accumulated OCI into income 0.0 0.0 0.0 0.0
Net sales        
Derivative Instruments, Gain (Loss) [Line Items]        
Gain (loss) on derivative instruments, net, pretax (0.1) 0.4 (0.2) 1.1
Net sales | Cash Flow Hedges: | Foreign currency hedge contracts        
Derivative Instruments, Gain (Loss) [Line Items]        
Cash flow hedges, amount of gain (loss) recognized in OCI 0.0 (0.8) 0.1 (0.9)
Cash flow hedges, amount of (gain) loss reclassified from accumulated OCI into income (0.1) 0.4 (0.2) 1.1
Cost of goods and services sold        
Derivative Instruments, Gain (Loss) [Line Items]        
Gain (loss) on derivative instruments, net, pretax 1.4 0.4 2.6 0.4
Cost of goods and services sold | Cash Flow Hedges: | Foreign currency hedge contracts        
Derivative Instruments, Gain (Loss) [Line Items]        
Cash flow hedges, amount of gain (loss) recognized in OCI (3.7) (2.6) (6.6) (3.6)
Cash flow hedges, amount of (gain) loss reclassified from accumulated OCI into income 1.4 0.4 2.6 0.4
Interest expense        
Derivative Instruments, Gain (Loss) [Line Items]        
Gain (loss) on derivative instruments, net, pretax $ 0.0 $ 0.1 $ 0.1 $ 0.1
v3.24.2
Derivative Financial Instruments - Derivative Instruments Not Designated as Hedges (Details) - Not Designated as Hedging Instrument - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative instruments not designated as hedging instruments, gain (loss), net $ (0.1) $ (0.6) $ 0.4 $ (1.2)
Commodity call options | Other expense (income)        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative instruments not designated as hedging instruments, gain (loss), net (0.2) (0.4) (0.1) (1.0)
Currency forwards | Other expense (income)        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative instruments not designated as hedging instruments, gain (loss), net $ 0.1 $ (0.2) $ 0.5 $ (0.2)
v3.24.2
Fair Value Measurements - Assets and Liabilities Recorded at Fair Value (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Assets:    
Deferred compensation assets $ 10.4 $ 10.2
Foreign currency contracts 7.4 5.0
Total assets at fair value 44.2 34.2
Liabilities:    
Contingent consideration 3.8 3.6
Deferred compensation liabilities 10.6 10.4
Foreign currency contracts 14.7 2.2
Total liabilities at fair value 29.1 16.2
Cross-currency swap    
Assets:    
Commodity call options 25.7 18.4
Commodity    
Assets:    
Commodity call options 0.7 0.6
Level 1    
Assets:    
Deferred compensation assets 10.4 10.2
Foreign currency contracts 0.0 0.0
Total assets at fair value 10.4 10.2
Liabilities:    
Contingent consideration 0.0 0.0
Deferred compensation liabilities 10.6 10.4
Foreign currency contracts 0.0 0.0
Total liabilities at fair value 10.6 10.4
Level 1 | Cross-currency swap    
Assets:    
Commodity call options 0.0 0.0
Level 1 | Commodity    
Assets:    
Commodity call options 0.0 0.0
Level 2    
Assets:    
Deferred compensation assets 0.0 0.0
Foreign currency contracts 7.4 5.0
Total assets at fair value 33.8 24.0
Liabilities:    
Contingent consideration 0.0 0.0
Deferred compensation liabilities 0.0 0.0
Foreign currency contracts 14.7 2.2
Total liabilities at fair value 14.7 2.2
Level 2 | Cross-currency swap    
Assets:    
Commodity call options 25.7 18.4
Level 2 | Commodity    
Assets:    
Commodity call options 0.7 0.6
Level 3    
Assets:    
Deferred compensation assets 0.0 0.0
Foreign currency contracts 0.0 0.0
Total assets at fair value 0.0 0.0
Liabilities:    
Contingent consideration 3.8 3.6
Deferred compensation liabilities 0.0 0.0
Foreign currency contracts 0.0 0.0
Total liabilities at fair value 3.8 3.6
Level 3 | Cross-currency swap    
Assets:    
Commodity call options 0.0 0.0
Level 3 | Commodity    
Assets:    
Commodity call options $ 0.0
v3.24.2
Fair Value Measurements - Other Financial Instruments (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Other Financial Instruments [Abstract]    
Estimated fair value $ 203.0 $ 204.4
Carrying amount $ 205.8 $ 206.8
v3.24.2
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2024
Jun. 30, 2023
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]            
Beginning balance $ 2,680.6 $ 2,881.0 $ 2,776.2 $ 2,684.9 $ 2,881.0 $ 2,684.9
Other comprehensive (loss) income before reclassifications         (74.5) (3.1)
Amounts reclassified out from accumulated other comprehensive (loss) income         1.4 2.6
Other comprehensive (loss) income, net of tax (24.6) (48.5) (15.1) 14.6 (73.1) (0.5)
Ending balance 2,576.8 2,680.6 2,746.7 2,776.2 2,576.8 2,746.7
Derivatives            
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]            
Beginning balance   0.0   0.2 0.0 0.2
Other comprehensive (loss) income before reclassifications         (6.3) (6.5)
Amounts reclassified out from accumulated other comprehensive (loss) income         1.8 3.5
Other comprehensive (loss) income, net of tax         (4.5) (3.0)
Ending balance (4.5)   (2.8)   (4.5) (2.8)
Change in equity affiliate investment AOCI            
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]            
Beginning balance   2.3   1.6 2.3 1.6
Other comprehensive (loss) income before reclassifications         (0.2) (0.1)
Amounts reclassified out from accumulated other comprehensive (loss) income         0.0 0.0
Other comprehensive (loss) income, net of tax         (0.2) (0.1)
Ending balance 2.1   1.5   2.1 1.5
Defined benefit pension and other postretirement plans            
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]            
Beginning balance   (10.1)   (9.4) (10.1) (9.4)
Other comprehensive (loss) income before reclassifications         0.0 (0.5)
Amounts reclassified out from accumulated other comprehensive (loss) income         (0.4) (0.9)
Other comprehensive (loss) income, net of tax         (0.4) (1.4)
Ending balance (10.5)   (10.8)   (10.5) (10.8)
Foreign currency translation            
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]            
Beginning balance   (136.0)   (175.4) (136.0) (175.4)
Other comprehensive (loss) income before reclassifications         (68.0) 4.0
Amounts reclassified out from accumulated other comprehensive (loss) income         0.0 0.0
Other comprehensive (loss) income, net of tax         (68.0) 4.0
Ending balance (204.0)   (171.4)   (204.0) (171.4)
Total            
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]            
Beginning balance (192.3) (143.8) (168.4) (183.0) (143.8) (183.0)
Other comprehensive (loss) income, net of tax (24.6) (48.5) (15.1) 14.6    
Ending balance $ (216.9) $ (192.3) $ (183.5) $ (168.4) $ (216.9) $ (183.5)
v3.24.2
Accumulated Other Comprehensive Loss - Other Comprehensive Loss Reclassifications (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2024
Jun. 30, 2023
Reclassification out of Accumulated Other Comprehensive Loss [Line Items]            
Net sales $ 702.1   $ 753.8   $ 1,397.5 $ 1,470.4
Cost of goods and services sold (472.1)   (462.4)   (937.3) (907.7)
Other expense (income) (3.3)   (4.0)   (6.4) (16.9)
Interest expense (1.5)   (2.7)   (3.1) (4.9)
Income before income taxes and equity in net income of affiliated companies 128.7   184.9   256.1 342.8
Tax expense (21.9)   (34.8)   (38.3) (58.4)
Total reclassifications for the period, net of tax 111.3 $ 115.3 155.1 $ 140.0 226.6 295.1
Reclassification out of Accumulated Other Comprehensive Loss            
Reclassification out of Accumulated Other Comprehensive Loss [Line Items]            
Total reclassifications for the period, net of tax (0.4)   (2.2)   (1.4) (2.6)
Reclassification out of Accumulated Other Comprehensive Loss | (Losses) gains on derivatives:            
Reclassification out of Accumulated Other Comprehensive Loss [Line Items]            
Income before income taxes and equity in net income of affiliated companies (0.7)   (4.0)   (2.3) (4.8)
Tax expense 0.1   1.2   0.5 1.3
Total reclassifications for the period, net of tax (0.6)   (2.8)   (1.8) (3.5)
Reclassification out of Accumulated Other Comprehensive Loss | (Losses) gains on derivatives: | Foreign currency contracts            
Reclassification out of Accumulated Other Comprehensive Loss [Line Items]            
Net sales 0.1   (0.6)   0.2 (1.3)
Cost of goods and services sold (1.8)   (0.6)   (3.4) (0.6)
Other expense (income) 1.0   (2.8)   1.0 (2.8)
Reclassification out of Accumulated Other Comprehensive Loss | (Losses) gains on derivatives: | Forward treasury locks            
Reclassification out of Accumulated Other Comprehensive Loss [Line Items]            
Interest expense 0.0   0.0   (0.1) (0.1)
Reclassification out of Accumulated Other Comprehensive Loss | Amortization of defined benefit pension and other postretirement plans:            
Reclassification out of Accumulated Other Comprehensive Loss [Line Items]            
Actuarial gains 0.2   0.4   0.5 0.8
Other 0.0   0.4   0.0 0.4
Income before income taxes and equity in net income of affiliated companies 0.2   0.8   0.5 1.2
Tax expense 0.0   (0.2)   (0.1) (0.3)
Total reclassifications for the period, net of tax $ 0.2   $ 0.6   $ 0.4 $ 0.9
v3.24.2
Shareholder's Equity - Change in Shareholders' Equity (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2024
Jun. 30, 2023
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Beginning balance $ 2,680.6 $ 2,881.0 $ 2,776.2 $ 2,684.9 $ 2,881.0 $ 2,684.9
Beginning balance (in shares)   1,800,000     1,800,000  
Net income 111.3 $ 115.3 155.1 140.0 $ 226.6 $ 295.1
Activity related to stock-based compensation $ 11.1 14.4 $ 18.0 11.0    
Share purchased under share repurchase program (in shares) 509,336   492,710   1,239,015 676,070
Shares purchased under share repurchase program $ (187.1) (267.0) $ (173.4) (60.1) $ (454.1) $ (233.5)
Dividends declared (14.5) (14.6) (14.1) (14.2)    
Other comprehensive (loss) income, net of tax (24.6) (48.5) (15.1) 14.6 (73.1) (0.5)
Ending balance $ 2,576.8 $ 2,680.6 $ 2,746.7 $ 2,776.2 $ 2,576.8 $ 2,746.7
Ending balance (in shares) 2,700,000       2,700,000  
Dividends declared per share (in dollars per share) $ 0.20 $ 0.20 $ 0.19 $ 0.19    
Common Stock            
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Beginning balance (in shares) 75,300,000 75,300,000 75,300,000 75,300,000 75,300,000 75,300,000
Beginning balance $ 18.8 $ 18.8 $ 18.8 $ 18.8 $ 18.8 $ 18.8
Ending balance (in shares) 75,300,000 75,300,000 75,300,000 75,300,000 75,300,000 75,300,000
Ending balance $ 18.8 $ 18.8 $ 18.8 $ 18.8 $ 18.8 $ 18.8
Capital in Excess of Par Value            
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Beginning balance 55.2 120.2 181.4 232.2 120.2 232.2
Activity related to stock-based compensation (21.7) (65.0) (23.2) (50.8)    
Ending balance 33.5 55.2 158.2 181.4 33.5 158.2
Treasury Stock            
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Beginning balance $ (825.2) $ (637.6) $ (369.2) $ (370.9) $ (637.6) $ (370.9)
Beginning balance (in shares) 2,300,000 1,800,000 1,100,000 1,200,000 1,800,000 1,200,000
Activity related to stock-based compensation $ 32.8 $ 79.4 $ 41.2 $ 61.8    
Activity related to stock -based compensation (in shares) (100,000) (200,000) (200,000) (300,000)    
Share purchased under share repurchase program (in shares) 500,000 700,000 500,000 200,000    
Shares purchased under share repurchase program $ (187.1) $ (267.0) $ (173.4) $ (60.1)    
Ending balance $ (979.5) $ (825.2) $ (501.4) $ (369.2) $ (979.5) $ (501.4)
Ending balance (in shares) 2,700,000 2,300,000 1,400,000 1,100,000 2,700,000 1,400,000
Retained Earnings            
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Beginning balance $ 3,624.1 $ 3,523.4 $ 3,113.6 $ 2,987.8 $ 3,523.4 $ 2,987.8
Net income 111.3 115.3 155.1 140.0    
Dividends declared (14.5) (14.6) (14.1) (14.2)    
Ending balance 3,720.9 3,624.1 3,254.6 3,113.6 3,720.9 3,254.6
Accumulated Other Comprehensive Loss            
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Beginning balance (192.3) (143.8) (168.4) (183.0) (143.8) (183.0)
Other comprehensive (loss) income, net of tax (24.6) (48.5) (15.1) 14.6    
Ending balance $ (216.9) $ (192.3) $ (183.5) $ (168.4) $ (216.9) $ (183.5)
v3.24.2
Stock-Based Compensation (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Shares available for issuance under the 2016 plan (in shares) 1,339,458   1,339,458  
Stock options, granted (in shares)     85,263  
Stock options, weighted average exercise price (in dollars per share)     $ 350.28  
Stock options, weighted average grant date fair value (in dollars per share)     $ 134.93  
Risk-free interest rate     4.30%  
Expected life     6 years  
Stock volatility     32.00%  
Dividend yield     0.30%  
Stock-based compensation expense $ 4.3 $ 7.5 $ 9.3 $ 16.0
Performance Share Unit (PSUs)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Granted (in shares)     32,876  
Grant date fair value (in dollars per share)     $ 350.28  
Performance Share Unit (PSUs) | Minimum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Target award percentage     0.00%  
Performance Share Unit (PSUs) | Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Target award percentage     200.00%  
Restricted Stock Units (RSUs)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Granted (in shares)     7,019  
Grant date fair value (in dollars per share)     $ 350.65  
v3.24.2
Other Expense (Income) - Schedule of Other Expense (Income) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Other Income and Expenses [Abstract]        
Loss on disposal of plant $ 0.0 $ 2.2 $ 0.0 $ 11.6
Foreign exchange transaction losses 2.0 0.3 3.2 1.2
Contingent consideration 1.0 0.5 2.0 0.8
Asset impairments 0.3 1.5 0.9 3.4
Restructuring and related charges 0.0 (0.8) 0.0 (0.8)
Other items 0.0 0.3 0.3 0.7
Total other expense (income) $ 3.3 $ 4.0 $ 6.4 $ 16.9
v3.24.2
Other Expense (Income) - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended
Dec. 31, 2022
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Restructuring Cost and Reserve [Line Items]          
Loss on disposal of plant   $ 0.0 $ 2.2 $ 0.0 $ 11.6
2022 Restructuring Plan          
Restructuring Cost and Reserve [Line Items]          
Restructuring plan, implementation period 24 months        
2022 Restructuring Plan | Minimum          
Restructuring Cost and Reserve [Line Items]          
Restructuring and related cost, expected cost $ 22.0        
Effect on future earnings, amount 22.0        
2022 Restructuring Plan | Maximum          
Restructuring Cost and Reserve [Line Items]          
Restructuring and related cost, expected cost 24.0        
Effect on future earnings, amount $ 24.0        
v3.24.2
Other Expense (Income) - Schedule of Restructuring Reserve (Details) - 2022 Restructuring Plan
$ in Millions
 6 Months Ended
Jun. 30, 2024
USD ($)
Restructuring Reserve [Roll Forward]  
Balance, December 31, 2023 $ 3.0
(Credits) Charges 0.0
Cash payments (0.3)
Balance, June 30, 2024 2.7
Severance and benefits  
Restructuring Reserve [Roll Forward]  
Balance, December 31, 2023 3.0
(Credits) Charges 0.0
Cash payments (0.3)
Balance, June 30, 2024 2.7
Other charges  
Restructuring Reserve [Roll Forward]  
Balance, December 31, 2023 0.0
(Credits) Charges 0.0
Cash payments 0.0
Balance, June 30, 2024 $ 0.0
v3.24.2
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Income Tax Disclosure [Abstract]        
Provision for income taxes $ 21.9 $ 34.8 $ 38.3 $ 58.4
Effective income tax rate 17.00% 18.80% 15.00% 17.00%
v3.24.2
Segment Information - Narrative (Details)
 6 Months Ended
Jun. 30, 2024
segment
Segment Reporting [Abstract]  
Number of reportable segments 2
v3.24.2
Segment Information - Sales by Product Group (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
Net sales $ 702.1 $ 753.8 $ 1,397.5 $ 1,470.4
Proprietary Products        
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
Net sales 559.7 618.0 1,119.2 1,201.1
Contract-Manufactured Products        
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]        
Net sales $ 142.4 $ 135.8 $ 278.3 $ 269.3
v3.24.2
Segment Information - Segment Financial Information (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Segment Reporting Information [Line Items]        
Operating profit $ 126.2 $ 182.5 $ 249.0 $ 337.8
Stock-based compensation expense     (9.3) (16.0)
Loss on disposal of plant 0.0 (2.2) 0.0 (11.6)
Interest (income) expense, net and other nonoperating (income) expense, net (2.5) (2.4) (7.1) (5.0)
Income before income taxes and equity in net income of affiliated companies 128.7 184.9 256.1 342.8
Operating Segments        
Segment Reporting Information [Line Items]        
Operating profit 148.2 209.1 291.6 397.2
Operating Segments | Proprietary Products        
Segment Reporting Information [Line Items]        
Operating profit 131.0 194.2 257.3 364.9
Operating Segments | Contract-Manufactured Products        
Segment Reporting Information [Line Items]        
Operating profit 17.2 14.9 34.3 32.3
Corporate and Unallocated        
Segment Reporting Information [Line Items]        
Operating profit (22.0) (26.6) (42.6) (59.4)
Stock-based compensation expense (4.3) (7.5) (9.3) (16.0)
Corporate general costs (17.5) (16.6) (32.9) (31.3)
Amortization of acquisition-related intangible assets (0.2) (0.2) (0.4) (0.4)
Loss on disposal of plant 0.0 (2.2) 0.0 (11.6)
Restructuring and severance related charges $ 0.0 (0.1) $ 0.0 (0.1)
Corporate and Unallocated | 2022 Restructuring Plan        
Segment Reporting Information [Line Items]        
Inventory write-down   0.9   0.9
Benefit within other expense (income) for revised severance estimates   $ 0.8   $ 0.8
v3.24.2
Subsequent Events (Details) - USD ($)
 6 Months Ended
Jul. 02, 2024
Jun. 30, 2024
Jun. 30, 2023
Jul. 05, 2012
Subsequent Event [Line Items]        
Repayments of long-term debt   $ 36,100,000 $ 1,100,000  
Term Loan, due December 31, 2024 (8.50%)        
Subsequent Event [Line Items]        
Debt instrument, stated interest rate   8.50%    
Series B notes, due July 5, 2024 (3.82%)        
Subsequent Event [Line Items]        
Debt instrument, stated interest rate   3.82%   3.82%
Subsequent Event | Term Loan, Due 2027        
Subsequent Event [Line Items]        
Principal amount $ 130,000,000      
Subsequent Event | Term Loan, due December 31, 2024 (8.50%)        
Subsequent Event [Line Items]        
Repayments of long-term debt 79,900,000      
Subsequent Event | Series B notes, due July 5, 2024 (3.82%)        
Subsequent Event [Line Items]        
Repayments of long-term debt $ 53,000,000      
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