WEST PHARMACEUTICAL SERVICES INC
For the period ended Dec 31, 2023. Filed Feb 20, 2024.
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FY2023 · Filed Feb 20, 2024
WST$412.55-0.1%Stored close · as of Nov 10, 2026
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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share data)
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Net sales | $2,949.8 | $2,886.9 | $2,831.6 |
| Cost of goods and services sold | 1,820.6 | 1,750.7 | 1,655.8 |
| Gross profit | 1,129.2 | 1,136.2 | 1,175.8 |
| Research and development | 68.4 | 58.5 | 52.8 |
| Selling, general and administrative expenses | 353.4 | 316.9 | 362.8 |
| Other expense (income) (Note 16) | 31.4 | 26.8 | 7.9 |
| Operating profit | 676.0 | 734.0 | 752.3 |
| Interest expense | 9.0 | 7.9 | 8.2 |
| Interest income | (28.0) | (5.1) | (1.0) |
| Other nonoperating (income) expense | (3.0) | 51.3 | (3.8) |
| Income before income taxes and equity in net income of affiliated companies | 698.0 | 679.9 | 748.9 |
| Income tax expense | 122.3 | 114.7 | 107.2 |
| Equity in net income of affiliated companies | (17.7) | (20.7) | (20.1) |
| Net income | $593.4 | $585.9 | $661.8 |
| Net income per share: | |||
| Basic | $7.98 | $7.87 | $8.89 |
| Diluted | $7.88 | $7.73 | $8.67 |
| Weighted average shares outstanding: | |||
| Basic | 74.3 | 74.4 | 74.4 |
| Diluted | 75.3 | 75.8 | 76.3 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Net income | $593.4 | $585.9 | $661.8 |
| Other comprehensive income (loss), net of tax: | |||
| Foreign currency translation adjustments, net of tax of $1.0, $2.2, and $2.4 | 39.4 | (47.3) | (59.3) |
| Defined benefit pension and other postretirement plans: | |||
| Prior service cost arising during period, net of tax of $0.0, $0.0, and $0.5 | — | — | 1.5 |
| Net actuarial gain (loss) arising during period, net of tax of $0.4, $(2.4), and $2.1 | 0.8 | (9.3) | 5.9 |
| Settlement effects arising during period, net of tax of $0.0, $20.3, and $0.4 | 0.1 | 31.9 | 1.4 |
| Less: amortization of actuarial (gain) loss, net of tax of $(0.4), $(0.1), and $0.1 | (1.3) | (0.5) | 0.1 |
| Less: amortization of prior service credit, net of tax of $0.0, $0.0, and $(0.1) | — | — | (0.2) |
| Less: amortization of other, net of tax of $(0.1), $0.1, and $0.0 | (0.3) | 0.3 | — |
| Net gain (loss) on equity affiliate accumulated other comprehensive income, net of tax of $0.0, $0.0, and $0.0 | 0.7 | 0.1 | 0.9 |
| Net (loss) gain on derivatives, net of tax of $0.0, $0.2, and $0.5 | (0.2) | 1.4 | 0.7 |
| Other comprehensive income (loss), net of tax | 39.2 | (23.4) | (49.0) |
| Comprehensive income | $632.6 | $562.5 | $612.8 |
CONSOLIDATED BALANCE SHEETS
West Pharmaceutical Services, Inc. and Subsidiaries at December 31, 2023 and 2022
| (in millions, except per share data) | 2023 | 2022 |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $853.9 | $894.3 |
| Accounts receivable, net | 512.0 | 507.4 |
| Inventories | 434.7 | 414.8 |
| Other current assets | 135.8 | 103.0 |
| Total current assets | 1,936.4 | 1,919.5 |
| Property, plant and equipment | 2,738.0 | 2,386.6 |
| Less: accumulated depreciation and amortization | 1,324.7 | 1,228.3 |
| Property, plant and equipment, net | 1,413.3 | 1,158.3 |
| Operating lease right-of-use assets | 99.2 | 104.4 |
| Investments in affiliated companies | 210.0 | 204.9 |
| Goodwill | 108.5 | 107.3 |
| Intangible assets, net | 15.1 | 18.4 |
| Deferred income taxes | 25.7 | 65.6 |
| Other noncurrent assets | 21.3 | 38.4 |
| Total Assets | $3,829.5 | $3,616.8 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Notes payable and other current debt | $134.0 | $2.2 |
| Accounts payable | 242.4 | 215.4 |
| Accrued salaries, wages and benefits | 105.9 | 76.8 |
| Income taxes payable | 16.6 | 24.8 |
| Operating lease liabilities | 17.7 | 16.0 |
| Other current liabilities | 155.2 | 183.8 |
| Total current liabilities | 671.8 | 519.0 |
| Long-term debt | 72.8 | 206.7 |
| Deferred income taxes | 12.7 | 14.3 |
| Pension and other postretirement benefits | 29.6 | 28.2 |
| Operating lease liabilities | 84.5 | 93.0 |
| Deferred compensation benefits | 18.6 | 19.1 |
| Other long-term liabilities | 58.5 | 51.6 |
| Total Liabilities | 948.5 | 931.9 |
| Commitments and contingencies (Note 18) | ||
| Equity: | ||
| Preferred stock, 3.0 million shares authorized; 0.0 shares issued and outstanding in 2023 and 2022 | — | — |
| Common stock, par value $0.25 per share; 200 million shares authorized; shares issued: 75.3 million in 2023 and 2022; shares outstanding: 73.5 million and 74.1 million in 2023 and 2022 | 18.8 | 18.8 |
| Capital in excess of par value | 120.2 | 232.2 |
| Retained earnings | 3,523.4 | 2,987.8 |
| Accumulated other comprehensive loss | (143.8) | (183.0) |
| Treasury stock, at cost (1.8 million and 1.2 million shares in 2023 and 2022) | (637.6) | (370.9) |
| Total Equity | 2,881.0 | 2,684.9 |
| Total Liabilities and Equity | $3,829.5 | $3,616.8 |
CONSOLIDATED STATEMENTS OF EQUITY
| Common shares issued | Common stock | Capital in excess of par value | Number of treasury shares | Treasury stock | Retained earnings | Accumulated other comprehensive loss | Total | |
|---|---|---|---|---|---|---|---|---|
| Balance, December 31, 2020 | 75.3 | $18.8 | $267.3 | 1.3 | $(167.7) | $1,846.7 | $(110.6) | $1,854.5 |
| Net Income | — | — | — | — | — | 661.8 | — | 661.8 |
| Activity related to stock-based compensation | — | — | (18.3) | (0.7) | 75.3 | — | — | 57.0 |
| Shares purchased under share repurchase program | — | — | — | 0.5 | (137.1) | — | — | (137.1) |
| Dividends declared ($0.70 per share) | — | — | — | — | — | (51.8) | — | (51.8) |
| Other comprehensive loss, net of tax | — | — | — | — | — | — | (49.0) | (49.0) |
| Balance, December 31, 2021 | 75.3 | 18.8 | 249.0 | 1.1 | (229.5) | 2,456.7 | (159.6) | 2,335.4 |
| Net income | — | — | — | — | — | 585.9 | — | 585.9 |
| Activity related to stock-based compensation | — | — | (16.8) | (0.5) | 61.4 | — | — | 44.6 |
| Shares purchased under share repurchase program | — | — | — | 0.6 | (202.8) | — | — | (202.8) |
| Dividends declared ($0.74 per share) | — | — | — | — | — | (54.8) | — | (54.8) |
| Other comprehensive loss, net of tax | — | — | — | — | — | — | (23.4) | (23.4) |
| Balance, December 31, 2022 | 75.3 | 18.8 | 232.2 | 1.2 | (370.9) | 2,987.8 | (183.0) | 2,684.9 |
| Net income | — | — | — | — | — | 593.4 | — | 593.4 |
| Activity related to stock-based compensation | — | — | (112.0) | (0.7) | 171.6 | — | — | 59.6 |
| Shares purchased under share repurchase program | — | — | — | 1.3 | (438.3) | — | — | (438.3) |
| Dividends declared ($0.78 per share) | — | — | — | — | — | (57.8) | — | (57.8) |
| Other comprehensive income, net of tax | — | — | — | — | — | — | 39.2 | 39.2 |
| Balance, December 31, 2023 | 75.3 | $18.8 | $120.2 | 1.8 | $(637.6) | $3,523.4 | $(143.8) | $2,881.0 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Cash flows from operating activities: | |||
| Net income | $593.4 | $585.9 | $661.8 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||
| Depreciation | 133.7 | 116.9 | 116.9 |
| Amortization | 3.6 | 3.7 | 5.4 |
| Stock-based compensation | 23.3 | 23.7 | 37.5 |
| Non-cash restructuring charges | — | 15.3 | — |
| Pension settlement charge | 0.1 | 52.2 | 1.8 |
| Loss on disposal of plant | 11.6 | — | — |
| Asset impairments | 9.6 | 6.2 | 5.6 |
| Deferred income taxes | 37.5 | (30.8) | (42.9) |
| Pension and other retirement plans, net | (2.6) | (14.0) | 14.8 |
| Equity in undistributed earnings of affiliates, net of dividends | (14.3) | (18.1) | (17.4) |
| Other, net | 1.0 | (2.0) | (1.4) |
| Changes in assets and liabilities: | |||
| Decrease (increase) in accounts receivable | 4.0 | (35.6) | (123.5) |
| Increase in inventories | (13.5) | (49.8) | (86.5) |
| (Increase) decrease in other current assets | (21.3) | 18.5 | (7.3) |
| Increase (decrease) in accounts payable | 4.4 | (2.8) | 16.8 |
| Changes in other assets and liabilities | 6.0 | 54.7 | 2.4 |
| Net cash provided by operating activities | 776.5 | 724.0 | 584.0 |
| Cash flows from investing activities: | |||
| Capital expenditures | (362.0) | (284.6) | (253.4) |
| Acquisition of business | — | — | (2.2) |
| Other, net | (6.7) | (3.6) | 2.5 |
| Net cash used in investing activities | (368.7) | (288.2) | (253.1) |
| Cash flows from financing activities: | |||
| Debt issuance cost | — | (1.2) | — |
| Repayments of long-term debt | (2.3) | (44.3) | (2.2) |
| Dividend payments | (57.0) | (54.1) | (51.1) |
| Proceeds from stock-based compensation awards | 43.9 | 20.9 | 29.4 |
| Employee stock purchase plan contributions | 7.1 | 7.3 | 7.7 |
| Shares purchased under share repurchase programs | (438.3) | (202.8) | (137.1) |
| Shares repurchased for employee tax withholdings | (12.9) | (19.4) | (14.8) |
| Other, net | (0.1) | — | — |
| Net cash used in financing activities | (459.6) | (293.6) | (168.1) |
| Effect of exchange rates on cash | 11.4 | (10.5) | (15.7) |
| Net (decrease) increase in cash and cash equivalents | (40.4) | 131.7 | 147.1 |
| Cash, including cash equivalents at beginning of period | 894.3 | 762.6 | 615.5 |
| Cash, including cash equivalents at end of period | $853.9 | $894.3 | $762.6 |
| Supplemental cash flow information: | |||
| Interest paid, net of amounts capitalized | $6.0 | $6.6 | $8.0 |
| Income taxes paid, net | $90.8 | $109.7 | $171.8 |
| Accrued capital expenditures | $53.3 | $33.2 | $41.1 |
| Dividends declared, not paid | $14.8 | $14.1 | $13.4 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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