WSTWest Pharmaceutical Services

Working capital - Working capital at December 31, 2024 decreased 2025 increased by $276.9 $335.6 million, or 21.9%, 34.0%, as compared to December 31, 2023, 2024, which includes an unfavorable increase of $49.0 million due to foreign currency translation impact of $41.8 million. translation. Excluding the impact of currency exchange rates, cash and cash equivalents, total current liabilities liabilities, inventories and inventories decreased other current assets increased by $349.0 $281.8 million, $103.3 $75.7 million, $42.3 million and $42.0 $45.2 million, respectively, while accounts receivable increased by $58.8 million. respectively. The decrease increase in cash and cash equivalents was due to cash from operations, partially offset by share repurchases and capital expenditures and share repurchases in 2024, offset by cash collections driven by positive operating results during the period. 2025. The decrease increase in total current liabilities was primarily due driven by increases in our annual incentives. The increase in inventories was largely in work-in-progress and finished goods inventory in connection with customer demand to ensure we have sufficient inventory on hand to support the Company amending its Credit Facility Agreement during 2024. As part needs of this amendment, all current notes payable and our customers. The increase in other current debt amounts were repaid. The decrease in inventories and assets was due primarily to held for sale assets being recorded into other current assets. For further information regarding the increase in accounts receivable were both due to increased net sales leading up to the Company's held for sale assets at December 31, 2024 balance sheet date as compared 2025 refer to the December 31, 2023 balance sheet date. Note 1, Basis of Presentation and Summary of Significant Accounting Policies.

The manufacturing of some of our products has involved, and may continue to involve, the use, transportation, storage, and disposal of hazardous or toxic materials and is subject to various environmental protection and occupational health and safety laws and regulations in the countries in which we operate. This has exposed us in the past, and could expose us in the future, to risks of accidental contamination and events of non-compliance with environmental laws. Any such occurrences could result in regulatory enforcement or personal injury and property damage claims or could lead to a shutdown of some of our operations, which could have an adverse effect on our business and results of operations. We currently incur costs to comply with environmental laws and regulations and these costs may become more significant, especially as the laws become more stringent and our use of materials changes. For example, the European Union and some states in the United States have introduced, and are considering more comprehensive updates to, regulations aimed at restricting the use of per and polyfluoroalkyl substances (“PFAS”) in packaging. Such regulations restricting or banning PFAS could adversely affect our business and results of operations in the event of our non-compliance and/or our development and adoption of alternative materials in our products.

Revenue Recognition: 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. We have elected to disregard the effects of a significant financing component, as we expect, at the inception of our contracts, that the period between when we transfer a promised good or service to the customer and when the customer pays for that good or service will be one year or less. In addition, we have elected to omit the disclosure of the majority of our remaining performance obligations, which are satisfied within one year or less. Please refer to Note 3, Revenue, for additional information.

At December 31, 2024, 2025, our outstanding unconditional contractual commitments, including for the purchase of raw materials and finished goods, amounted to $200.7 $221.8 million, the majority of which is to be paid over the next four three years, with $46.7 $75.0 million due to be paid in 2025. 2026.