Avery Dennison

2 0 2 4
Annual Report 
Making 
Possible
™

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-K
È
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 28, 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 1-7685
AVERY DENNISON CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
Delaware
95-1492269
(State of Incorporation)
(I.R.S. Employer Identification No.)
8080 Norton Parkway
Mentor, Ohio
44060
(Address of Principal Executive Offices)
(Zip Code)
Registrant’s telephone number, including area code:
(440) 534-6000
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, $1 par value
AVY
New York Stock Exchange
1.25% Senior Notes due 2025
AVY25
Nasdaq Stock Market
3.75% Senior Notes due 2034
AVY34
Nasdaq Stock Market
Securities registered pursuant to Section 12(g) of the Act:
Not applicable.
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes È No ‘
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ‘ No È
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 È 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 È 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 È
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 has filed a report on and attestation to its management’s assessment of the effectiveness of its
internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that
prepared or issued its audit report. È
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in
the filing reflect the correction of an error to previously issued financial statements. ‘
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ‘
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ‘ No È
The aggregate market value of voting and non-voting common equity held by non-affiliates as of June 28, 2024, the last business day of the
registrant’s most recently completed second fiscal quarter, was approximately $17.5 billion.
Number of shares of common stock, $1 par value, outstanding as of February 22, 2025, the end of the registrant’s most recent fiscal month:
78,994,622.
The following documents are incorporated by reference into the Parts of this Form 10-K indicated below:
Document
Incorporated by reference into:
Portions of Definitive Proxy Statement for Annual Meeting of Stockholders to be held on April 24, 2025
Parts III, IV

AVERY DENNISON CORPORATION
FISCAL YEAR 2024 ANNUAL REPORT ON FORM 10-K
TABLE OF CONTENTS
Page
PART I
Item 1.
Business
2
Item 1A.
Risk Factors
7
Item 1B.
Unresolved Staff Comments
19
Item 1C.
Cybersecurity
20
Item 2.
Properties
21
Item 3.
Legal Proceedings
21
Item 4.
Mine Safety Disclosures
21
PART II
Item 5.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities
22
Item 6.
Reserved
23
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
24
Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
42
Item 8
Financial Statements and Supplementary Data
43
Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
89
Item 9A.
Controls and Procedures
89
Item 9B.
Other Information
89
Item 9C.
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
89
PART III
Item 10.
Directors, Executive Officers and Corporate Governance
90
Item 11.
Executive Compensation
91
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
91
Item 13.
Certain Relationships and Related Transactions, and Director Independence
91
Item 14.
Principal Accountant Fees and Services
91
PART IV
Item 15.
Exhibits and Financial Statement Schedules
92
Item 16.
Form 10-K Summary
97
Signatures
98
Power of Attorney
99

Safe Harbor Statement
The matters discussed in this Annual Report on Form 10-K contain “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements, which are not statements of historical fact,
contain estimates, assumptions, projections and/or expectations regarding future events, which may or may not occur.
Words such as “aim,” “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “foresee,” “guidance,”
“intend,” “may,” “might,” “objective,” “plan,” “potential,” “project,” “seek,” “shall,” “should,” “target,” “will,” “would,” or
variations thereof, and other expressions that refer to future events and trends, identify forward-looking statements. Our
forward-looking statements, and financial or other business targets, are subject to certain risks and uncertainties, which
could cause our actual results to differ materially from the expected results, performance or achievements expressed or
implied by such forward-looking statements.
We believe that the most significant risk factors that could affect our financial performance in the near term include:
(i) the impact on underlying demand for our products from global economic conditions, geopolitical uncertainty, and
changes in environmental standards, regulations and preferences; (ii) competitors’ actions, including pricing, expansion in
key markets, and product offerings; (iii) the cost and availability of raw materials; (iv) the degree to which higher costs can
be offset with productivity measures and/or passed on to customers through price increases, without a significant loss of
volume; (v) foreign currency fluctuations; and (vi) the execution and integration of acquisitions.
Certain risks and uncertainties are discussed in more detail under “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in this Annual Report on Form 10-K. Actual results and trends
may differ materially from historical or anticipated results depending on a variety of factors, including but not limited to,
risks and uncertainties related to the following:
•
International Operations – worldwide economic, social, geopolitical and market conditions; changes in
geopolitical conditions, including those related to trade relations and tariffs, China, the Russia-Ukraine war, the
Israel-Hamas war and related hostilities in the Middle East; fluctuations in foreign currency exchange rates; and
other risks associated with international operations, including in emerging markets
•
Our Business – fluctuations in demand affecting sales to customers; fluctuations in the cost and availability of
raw materials and energy; changes in our markets due to competitive conditions, technological developments,
laws and regulations, customer preferences; environmental regulations and sustainability trends; the impact of
competitive products and pricing; the execution and integration of acquisitions; selling prices; customer and
supplier concentrations or consolidations; the financial condition of distributors; outsourced manufacturers;
product and service quality claims; restructuring and other cost reduction actions; our ability to generate
sustained productivity improvement and our ability to achieve and sustain targeted cost reductions; the timely
development and market acceptance of new products, including sustainable or sustainably-sourced products;
our investment in development activities and new production facilities; the collection of receivables from
customers; and our sustainability and governance practices
•
Information Technology – disruptions in information technology systems; cyber security events or other security
breaches; and successful installation of new or upgraded information technology systems
•
Income Taxes – fluctuations in tax rates; changes in tax laws and regulations, and uncertainties associated with
interpretations of such laws and regulations; outcome of tax audits; and the realization of deferred tax assets
•
Human Capital – recruitment and retention of employees and collective labor arrangements
•
Our Indebtedness – our ability to obtain adequate financing arrangements and maintain access to capital; credit
rating risks; fluctuations in interest rates; and compliance with our debt covenants
•
Ownership of Our Stock – potential significant variability of our stock price and amounts of future dividends and
share repurchases
•
Legal and Regulatory Matters – protection and infringement of our intellectual property; the impact of legal and
regulatory proceedings, including with respect to compliance and anti-corruption, environmental, health and
safety, and trade compliance
•
Other Financial Matters – fluctuations in pension costs and goodwill impairment
Our forward-looking statements are made only as of February 26, 2025. We assume no duty to update these
forward-looking statements to reflect new, changed or unanticipated events or circumstances, other than as may be
required by law.
Avery Dennison Corporation | 2024 Annual Report
1

PART I
Item 1. BUSINESS
Company Background
Avery Dennison Corporation (“Avery Dennison” or the “Company” and generally referred to as “we” or “us”) was
incorporated in Delaware in 1977 as Avery International Corporation, the successor corporation to a California
corporation of the same name incorporated in 1946. In 1990, we merged one of our subsidiaries into Dennison
Manufacturing Company (“Dennison”), as a result of which Dennison became our wholly-owned subsidiary and in
connection with which we changed our name to Avery Dennison Corporation. You can learn more about us by visiting our
website at www.averydennison.com. Our website is not intended to function as a hyperlink and the information on our
website is not, nor should it be considered, part of this report or incorporated by reference into this report.
Business Overview and Reportable Segments
We are a global materials science and digital identification solutions company. We are Making PossibleTM products
and solutions that help advance the industries we serve, providing branding and information solutions that optimize labor
and supply chain efficiency, reduce waste, advance sustainability, circularity and transparency, and better connect brands
and consumers. We design and develop labeling and functional materials, radio-frequency identification (“RFID”) inlays
and tags, software applications that connect the physical and digital, and offerings that enhance branded packaging and
carry or display information that improves the customer experience. We serve an array of industries worldwide, including
home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals and
automotive.
We believe that our exposure to diverse and growing markets, the size and scale of operations, our innovation
capabilities, productivity culture, and brand strength across our businesses are the primary advantages in maintaining and
further developing our competitive position.
Our reportable segments for fiscal year 2024 were Materials Group and Solutions Group. In 2024, our Materials
Group and Solutions Group reportable segments comprised approximately 69% and 31%, respectively, of our total net
sales.
In 2024, international operations constituted a substantial majority of our business, representing approximately
70% of our net sales. As of December 28, 2024, we operated over 200 manufacturing and distribution facilities and had
locations in more than 50 countries.
Materials Group
Our Materials Group is a leading global provider to the pressure-sensitive label and graphics industries. Our
innovative products include label materials, graphics and reflective materials and functional bonding materials, like tapes.
Our label materials enhance brands’ shelf appeal, inform shoppers, advance circularity, increase transparency, help reduce
waste and improve operational supply chain efficiency. Our graphics portfolio offers highly engineered products ranging
from vehicle wraps to architectural films. Our tapes portfolio includes bonding and functional materials for applications in
various industry sectors such as automotive, building and construction and electronics. We leverage the group’s materials
science capabilities and process engineering expertise to develop and manufacture Intelligent Labels at scale and drive
their further adoption through our converter channel access.
Our Materials Group manufactures and sells Fasson®-, JAC®-, and Avery Dennison®-brand pressure-sensitive
label materials and performance tapes products, Avery Dennison®- and Mactac®-brand graphics, and Avery Dennison®-
brand reflective products. Materials Group’s business tends not to be seasonal, except for certain outdoor graphics and
reflective products.
Pressure-sensitive materials consist primarily of papers, plastic films and metal foils, which are coated with
internally-developed and purchased adhesives, and then laminated with specially-coated backing papers and films. They
are then sold in roll or sheet form with either solid or patterned adhesive coatings in a wide range of face materials, sizes,
thicknesses and adhesive properties.
A pressure-sensitive, or self-adhesive, material is one that adheres to a surface by press-on contact. It generally
consists of four layers: a face material, which may be paper, metal foil or plastic film; an adhesive, which may be
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permanent or removable; a release coating; and a backing material to protect the adhesive from premature contact with
other surfaces that can also serve as a carrier for supporting and dispensing individual labels. When the products are
ready for use, the release coating and protective backing are removed, exposing the adhesive so that the label or other
face material may be pressed or rolled into place. Because they are easy to apply without the need for adhesive activation,
self-adhesive materials can provide cost savings compared to other materials that require heat- or moisture-activated
adhesives, while also offering aesthetic and other advantages over alternative technologies.
Label materials are sold worldwide to label converters for labeling, decorating and specialty applications in the
food, home and personal care, beer and beverage, durables, pharmaceutical, wine and spirits and logistics market
segments. When used in package decoration applications, the visual appeal of self-adhesive materials can help increase
sales of the products on which the materials are applied. Self-adhesive materials are also used to convey variable
information through various digital triggers, including bar codes, QR codes and RFID inlays, for applications such as
shipping labels and weight and price information for packaged meats and other foods. Self-adhesive materials provide
consistent and versatile adhesion and are available in a large selection of materials, which can be made into labels of
varying sizes and shapes.
Our graphics and reflective products include a variety of films and other products that are sold to the architectural,
commercial sign, digital printing and other related market segments. We also sell durable cast and reflective films to the
construction, automotive and fleet transportation market segments and reflective films for traffic and safety applications.
We provide sign shops, commercial printers and designers a broad range of pressure-sensitive materials that allow them
to create impactful and informative brand and decorative graphics. We offer a wide array of pressure-sensitive vinyl and
specialty materials designed for digital imaging, screen printing and sign cutting applications.
Our performance tapes products include a variety of Fasson®-brand and Avery Dennison®-brand tapes and other
pressure-sensitive adhesive-based materials and converted products, mechanical fasteners and performance polymers.
Our pressure-sensitive adhesive-based materials are available in roll form and in a wide range of face materials, sizes,
thicknesses and adhesive properties. These materials and converted products are used in non-mechanical fastening,
bonding and sealing systems for various automotive, electronics, building and construction, general industrial, personal
care, and medical applications. The mechanical fasteners are primarily precision-extruded and injection-molded plastic
devices used in various automotive, general industrial and retail applications.
Our larger competitors in label materials include UPM Raflatac, a subsidiary of UPM Corporation; Fedrigoni Self-
Adhesives; Lintec Corporation; Flexcon Corporation, Inc.; and an array of smaller regional and local companies. For
graphics and reflective products, our largest competitors are 3M Company (“3M”) and the Orafol Group. For performance
tapes products, our competitors include 3M; Tesa-SE, a subsidiary of Beiersdorf AG; Nitto Denko Corporation; and
numerous regional and specialty suppliers. For fastener products, there are a variety of competitors supplying extruded
and injection molded fasteners and fastener attaching equipment. We believe that entry of competitors into the field of
pressure-sensitive adhesives and materials is limited by technical knowledge and capital requirements. We believe that
our technical expertise, size and scale of operations, broad line of quality products, reliable service, product and process
innovation, distribution capabilities and brand strength are the primary advantages in maintaining and further developing
our competitive position.
Solutions Group
Our Solutions Group is a leading provider of information and branding solutions that cover worldwide marketplace
needs ranging from digital identification and data management to branding and embellishment, productivity, pricing and
retail media. As a large ultra-high-frequency RFID solutions provider, we empower customers across multiple retail and
industry segments, including apparel, logistics, food and grocery and general retail, to connect the physical and digital
worlds by enabling a digital identity and life on physical items. Our innovation and data management capabilities, global
footprint and market access continuously expand our solutions platform.
The branding solutions of the Solutions Group include brand embellishments, graphic tickets, tags, and labels, and
sustainable packaging. Solutions Group’s information solutions include item-level RFID solutions; visibility and loss
prevention solutions; price ticketing and marking; care, content, and country of origin compliance solutions; brand
protection and security solutions; and Vestcom®-brand shelf-edge productivity and media solutions.
In the Solutions Group, our primary competitors include Checkpoint Systems, Inc., a subsidiary of CCL Industries
Inc.; R-pac International Corporation; SML Group Limited; Arizon RFID Technology Cayman Co Ltd; and Tageos, a
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subsidiary of Fedrigoni Group. We believe that our product, process and solution innovation, global distribution network,
reliable service, product quality and consistency, and ability to serve customers consistently with comprehensive solutions
close to where they manufacture, source and sell are the key advantages in maintaining and further developing our
competitive position.
Research, Development and Innovation
As a global leader in materials science, we innovate to develop and introduce new products and solutions that help
customers solve some of the most complex problems in the industries we serve. Our vision is to leverage the strengths of
our Materials and Solutions groups to continue to drive growth within these businesses and lead at the intersection of the
physical and digital worlds. Our decades of experience creating solutions for customers and our core capabilities in
materials science, engineering and process technology enable us to drive continuous innovation throughout our
industries. Our innovation efforts focus on anticipating market and customer challenges and opportunities, and applying
technology to address them. Our investment in innovation aims to accelerate growth by developing new products and
solutions, expand margins through material re-engineering, and enable customer success by leveraging scalable
innovation platforms and delivering sustainability initiatives and advanced technologies.
Many of our new products result from our research and development efforts. These efforts are directed primarily
toward developing products, solutions and operating techniques and improving productivity, sustainability and product
performance, often in close association with our customers or end users. These efforts provide intellectual property that
leverages our research and development relating to materials science, such as adhesives, films, inks and release liners,
and process engineering technology, such as coating, laminating and printing technologies in Materials Group. We focus
on research projects related to RFID, external embellishments, data and digital solutions and printing technologies in
Solutions Group, in each case for which we have and license a number of patents. Additionally, our research and
development efforts include sustainable innovation and design of products that advance the circular economy, reduce
materials and waste, use recycled content, and extend product end-of-life or enable product recycling.
Acquisitions and Venture Investments
In addition to our investments to support organic growth, we have pursued complementary and synergistic
acquisitions. In 2023, we acquired Silver Crystal Group (“Silver Crystal”), a Canada-based provider of sports apparel
customization and application solutions across in-venue, direct-to-business and e-commerce platforms; LG Group, Inc.
(“Lion Brothers”), a Maryland-based designer and manufacturer of apparel brand embellishments; and Thermopatch, Inc.
(“Thermopatch”), a New York-based manufacturer specializing in labeling, embellishments and transfers for the sports,
industrial laundry, workwear and hospitality industries. The aggregate purchase consideration for these acquisitions was
approximately $231 million. During 2024, we also made venture investments in three companies developing
technological solutions that we believe have the potential to advance our businesses. For information regarding our
acquisitions, see Note 2, “Business Acquisitions,” in the Notes to Consolidated Financial Statements. For information
regarding our venture investments, see Note 9, “Fair Value Measurements,” in the Notes to Consolidated Financial
Statements.
Patents, Trademarks and Licenses
The loss of individual patents or licenses would not be material to us taken as a whole, nor to our operating
segments individually. Our principal trademarks are Avery Dennison, our logo, and Fasson. We believe these trademarks
are strong in the market segments in which we operate.
Human Capital Resources
Our Global Workforce
With approximately 70% of our 2024 net sales originating outside the U.S. and approximately 40% of our net
sales originating in emerging markets (Latin America, Eastern Europe, Middle East/Northern Africa, and most countries in
Asia Pacific), our employees are located in more than 50 countries to best serve our customers. Approximately 83% of
our employees at year-end 2024 were located outside the U.S. and approximately 66% were located in emerging
markets.
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The charts below show our global employee population by region and operational function. Over 19,000 of our
approximately 35,000 employees at year-end 2024, representing approximately 58% of our global workforce, were in
Asia Pacific, serving our customers in that region. At that time, approximately 65% of our global workforce worked in the
operations of our manufacturing facilities or in positions directly supporting them from other locations.
Workforce by Region
Asia Pacific
58 %
North America
21
Europe
17
Latin America
4
Workforce by Function
Operations
65 %
Non-Operations
35
Talent & Development
Attracting, developing and retaining highly-skilled talent is critical to our ability to continue delivering sustainable
growth. We provide ongoing support and professional development resources to our team members worldwide to ensure
that their skills evolve with our business needs, industry trends and human capital management best practices, as well as
enable increased productivity, peak performance and career growth. We have robust talent review and succession
planning processes that provide individually targeted development opportunities for our team members. We emphasize
on-the-job development and coaching, and also provide facilitator-led and direct-access online training, leadership
opportunities to execute special projects and, in some cases, cross-functional, cross-regional, or cross-divisional work
assignments. In 2024, we introduced an enterprise-wide competency model that provides transparency and clarity
around what we expect from our leaders, which will serve as the go-forward foundation of all of our talent practices, from
talent selection and retention to individual and career development to succession.
Compensation & Benefits
Our total rewards philosophy is to offer market-based, competitive wages and benefits in the markets where we
compete for talent. All of our employees were paid at least the applicable legal minimum wage, and over 99% of our
employees were paid above the applicable legal minimum wage, at year-end 2024. Pay is generally positioned around
the market median, with variances based on knowledge, skills, years of experience and in line with our pay for
performance philosophy. In addition to base wages, our compensation and benefit programs — which vary by region,
country and business unit — include short-term incentives (generally paid in cash), long-term incentives (e.g., cash- or
stock-based awards), employee benefit and retirement plans, healthcare and insurance benefits, health savings and
flexible spending accounts, paid time off, leave of absence and employee assistance programs. We offer the opportunity
for flexible work arrangements for most of our office-based workforce to provide them with greater flexibility to balance
their work and personal commitments, while ensuring that we meet the needs of our business. Our information
technology infrastructure, information security protocols and digital tools support employee efficiency and effectiveness
wherever they work.
Pay equity is an important part of our global pay planning and practices. Each year, we engage an independent
third party to evaluate pay equity, making merit-based pay adjustments where appropriate. In 2024, we reviewed pay
equity (considering total base, annual incentives and long-term incentives) with respect to gender for 93% of our global
employee population, and with respect to gender and race/ethnicity for all U.S. employees. We continue to enhance our
manager education, tools and processes to provide fair and equitable pay.
Employee Engagement
Because we believe that an engaged workforce promotes retention and minimizes employee turnover, we annually
conduct a global employee engagement survey. With a focus on continuous improvement, in 2023 we launched our
Avery Dennison Corporation | 2024 Annual Report
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survey using a more advanced platform providing real-time access to results, improved analytics and ability to connect
data throughout the employee experience, more meaningful comparisons to external benchmarks, and ongoing pulse
survey capability. We deployed this same platform in 2024, enabling year-over-year comparability of results. Our
business and functional teams use the anonymized results of our survey to identify and implement actions to address
potential opportunities for improvement. While employee engagement is the result of many factors, we believe strong,
encouraging and open leadership, as well as a continued effort to foster a collaborative, supportive culture, leads to
strong workforce engagement.
Workforce Health & Safety
Safety is one of our highest priorities, and we continually work to ensure our manufacturing facilities, distribution
centers and administrative offices focus on safety, so that anyone working in or visiting one of our locations feels and
remains safe from injury. Our global Recordable Incident Rate of 0.21 in 2024 was significantly lower than the
Occupational Safety and Health Administration manufacturing industry average of 2.8 in 2023 (the most recent available
industry average).
Workplace Culture
We aim to foster an environment where our employees with various skills, experiences and backgrounds can grow
and be increasingly productive and innovative, allowing us to benefit from a highly engaged team and attract and retain
talent for the benefit of our stakeholders. Our global people-focused strategic pillars include enhancing the experience of
our manufacturing employees and making merit and transparency even more foundational to our employee experience.
We have a global team that helps advance these priorities in coordination with regional councils and our employee
resource groups, which are open to all our team members and provide individuals with shared interests a forum in which
to identify ways in which we can improve our employee experience.
Manufacturing and Environmental Matters
We use various raw materials – primarily paper, plastic films and resins, as well as specialty chemicals purchased
from various commercial and industrial sources – that are subject to price fluctuations. Although shortages can occur from
time to time, these raw materials are generally available.
We produce a majority of our self-adhesive materials using water-based emulsion and hot-melt adhesive
technologies. A portion of our manufacturing process for self-adhesive materials utilizes organic solvents, which, unless
controlled, could be emitted into the atmosphere or contaminate soil or groundwater. Emissions from these operations
contain small amounts of volatile organic compounds, which are regulated by federal, state, local and foreign
governments. We continue to evaluate the use of alternative materials and technologies to minimize these emissions. In
connection with the maintenance and acquisition of certain manufacturing equipment, we invest in solvent capture and
control units to assist in regulating these emissions.
We have developed adhesives and adhesive processing systems that minimize the use of solvents. Emulsion
adhesives, hot-melt adhesives, and solventless and emulsion silicone systems have been installed in many of our facilities.
Based on current information, we do not believe that the cost of complying with applicable laws regulating the
emission or discharge of materials into the environment, or otherwise relating to the protection of the environment, will
have a material effect upon our capital expenditures, consolidated financial position, results of operations or competitive
position.
For information regarding our potential responsibility for cleanup costs at certain hazardous waste sites, see
Note 8, “Contingencies,” in the Notes to Consolidated Financial Statements.
Available Information
Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and
amendments to those reports filed with, or furnished to, the Securities and Exchange Commission (“SEC”) pursuant to
Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are available free of
charge on our investor website at www.investors.averydennison.com as soon as reasonably practicable after they are
electronically filed with or furnished to the SEC. This website address is not intended to function as a hyperlink and the
information located there is not, nor should it be considered, part of this report or incorporated by reference into this
report. We also make available on the investors section of our website under “Governance Documents” the following
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2024 Annual Report | Avery Dennison Corporation

documents as currently in effect: (i) Amended and Restated Certificate of Incorporation, as amended; (ii) Amended and
Restated Bylaws; (iii) Corporate Governance Guidelines; (iv) Code of Conduct, which applies to our directors, officers and
employees; (v) Code of Ethics for our Chief Executive Officer and Senior Financial Officers; (vi) charters of the Audit,
Talent and Compensation, Governance and Finance Committees of our Board of Directors; and (vii) Audit Committee
Complaint Procedures for Accounting and Auditing Matters. These documents are also available free of charge upon
written request to our Corporate Secretary, Avery Dennison Corporation, 8080 Norton Parkway, Mentor, Ohio 44060.
Reports filed with or furnished to the SEC may be viewed at www.sec.gov.
Item 1A. RISK FACTORS
The risk factors described in this section could materially adversely affect our business, including our results of
operations, cash flows and financial condition, and cause the value of our securities to decline. This list of risks is not
exhaustive. Our ability to attain our goals and objectives is dependent on numerous factors and risks, including, but not
limited to, the most significant ones described in this section.
Risk Related to Our International Operations
The demand for our products is impacted by the effects of, and changes in, worldwide economic, social, geopolitical
and market conditions, which have had in the past and could in the future have a material adverse effect on our
business.
We have operations in more than 50 countries and our domestic and international operations are strongly
influenced by matters beyond our control, including changes in geopolitical, social, economic and labor conditions, tax
laws, and U.S. and international trade regulations (including tariffs), as well as the impact these changes have on demand
for our products. In 2024, approximately 70% of our net sales were produced in international operations.
Macroeconomic developments such as impacts from slower growth in the geographic regions in which we
operate; inflation, resulting from, among other things, increased raw material, energy, and freight costs; labor shortages;
geopolitical, social, supply chain and other disruptions; epidemics, pandemics or other outbreaks of illness, disease or
virus; and uncertainty in the global credit or financial markets could result in a material adverse effect on our business as a
result of, among other things, lower consumer spending, fluctuations in foreign currency exchange rates, reduced asset
valuations, diminished liquidity and credit availability, volatility in securities prices, and credit rating downgrades.
Tensions remain in trade relations between the U.S. and certain other regions and countries, including Canada, Mexico,
China, India and the European Union. The U.S. recently announced intentions to impose a significant tariff on certain goods
from Canada and Mexico and a smaller tariff on certain goods from China. Each of these countries announced that they would
impose reciprocal tariffs, with Canada and Mexico each agreeing upon certain concessions with the U.S. to temporarily delay
the mutual imposition of tariffs. The tariff on certain goods from China has gone into effect, with China imposing reciprocal
tariffs, and the amount of these tariffs or the classes of goods on which they are imposed could significantly increase. The U.S.
has also indicated that it may impose reciprocal tariffs on goods from other countries or regions. While the impacts on our
operations to date have not been significant, our business could be materially adversely impacted by changes in U.S. and
non-U.S. trade policies, including potential modifications to existing trade agreements and additional tariffs or restrictions on
free trade, impacting our raw materials or finished products. These actions or other developments in international trade
relations could have a material adverse effect on our business.
In addition, business and operational disruptions or delays caused by geopolitical, social or economic instability and
unrest – such as recent civil, political and economic disturbances in Argentina, Afghanistan, Syria, Iraq, Yemen, Iran, Turkey,
North Korea, and Bangladesh and the related impact on global stability, the Russia-Ukraine war, the Israel-Hamas war,
terrorist attacks and the potential for other hostilities or natural disasters in various parts of the world – could contribute to a
climate of economic and geopolitical uncertainty that could have a material adverse effect on our business. Since the Russia-
Ukraine war began in February 2022, we have maintained our position of not shipping products for the Russian market. The
impact of the continuing war, as well as any further retaliatory actions taken by Russia, the U.S., the European Union and other
jurisdictions, is unknown and could have a material adverse effect on our business. In addition, since the beginning of the
Israel-Hamas war in late 2023; our sales in Israel have declined, with sales representing less than 1% of our total net sales in
2024. We have experienced some disruptions in our operations in Israel and the Middle East and implemented plans to
address these disruptions, as well as the impacts thereof in Gaza, Lebanon and other areas of the Middle East, while focusing
on the continued safety of our Israeli employees and their families. The continued impact of this war and any related hostilities
in the Middle East region or elsewhere is unknown and could have a material adverse effect on our business.
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We are not able to predict the duration and severity of adverse economic, social, geopolitical or market conditions
in the U.S. or other countries.
Foreign currency exchange rates, and fluctuations in those rates, affect our business.
The majority of our net sales in 2024 was denominated in foreign currencies. Our financial results are therefore
subject to the impact of currency translation, which may be material. Overall, our foreign currency transaction exposure is
largely mitigated because the costs of our products are generally denominated in the same currencies in which they are
sold.
Fluctuations in currency exchange rates, such as the unfavorable impacts associated with the Argentine peso,
Chinese renminbi and euro in 2024, may result in a variety of negative effects, including lower net sales, increased costs,
lower gross margins, increased allowance for credit losses and/or write-offs of accounts receivable, and required
recognition of impairments of capitalized assets, including goodwill and other intangible assets. Foreign currency
translation decreased our 2024 net sales by approximately $33 million compared to the prior year.
We monitor our foreign currency exposures and sometimes use hedging instruments to mitigate some of our
transactional exposure to changes in foreign currencies. The effectiveness of our hedges in part depends on our ability to
accurately forecast our future cash flows, which is particularly difficult during periods of uncertain demand for our
products and services and volatile foreign currency exchange rates. Our hedging activities may offset only a portion, or
none at all, of the material adverse financial effects of unfavorable movements in foreign currency exchange rates over
the limited time the hedges are in place and we may incur significant losses from these activities.
Our strategy includes continuing to grow in emerging markets, which creates greater exposure to unstable
geopolitical conditions, civil unrest, economic volatility, and other risks applicable to operating in these regions.
Approximately 40% of our net sales in 2024 originated in emerging markets, which includes countries in Asia
Pacific, Latin America, Eastern Europe and Middle East/Northern Africa. The profitable growth of our business in
emerging markets is an important part of our long-term growth strategy and our regional results have and can fluctuate
significantly based on their economic conditions. Our business operations have been and may continue to be adversely
affected by the current and future political environment in China, both relating to in-country changes in laws and
regulations or the interpretation thereof, as well as a result of its response to tariffs imposed by the U.S. government on
goods imported from China, tariffs imposed by China on U.S. goods, the increasing use of economic sanctions and export
control restrictions, and tensions related to Hong Kong and Taiwan.
If we are unable to successfully expand our business in emerging markets or achieve the return on capital we
expect from our investments in these countries, our financial performance would be materially adversely affected. In
addition to the risks applicable to our international operations, factors that have negatively impacted our operations in
these emerging markets from time to time include the less established or reliable legal systems and possible disruptions
due to unstable geopolitical conditions, civil unrest or economic volatility. These factors can have a material adverse effect
on our business in the affected markets by decreasing consumer purchasing power, reducing demand for our products or
increasing our costs.
Our operations and activities outside of the U.S. subject us to risks different from and potentially greater than those
associated with our domestic operations.
A substantial portion of our employees and assets are located outside of the U.S. and, in 2024, approximately 70%
of our sales was generated outside of the U.S. International operations and activities involve risks that are different from
and potentially greater than the risks we face in our domestic operations, including changes in foreign geopolitical,
regulatory and economic conditions, whether nationally, regionally or locally; changes in foreign currency exchange rates;
differing levels of inflation; reduced protection of intellectual property rights; laws and regulations impacting our ability to
repatriate foreign earnings; challenges complying with foreign laws and regulations, including those relating to sales,
operations, taxes, employment and legal proceedings; establishing effective controls and procedures to monitor
compliance with U.S. laws and regulations such as the Foreign Corrupt Practices Act and similar foreign laws and
regulations, such as the UK’s Bribery Act of 2010; differences in lending practices; and challenges with complying with
applicable export and import control laws and regulations.
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Risks Related to Our Business
As a manufacturer, our sales and profitability depend upon the availability and cost of raw materials and energy,
which may be subject to significant price fluctuations, and our ability to control or offset increases in raw material
and labor costs. Raw material and freight cost increases have impacted our business.
Raw materials represent a significant portion of our costs and a critical element of our profitability. The markets for
the raw materials used in our businesses are challenging and can be volatile, impacting availability and pricing.
Additionally, energy costs can be volatile and unpredictable. Shortages and inflationary or other increases in the costs of
raw materials, labor, freight and energy have occurred in the past, and could recur. In 2021 and 2022, we implemented
targeted price increases in our Materials Group reportable segment to address raw material inflation, which began
moderating in 2023 and largely stabilized in 2024. If we experience inflationary headwinds in the future, we may
implement similar pricing measures. Our performance depends in part on our ability to offset increased raw material costs
by raising our selling prices or re-engineering our products.
It is also important for us to obtain timely delivery of materials, equipment, and other resources from suppliers, and
to make timely delivery to customers. We may experience supply chain disruptions due to natural and other disasters or
other events, or our existing relationships with suppliers could deteriorate or end in the future. While we undertake
business continuity planning and take actions to mitigate these disruptions when they occur, such as sourcing from other
regions or suppliers, any disruption in our supply chain could have a material adverse effect on our sales and profitability,
and any sustained inability to obtain adequate supplies could have a material adverse effect on our business.
We are affected by changes in our markets due to competitive conditions, technological developments, laws and
regulations, and customer preferences. If we do not compete effectively or respond appropriately to these changes, it
could reduce demand for our products and solutions, or we could lose market share or reduce our selling prices to
maintain market share, any of which could materially adversely affect our business.
Growing the proportion of our portfolio in high-value categories that serve markets that are growing faster than
gross domestic product, represent large pools of potential profit and leverage our core capabilities is an important part of
our long-term growth strategy. High-value products and solutions include our specialty and durable label materials,
graphics and reflective solutions, and industrial tapes; intelligent labels that use RFID tags and inlays; shelf-edge pricing,
productivity and consumer engagement solutions; and external embellishments. We face the risk that existing or new
competitors, which include some of our customers, distributors, and suppliers, will expand in our key market segments or
develop new technologies, including in high-value categories, enhancing their competitive position relative to ours.
Competitors also may be able to offer products, services, lower prices or other incentives that we cannot or that, to
maintain profitability, we may not be able to offer. There can be no assurance that we will be able to compete successfully
against current or future competitors or new technologies.
We are also exposed to changes in customer order patterns, such as changes in the levels of inventory maintained
by customers and the timing of customer purchases, which are affected by announced price increases, changes in our
customer incentive programs, or changes in the customer’s ability to achieve incentive targets. Changes in customers’
preferences for our products can also decrease demand for our products and have a material adverse effect on our
business. In our Materials Group reportable segment, as supply chain constraints eased in 2022, customers increased
inventory levels following a period of reduced availability. In the fourth quarter of 2022, inventories downstream from our
company began to unwind swiftly, resulting in lower demand. This continued in 2023, with volume improving
sequentially throughout that year and normalizing in 2024.
We are affected by changes in our markets due to increasing environmental regulations and sustainability trends. If
we do not respond appropriately to these changes, it could negatively impact market demand, our market share and
pricing, any of which could materially adversely affect our business. Adverse weather conditions and natural
disasters, including those related to the impacts of climate change, adversely affect our business.
A substantial amount of our label material is sold for use in plastic packaging in the food, beverage, and home and
personal care market segments. In recent years, there has been an accelerated focus on sustainability and transparency in
sustainability reporting, with greater concern regarding climate change and single-use plastics, corporate commitments
and increasing stakeholder expectations regarding the reuse and recyclability of plastic packaging and recycled content,
and increased regulation in multiple geographies regarding the collection, recycling and use of recycled content. Changes
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in consumer preferences and laws and regulations related to the use of plastics, particularly in Europe and certain states
in the United States, presents the risk of reduced demand for certain of our products if customers seek decoration
technology alternatives to pressure-sensitive labeling, but also the opportunity for increased demand for our more
sustainable products, a significant focus of our research and development and related innovation efforts. We have
established strategic innovation platforms and priorities focused, among other things, on delivering products and
solutions that advance the circular economy, reduce supply chain waste and address the need for increased recyclability
of plastic packaging. We have made substantial investments in our sustainability-driven products, but there can be no
assurance that they will be successful, and a significant reduction in the use of plastic packaging could materially
adversely affect demand for our products.
Continued growth in sustainability-focused regulation presents an increasing risk to our business. Reporting
requirements such as the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence
Directive in Europe and the state of California’s climate reporting requirements are increasing the amount of sustainability
disclosures we are required to make, as well as requiring the audit of a greater amount of our sustainability data. Costs to
comply with these regulations will continue to grow and any failure to meet the requirements of these regulations could
result in fines or other penalties. As part of our efforts to mitigate the impacts of climate change on our business, we
engaged a third party to help us assess our physical and transitional risk relative to the recommendations of the Financial
Stability Board’s Task Force on Climate-Related Financial Disclosures.
The scientific consensus is that emissions of greenhouse gases (“GHG”) are altering our atmosphere in ways that
are adversely affecting global climate. There is continuing concern from members of the scientific community and the
general public that GHG emissions and other human activities will continue causing significant changes in weather
patterns and increase the frequency or severity of extreme weather events, including droughts, wildfires and flooding.
These types of extreme weather events have and may continue to adversely impact us, our suppliers and our customers,
including their ability to purchase our products and our ability to timely receive appropriate raw materials to manufacture
and transport our products on a timely basis. Concern regarding climate change has led and is likely to continue leading to
increasing demands by legislators and regulators, customers, consumers, investors, employees and non-governmental
organizations for companies to reduce their GHG emissions. One of our 2025 sustainability goals is to achieve at least a
3% absolute reduction in our GHG emissions year-over-year and at least a 26% absolute reduction compared to our
2015 baseline by 2025; we have already exceeded the cumulative 2025 GHG emissions reduction goal. As part of our
more ambitious 2030 sustainability goals, we are aiming by 2030 to reduce our Scope 1 and 2 GHG emissions by 70%
compared to our 2015 baseline and work with our supply chain to reduce Scope 3 GHG emissions. We could face risks to
our reputation, investor confidence and market share if we are unable to continue reducing our GHG emissions at levels
satisfactory to our stakeholders.
Increased raw material costs, such as for fuel and electricity, and compliance-related costs could also impact
customer demand for our products. The extent of the impact of climate change on our business is uncertain, as it will
depend on the limits imposed by, and timing of, new or stricter laws and regulations, more stringent environmental
standards and expectations, and evolving customer and consumer preferences, but it is likely to increase our costs and
could have a material adverse effect on our business.
We have recently acquired companies and are likely to acquire other companies. Acquisitions come with significant
risks and uncertainties, including those related to integration, technology and employees.
To drive our strategies to increase the proportion of our business from high-value categories, enhance our portfolio
by growing our existing businesses and expanding into new areas, and accelerate market-driven innovation, we have
made acquisitions and are likely to continue acquiring companies. Although we made no acquisitions in 2024, in 2023,
we acquired Silver Crystal, Lion Brothers and Thermopatch for aggregate purchase consideration of approximately
$231 million. The success of any acquisition depends on the ability of the combined company to realize the anticipated
benefits from combining our businesses. Realizing these benefits depends, in part, on maintaining adequate focus on
executing the business strategies of the combined company as well as the successful integration of assets, operations,
functions and personnel. We continue to evaluate acquisition targets and ensure we have a pipeline of potential
opportunities.
Various risks, uncertainties and costs are associated with acquisitions. Effective integration of systems, controls,
employees, product lines, market segments, customers, suppliers and production facilities and cost savings can be
difficult to achieve and the success of integration activities can be uncertain. While we have not experienced significant
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issues with our recent acquisitions, if management of our combined company is unable to minimize the potential
disruption of the combined company’s ongoing business during the integration process, the anticipated benefits of any
acquisition may not be fully realized. In addition, the inability to successfully manage the implementation of appropriate
systems, policies, benefits and compliance programs for the combined company could have a material adverse effect on
our business. We may not be able to retain key employees of an acquired company or achieve the projected performance
targets for the business into which an acquired company is integrated. Both before and after the closing of an acquisition,
our business and that of the acquired company may suffer due to uncertainty or diversion of management attention.
Future acquisitions could result in increased debt, dilution, liabilities, interest expense, restructuring charges and
amortization expenses related to intangible assets. There can be no assurance that acquisitions will be successful,
contribute to our profitability or drive accretive returns. Further, we may not be able to identify additional value-accretive
acquisition targets that can advance our strategies or be able to successfully execute additional acquisitions in the future.
A significant consolidation of our customer base could negatively impact our business.
A significant consolidation of our customer base could negatively impact our business. While our customer base
tends to be highly fragmented, in recent years, some of the converter customers served by our Materials Group reportable
segment have consolidated and integrated vertically and some of our largest customers have acquired companies with
similar or complementary product lines. Industry consolidation could continue to increase the concentration of our
business with our largest customers. Further consolidation may be accompanied by pressure from customers for us to
lower our selling prices. While we have been generally successful at managing customer consolidations in the past,
increased pricing pressures from our customers could have a material adverse effect on our business.
Because some of our products are sold by third parties, our business depends in part on the financial condition of
these parties and their customers.
Some of our products are sold not only by us, but also by third-party distributors. Some of our distributors also
market products that compete with our products. Changes in the financial or business conditions, including economic
weakness, market trends or industry consolidation, or the purchasing decisions of these distributors or their customers
could materially adversely affect our business.
Our reputation, sales, and earnings could be materially adversely affected if the quality of our products and services
does not meet customer expectations. In addition, product liability claims or regulatory actions could materially
adversely affect our business and reputation.
There are times when we experience product quality issues resulting from defective materials, manufacturing,
packaging or design. These issues are often discovered before shipping, causing delays in shipping, delays in the
manufacturing process, or, occasionally, cancelled orders. When issues are discovered after shipment, they may result in
additional shipping costs, discounts, refunds or loss of future sales. Both pre-shipping and post-shipping quality issues
could have a material adverse effect on our business and negatively impact our reputation.
Claims for losses or injuries purportedly caused by some of our products arise in the ordinary course of our
business. Although we maintain product liability insurance coverage, claims are subject to a deductible or may not be
covered under the terms of the policy. In addition to the risk of substantial monetary judgments and penalties that could
have a material adverse effect on our business, product liability claims or regulatory actions could result in negative
publicity, reputational harm and loss of brand value. We also could be required to recall and possibly discontinue the sale
of products deemed to be defective or unsafe, which could result in adverse publicity and significant expense.
Changes in our business strategies and the restructuring of our operations affect our costs and the profitability of our
businesses. In addition, our profitability may be materially adversely affected if we generate less productivity
improvement from our restructuring and other cost reduction actions than anticipated.
As our business environment changes, we have adjusted and may need to further adjust our business strategies or
restructure our operations or particular businesses. As we continue to develop and adjust our growth strategies, we may
invest in new businesses that have short-term returns that are negative or low and whose ultimate business prospects
are uncertain or could be unprofitable.
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We engage in restructuring actions from time to time to reduce our costs and increase efficiencies. We expended
approximately $42 million in 2024 compared to $79 million for restructuring actions in 2023. Our restructuring actions in
2024 related to various locations across our company, primarily in our Solutions Group reportable segment. Our
restructuring actions in 2023 included a restructuring plan to further optimize the European footprint of our Materials
Group reportable segment. We had incremental savings from restructuring actions, net of transition costs, of
approximately $63 million in 2024. As part of our continuous efficiency improvement culture, we intend to continue our
efforts to reduce costs, which have in the past included, and may continue to include, facility closures and square footage
reductions, headcount reductions, organizational restructuring, process standardization, and manufacturing relocation.
The success of these efforts is not assured and targeted savings may not be realized. In addition, cost reduction actions
can result in restructuring charges and could expose us to production risk, loss of sales and employee turnover. We
cannot provide assurance that we will achieve the intended results of any of our restructuring and other cost reduction
actions, which involve operational complexities, consume management attention and require substantial resources and
effort. If we fail to achieve the intended results of such actions, our costs could increase, our assets could be impaired, and
our returns on investments could be lower.
Our ability to develop and successfully market new products and applications impacts our competitive position.
The timely introduction of new products and improvements to current products helps determine our success. Many
of our current products are the result of our research and development efforts, for which we expensed $138 million in
2024. These efforts are directed primarily toward developing new products and solutions and operating techniques and
improving product performance, often in close association with our customers or end users. These efforts include patent
and product development work relating to printing and coating technologies, as well as adhesive, release and ink
chemistries in our Materials Group reportable segment. We focus on research projects related to RFID, external
embellishments and digital solutions in our Solutions Group reportable segment. Additionally, our research and
development efforts include sustainable innovation and design of products that increase the use of recycled content,
reduce waste, extend life or enable recycling. Research and development requires innovation and anticipation of market
trends, which means that the costs of these expenditures may not be recovered through additional sales. We could focus
on products that ultimately are not accepted by customers or end users or we could experience delays in the production
or launch of new products that could compromise our competitive position.
Our infrastructure needs impact our business and expenditures.
We continue to invest in our long-term growth and margin expansion plans, with approximately $240 million in
capital expenditures, including fixed assets and information technology, in 2024. We may not be able to recoup the costs
of our infrastructure investments if actual demand is not as we anticipate. In recent years, we expanded our Materials
Group’s manufacturing capabilities in France, India and Ohio; moved our Solutions Group’s Vietnam business into a new,
expanded facility; and made additional investments in both capacity and business development globally for our Intelligent
Labels platform, including new facilities in Brazil and consolidated operations in Mexico. In addition, we added capacity
through our acquisitions of Silver Crystal, Lion Brothers and Thermopatch in 2023. Infrastructure investments, which are
long-term in nature, may not generate the expected return due to changes in the marketplace, failures in execution, and
other factors. Significant changes from our expected need for and/or returns on our infrastructure investments could
materially adversely affect our business.
Difficulty in the collection of receivables as a result of economic conditions or other market factors could have a
material adverse effect on our business.
Although we have processes to administer credit granted to customers and believe our allowance for credit losses
is adequate, we have in the past had to increase the allowance due to, among other things, epidemics, pandemics or
other outbreaks of illness, supply chain challenges, regulatory restrictions and inflationary pressures, and in the future
may experience losses as a result of our inability to collect some of our accounts receivable. A customer’s financial
difficulties are likely to result in reduced business with that customer. We may also assume higher credit risk relating to
receivables of a customer experiencing financial difficulty. If these developments were to occur widely in our customer
base, our inability to collect on our accounts receivable from customers could substantially reduce our cash flows and
income and have a material adverse effect on our business.
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There is a rapidly evolving awareness and focus from certain stakeholders, including our investors, customers and
employees, with respect to our company’s sustainability and governance practices, which could affect our business.
Investor and societal expectations with respect to sustainability or governance matters continue to evolve, with some
stakeholders seeking companies to demonstrate progress with respect to environmental stewardship, human capital,
corporate governance, support for our communities, and transparency, and other stakeholders suggesting that companies
focus on delivering for their stockholders to the exclusion of focus in these other areas. A failure to adequately meet evolving
stakeholder expectations and timely comply with competing regulatory requirements at the federal, state and local levels could
result in loss of business, diluted market valuation, an inability to attract and retain customers and personnel, increased
negative investor sentiment toward us and/or our customers and the diversion of investment to other industries, which could
have a negative impact on our stock price and access to and cost of capital.
Risks Related to Information Technology
Significant disruption to the information technology infrastructure that stores our information and runs our
operations could materially adversely affect our business.
We rely on the efficient and uninterrupted operation of a large and complex information technology infrastructure to
link our global business. Like all information technology systems, ours are susceptible to a number of risks including, but not
limited to, damage or interruptions resulting from obsolescence, natural disasters, power failures, human error, viruses, social
engineering, phishing, ransomware or other malicious attacks and cybersecurity events. We upgrade and install new systems,
which, if installed or programmed incorrectly or on a delayed timeframe, could cause delays or cancellations of customer
orders, impede the manufacture or shipment of products, or disrupt the processing of transactions. We have continued to
implement measures to mitigate our risk related to system and network disruptions, but if a significant disruption were to
occur, we could incur losses and remediation costs that could have a material adverse effect on our business.
Additionally, we rely on services provided by third-party vendors for certain information technology processes,
including system infrastructure management, application management, and software as a service. While we have matured our
cybersecurity due diligence process, this reliance on third parties makes our operations vulnerable to a failure by any one of
these vendors to perform adequately or maintain effective internal controls.
Cybersecurity or other security breaches could compromise our information and expose us to liability, which could
have a material adverse effect on our business and reputation.
We maintain information necessary to conduct our business in digital form, which is stored in data centers and on our
networks and third-party cloud services, including confidential and proprietary information as well as personal information
regarding our customers and employees. The secure maintenance of this information is critical to our operations. Data
maintained in digital form and on cloud services is subject to the risk of intrusion, tampering and theft. We develop and
maintain systems and processes at significant cost to prevent this from occurring, and conduct ongoing monitoring and
updating as technologies change and efforts to overcome security measures become more sophisticated. We experience
non-material cybersecurity events each year that are escalated through our documented and tested security incident response
plan, and although we have not experienced a significant breach in recent years, the possibility of intrusion, tampering and
theft cannot be eliminated entirely. Our information technology and infrastructure are vulnerable to attacks by threat actors or
system compromises due to employee error, malfeasance or other disruptions, and the threat landscape remains challenging
with our digital business transformation, remote or hybrid employees, the increasing use of artificial intelligence (“AI”), and
interconnected supply chains expanding the risk of attack. Threat actors are increasingly leveraging AI for cyberattacks, and
our increasing use of AI carries risks related to data security, privacy events, and potential algorithmic bias. These AI risks
could lead to operational disruptions, regulatory investigations or actions, data security events and potential financial loss.
We also perform cybersecurity due diligence and mitigate identified risks during our M&A due diligence process;
however, there is still a risk that a recent or future acquisition experiences an event that could lead to a breach before
risks are able to be mitigated. Additionally, we provide confidential, proprietary and personal information to third parties
when it is necessary to pursue business objectives. While we obtain written agreements and assurances that these third
parties will protect this information and, where appropriate, assess the protections utilized by these third parties, we are
aware of suppliers in our ecosystem who have experienced security events, and there is a risk the confidentiality of data
held by third parties may be compromised.
Breaches or attacks can compromise our network, the network of a third party to whom we have disclosed
confidential, proprietary or personal information, a data center where we have stored such information or a third-party
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cloud service provider, and the information stored there could be accessed, publicly disclosed, lost or stolen. Any access,
disclosure or loss of information could disrupt our operations, impair our ability to conduct business, result in legal claims
or proceedings, damage our reputation, or result in the loss or diminished value of profitable opportunities and the loss of
revenue as a result of unlicensed use of our intellectual property. Contractual provisions with third parties, including cloud
service providers, substantially limit our ability to fully recover our losses. If the personal information of our customers or
employees were to be misappropriated, we could incur costs to compensate our customers or employees or pay damages
or fines as a result of litigation or regulatory actions and our reputation with our customers and employees could be
injured, resulting in loss of business or decline in morale. Data privacy legislation and regulation have been increasing in
recent years – including, for example, the General Data Protection Regulation in the EU, the Personal Information
Protection Law in China, the General Data Protection Law in Brazil and the state of California’s Privacy Rights Act – and
although we have made reasonable efforts to comply with all applicable laws and regulations, there can be no assurance
that we will not be subject to regulatory action in the event of a data privacy violation.
Cybersecurity risk and ransomware attacks on companies continue to significantly increase and there can be no
assurance that we have fully protected our information, that third parties to whom we have disclosed such information or
with whom we have stored such information (in data centers and in the cloud) have taken effective precautions, or that
we will not experience hacking or intrusion attempts that could have a material adverse effect on our business. In addition
to maintaining a comprehensive set of endpoint, network, email and cloud security solutions, we continue to take steps to
further improve the security of our networks and systems, including further strengthening authentication; continuing to
mature our zero trust architecture and strategy; maturing our operational technology security program; furthering our
advanced prevention and detection measures; further enhancing and testing our security incident response plan;
upgrading legacy systems to simplify and standardize business processes and applications; implementing more robust
cloud security across multiple platforms; adopting AI policies, governance and risk management; continuously improving
information technology project and portfolio management discipline; enhancing accountability with more aggressive key
performance indicator targets; continuing to mature our data loss prevention framework to protect our critical data,
network and site access controls; advancing our user access management program; limiting USB drive access across our
company; increasing network segmentation; enhancing our focus on third party risk management; and improving our
capabilities based on threat intelligence and the publicized incidents experienced by other companies, as well as ones
that we have experienced despite their minimal operational or financial impact to date.
Risks Related to Income Taxes
Changes in our tax rates affect our business.
Our effective tax rate is affected by changes in the mix of earnings in countries with differing statutory tax rates,
changes in the valuation of deferred tax assets and liabilities, or changes in tax laws and regulations or their
interpretation. The impact of these changes could materially impact our business.
Legislation implementing changes in taxation of business activities, adoption of other corporate tax policies, or other
changes in tax legislation impact our business.
The prevention of base-erosion and tax transparency continue to be high priorities for many tax jurisdictions
worldwide. As a result, policies regarding corporate income and other taxes remain under heightened scrutiny globally.
Due to the size of our international business activities, any substantial change in corporate tax policies, enforcement
activities or legislative or regulatory actions could have a material adverse effect on our business.
Additionally, the U.S. Congress and Presidential administration are currently controlled by the same political party,
and have indicated a desire to extend or make permanent certain tax provisions of the 2017 Tax Cuts and Jobs Act, as
well as potentially introduce other changes in tax laws and regulations. The timing and impact of such potential changes
are uncertain and may materially impact our effective tax rate.
The amount of various taxes we pay is subject to ongoing compliance requirements and audits by federal, state and
foreign tax authorities.
We are subject to regular examinations of our income tax returns by various tax authorities. We regularly assess
the likelihood of material adverse outcomes resulting from these examinations to determine the adequacy of our provision
for taxes. In addition, tax enforcement has become increasingly aggressive in recent years focused primarily on transfer
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pricing and intercompany documentation. Our estimate of the potential outcome of uncertain tax issues requires
significant judgment and is subject to our assessment of relevant risks, facts, and circumstances existing at the time. We
use these assessments to determine the adequacy of our provision for income taxes and other tax-related accounts. Our
results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are
made or resolved, which may materially adversely affect our effective tax rate.
We have deferred tax assets that we may not be able to realize under certain circumstances.
If we are unable to generate sufficient taxable income in certain jurisdictions, or if there is a significant change in
the time period within which the underlying temporary differences become taxable or deductible, we could be required to
increase our valuation allowances against our deferred tax assets. This would increase our effective tax rate and could
have a material adverse effect on our business. In addition, changes in statutory tax rates may change our deferred tax
asset or liability balances, with either a favorable or unfavorable impact on our effective tax rate. A significant portion of
our indefinite-lived net operating loss carryforwards is concentrated in Luxembourg and may require decades to be fully
utilized under our current business model. Decreases in the statutory tax rate or changes in our ability to generate
sufficient future taxable income in Luxembourg could materially adversely affect our effective tax rate. In addition, the
computation and assessment of the realizability of our deferred tax assets may also be materially impacted by new
legislation or regulations.
Risks Related to Human Capital
For us to remain competitive, deliver on our business strategy and avoid business disruption, it is important to recruit
high caliber talent, retain key management and highly-skilled employees and receive high quality service from all
outsourced service providers. This includes providing market-competitive compensation and benefits and ensuring
an engaged global team.
Competition to recruit and retain critical talent has increased in recent years. Our ongoing productivity efforts and
restructuring actions can increase this challenge. When it comes to our outsourced service providers, we have
experienced delays or errors and reduced resource availability and manage ongoing risk when it comes to people,
processes and software.
Executive succession planning is critical to our long-term success. We experienced several recent key
management changes, including the appointments of our President, Materials Group, and Interim Chief Financial Officer in
2024 and our President/Chief Executive Officer and President, Solutions Group in 2023; in each case, the individuals
appointed to these positions were long-serving and experienced leaders at our company. While we believe we have
appropriate leadership development programs and succession plans in place that are regularly discussed with our Board’s
Talent and Compensation Committee, any failure to ensure effective leadership transitions and knowledge transfer
involving key management (or other highly-skilled employees) could hinder our strategic planning and execution.
We have various non-U.S. collective labor arrangements, which make us subject to potential work stoppages, as well
as union and works council campaigns and other labor disputes, any of which could adversely impact our business.
Work interruptions or stoppages at our company or our suppliers could significantly impact our ability to deliver for
our customers. In addition, collective bargaining agreements, union contracts and labor laws may impair our ability to
reduce labor costs by closing or downsizing manufacturing facilities because of limitations on personnel and salary and
other restrictions. A work stoppage at one or more of our facilities, or the facilities of our customers or suppliers, could
have a material adverse effect on our business.
In addition, the recent and ongoing geopolitical unrest and weather-related effects of climate change in numerous
regions could impact the safety and productivity of our employees. Those impacts could also hinder our ability to recruit
and grow our talent pools in the impacted regions/countries.
Risks Related to Our Indebtedness
If our indebtedness increases significantly or our credit ratings are downgraded, we may have difficulty obtaining
acceptable short- and long-term financing.
At December 28, 2024, we had approximately $3.15 billion of debt. Our level of indebtedness and credit ratings
are significant factors in our ability to obtain short- and long-term financing. Significantly unfavorable changes in our debt
Avery Dennison Corporation | 2024 Annual Report
15

leverage position and/or lower credit ratings could negatively impact our ability to issue debt at favorable terms to
support our business needs and result in higher financing costs. A downgrade of our short-term credit ratings could
impact our ability to access the commercial paper markets and increase our borrowing costs on commercial paper or
alternative funding sources, including our revolving credit facility (the “Revolver”) or other credit facilities. If our access to
commercial paper markets were to become limited, we would need to obtain short-term funding under our Revolver,
which would result in the same exposure to variable interest rates.
An increase in interest rates adversely affects our business.
In 2024, our average variable-rate borrowings were approximately $400 million. Increases in short-term interest
rates directly impact the amount of interest we pay. Fluctuations in interest rates can increase our borrowing costs and
have a material adverse effect on our business.
In recent years, the U.S. Federal Reserve and similar monetary policymaking entities around the world significantly
raised interest rates in an effort to curb rising inflation across the globe, beginning to modestly reduce rates in 2024. As
of December 28, 2024, the U.S. Federal Reserve’s benchmark interest rate was between 4.25% and 4.50%, down from
between 5.25% and 5.50% the same time in 2023. When long- and short-term interest rates rise, our borrowing costs
increase. Continued increases in interest rates could, among other things, reduce the availability and/or increase the costs
of obtaining new debt and refinancing existing indebtedness and negatively impact our business.
Our current and future debt covenants may limit our flexibility.
Our credit facilities and the indentures governing our medium- and long-term notes contain, and any of our future
indebtedness likely would contain, restrictive covenants that impose operating and financial restrictions on us. Among
other things, these covenants restrict our ability to incur additional indebtedness, incur certain liens on our assets, make
certain investments, sell our assets or merge with third parties, or enter into certain transactions. The Revolver contains a
financial covenant that requires us to maintain a maximum leverage ratio. Refer to Item 7. “Management’s Discussion and
Analysis of Financial Condition and Result of Operations”, ”Capital Resources” of this Annual Report on Form 10-K for
more information about this financial covenant. These restrictive covenants and ratios may limit or prohibit us from
engaging in certain activities and transactions that may be in our best interest, which could materially adversely affect our
business. The failure to comply with these or other covenants governing other indebtedness, including indebtedness
incurred in the future, could result in an event of default, which, if not cured or waived, could have a material adverse
effect on our business, financial condition and result of operations, including cross-defaults to other debt facilities.
Risk Related to Ownership of Our Stock
Our stock price is subject to significant variability.
Changes in our stock price, among other things, affect our access to, or cost of financing from, capital markets, our
stock-based compensation arrangements and our effective tax rate. Our stock price, which increased significantly during
the second half of 2023 and the first half of 2024 but declined during the second half year of 2024, is influenced by
changes in the overall stock market and demand for equity securities in general. Other factors, including our financial
performance on an absolute basis and relative to peer companies and competitors, as well as market expectations of our
performance, the level of perceived growth or profit of our industries, and other company-specific factors, may also
materially adversely affect our stock price. There can be no assurance that our stock price will not continue to experience
significant variability in the future.
We cannot guarantee that we will continue to repurchase shares of our common stock or pay dividends on our
common stock or that repurchases will enhance long-term stockholder value. Changes in our levels of stock
repurchases or dividends could affect our stock price and increase its variability.
In April 2022, our Board authorized the repurchase of shares of our common stock with a fair market value of up to
$750 million, in addition to the amount of shares that were then available for repurchase under our previous Board
authorization. In 2024, we repurchased 1.2 million shares of our common stock at an aggregate cost of $247.5 million. As
of December 28, 2024, shares of our common stock in the aggregate amount of $346.9 million remained authorized for
repurchase under this Board authorization. We repurchase shares through a variety of methods, which may include open
market purchases, privately negotiated transactions, block trades or accelerated share repurchase transactions. Our share
16
2024 Annual Report | Avery Dennison Corporation

repurchase authorizations do not obligate us to acquire any specific number of shares or to repurchase any specific
number of shares for any fixed period. The timing and amount of our repurchases, if any, are subject to our capital
allocation strategy as it may evolve from time to time, our view of intrinsic value coupled with a disciplined repurchase
grid, market and economic conditions, applicable legal requirements and other relevant factors. We may limit, suspend or
discontinue repurchasing shares at any time at our discretion without prior notice.
Paying a sustainable dividend is a key part of our capital allocation strategy. Although we increased our quarterly
dividend rate by approximately 9% in April 2024, there can be no assurance that we will maintain this rate or approve
further increases in the future. Future dividends are subject to market and economic conditions, applicable legal
requirements and other relevant factors. We are not obligated to continue declaring dividends, and our payment of
dividends could be suspended or discontinued at any time at our discretion. We will continue to retain future earnings to
develop our business, as opportunities arise, and evaluate the amount and timing of future dividends based on our
operating results, financial condition, capital allocation strategies and general business conditions. The amount and timing
of any future dividends may vary, and the payment of any dividend does not assure that we will pay dividends in the
future.
In addition, any future repurchases of our common stock or payment of dividends, or any determination to cease
repurchasing stock or paying dividends, could affect our stock price and significantly increase its variability. Additionally,
any future repurchases of our common stock or payment of dividends could impact our ability to invest in our businesses
or pursue acquisitions and venture investments. Although our share repurchase program is intended to enhance long-
term stockholder value, there is no assurance that it will do so because the market price of our common stock may decline
below the levels at which we repurchased shares of stock and short-term stock price fluctuations could reduce the
program’s effectiveness.
Risks Related to Legal and Regulatory Matters
Infringing intellectual property rights of third parties or inadequately acquiring or protecting our intellectual property
could harm our ability to compete or grow.
Because our products involve complex technology and chemistry, we are involved from time to time in litigation
involving patents and other intellectual property. Parties have filed, and in the future may file, claims against us alleging
that we have infringed their intellectual property rights. We were party to a litigation, which we settled in 2024, in which
ADASA Inc. (“Adasa”), an unrelated third party, alleged that certain of our RFID products within our Solutions Group
reportable segment infringed its patent. For more information on this litigation, see Note 8, “Contingencies,” in the Notes
to Consolidated Financial Statements. If we are held liable for infringement in other matters, we could be required to pay
damages, obtain licenses or cease making or selling certain products. There can be no assurance that licenses would be
available on commercially reasonable terms or at all. The defense of these claims, whether or not meritorious, or the
development of new technologies is costly and diverts the attention of management.
We also have valuable intellectual property upon which third parties may infringe. We seek to protect and restrict
access to our intellectual property and proprietary information by relying on the patent, trademark, copyright and trade
secret laws of the U.S. and other countries, as well as non-disclosure agreements. However, it may be possible for a third
party to obtain our information without our authorization, independently develop similar technologies, or breach a
non-disclosure agreement entered into with us. In addition, many of the countries in which we operate do not have
intellectual property laws as protective as those in the U.S. The use of our intellectual property by someone else without
our authorization could reduce or eliminate certain competitive advantages we have, cause us to lose sales or otherwise
harm our business. Further, the costs associated with protecting our intellectual property rights could materially adversely
impact our business.
We have obtained and applied for U.S. and foreign trademark registrations and patents, and will continue to
evaluate whether to register additional trademarks and apply for additional patents. We cannot guarantee that any of our
pending applications will be approved by the applicable governmental authorities. Further, we cannot assure that the
validity of our patents or our trademarks will not be challenged. In addition, third parties may be able to develop
competing products using technology that avoids our patents.
Avery Dennison Corporation | 2024 Annual Report
17

Unfavorable developments in legal proceedings, investigations and other legal and regulatory matters, could impact
us in a materially adverse manner.
There can be no assurance that any outcome of any litigation, investigation or other legal, environmental,
compliance and regulatory matter will be favorable. Our financial results could be materially adversely affected by an
unfavorable outcome to pending or future litigation and investigations, and other legal, regulatory, environmental and
compliance matters. See Note 8, “Contingencies,” in the Notes to Consolidated Financial Statements for more
information.
We are required to comply with anti-corruption and other compliance laws and regulations of the U.S. government
and various international jurisdictions, and our failure to comply with these laws and regulations could have a
material adverse effect on our business.
We are required to comply with the anti-corruption and other compliance laws and regulations of the U.S.
government and various international jurisdictions, such as the U.S. Foreign Corrupt Practices Act and the UK’s Bribery
Act of 2010. If we fail to comply with anti-corruption laws, we could be subject to substantial civil and criminal penalties,
including fines, monetary damages and incarceration for responsible employees and managers. In addition, if our
distributors or agents fail to comply with these laws, our business may also be materially adversely affected through
reputational harm and penalties.
We are required to comply with environmental, health, and safety laws at our operations around the world. The costs
of complying with these laws is significant and increasing.
We are subject to national, state, provincial and/or local environmental, health, and safety laws and regulations in
the U.S. and other countries in which we operate, including those related to the disposal of hazardous waste and GHG
emissions from our manufacturing processes. These laws, which are continually evolving and imposing additional
requirements on our current and former manufacturing facilities, impose liability for the costs of, and damages resulting
from, cleaning up current sites, past spills, disposals and other releases of hazardous substances. Enforcement of these
laws can be unclear and is subject to the discretion of governmental agencies. Any failure to comply with existing and
future environmental, health and safety laws could subject us to fees, penalties, costs or liabilities, impact our production
capabilities, limit our ability to sell, expand or acquire facilities, and have a material adverse effect on our business. Laws
and regulations related to the environment, product content and product safety are complex, change often, and can be
open to different interpretations. In addition, we could be materially and adversely impacted by any environmental or
product safety enforcement action affecting our suppliers, particularly in emerging markets.
We have accrued liabilities for the environmental clean-up of certain sites where it is probable that a loss will be
incurred and the cost or amount of loss can be reasonably estimated, including the ten sites for which U.S. governmental
agencies have designated us as a potentially responsible party as of our 2024 fiscal year-end. Because of the
uncertainties associated with environmental assessment and remediation activities, the actual expense to remediate
currently identified sites could be higher than the liabilities accrued and additional sites could be identified in the future.
See Note 8, “Contingencies,” in the Notes to Consolidated Financial Statements for more information.
We are subject to export and import control laws and regulations in the jurisdictions in which we do business that
could subject us to liability or impair our ability to compete in these markets.
Export control laws and economic sanctions prohibit the shipment of some of our products to embargoed or
sanctioned countries, governments and persons. While we train our employees to comply with these regulations, use
third party screening software, and take other measures, we cannot guarantee that a violation will not occur. A prohibited
shipment has negative consequences, including government investigations, penalties, fines, civil and criminal sanctions
and/or reputational harm. Any change in export or import regulations, economic sanctions or related legislation, shift in
the enforcement or scope of existing regulations, or change in the countries, governments, persons or technologies
targeted by such regulations, could decrease our ability to export or sell our products internationally. Any limitation on our
ability to export or sell our products could materially adversely affect our business.
Some of our products are subject to export control laws and regulations and may be exported only with an export
license or through an applicable export license exception. If we fail to comply with export licensing, customs regulations,
economic sanctions or other laws, we could be subject to substantial civil or criminal penalties, including fines, criminal
charges against responsible employees and loss of export or import privileges. In addition, if our distributors fail to obtain
appropriate import, export or re-export licenses or permits, we may also be materially adversely affected through
18
2024 Annual Report | Avery Dennison Corporation

reputational harm and penalties. Obtaining the necessary export license for a particular sale may be time consuming and
expensive and could result in the delay or loss of sales opportunities.
Risks Related to Other Financial Matters
Our pension assets and liabilities are significant and subject to market, interest and credit risk that may reduce their
asset values or increase their liability values, either of which could increase our net pension liability.
Changes in the value of our pension assets, which was approximately $660 million as of December 28, 2024,
could materially adversely affect our earnings and cash flows as a result of a decline in the value of our investments due
to increases in interest rates or volatility in financial markets. In addition, our pension liabilities, which were approximately
$709 million as of December 28, 2024, are subject to interest and inflation risk that may increase their value. We
regularly evaluate options to better manage the volatility associated with our pension assets and liabilities and may
continue taking actions to reduce the financial volatility associated with our pension liabilities, which could result in
significant charges. Although we mitigate these risks by investing in high quality securities, ensuring adequate
diversification of our investment portfolio, monitoring our portfolio’s overall risk profile and managing its liability profile,
our net pension liability may nevertheless increase.
The actuarial assumptions used for valuation purposes affect our earnings and cash flows. Changes in accounting
standards and government regulations could also affect our pension and postretirement plan expense and funding
requirements.
We evaluate the assumptions used in determining projected benefit obligations and the fair value of plan assets
for our non-U.S. pension plans and other postretirement benefit plans in consultation with outside actuaries. Our pension
and projected postretirement benefit expenses and funding requirements increase or decrease as a result of the
assumptions we use, including the discount rate, expected long-term rate of return or mortality rates. Because of
changing market conditions or changes in participant populations, the actuarial assumptions that we use may differ from
actual results, which could have a significant impact on our pension and postretirement benefit obligations and related
costs. Funding obligations for each plan are determined based on the value of assets and liabilities on a specific date in
accordance with applicable government regulations. Our pension funding requirements, and the timing of funding
payments, could also be affected by future legislation or regulation. We are implementing plans to comply with the Dutch
Pension Act passed in 2023, which requires traditional defined benefit plans to be phased out and transition to defined
contribution plans before January 1, 2028. Our Dutch defined benefit plan includes a minimum guaranteed funding ratio
that will have to be terminated as part of the transition, for which we will have to compensate the Dutch Pension Fund.
An impairment in the carrying value of goodwill could negatively impact our results of operations and net worth.
Goodwill is initially recorded at fair value and not amortized and is reviewed for impairment annually (or more
frequently if impairment indicators are present). As of December 28, 2024, the carrying value of our goodwill was
$1.98 billion. In 2024, we determined that the goodwill of our reporting units was not impaired. We review goodwill for
impairment by comparing the fair value of a reporting unit to its carrying value, calculating goodwill valuations primarily
using an income approach based on the present value of projected future cash flows of each reporting unit. In assessing
fair value, we make estimates and assumptions about sales, operating margins, growth rates, and discount rates based
on our business plans, economic projections, anticipated future cash flows and marketplace data. There are inherent
uncertainties related to these factors and management’s judgment in applying these factors. We could be required to
evaluate the carrying value of goodwill prior to the annual assessment if we experience disruptions to our business,
unexpected significant declines in operating results, divestiture of a significant component of our business or sustained
market capitalization declines. These types of events could result in goodwill impairment charges in the future, which
could materially adversely affect our business in the periods in which they are made.
Item 1B. UNRESOLVED STAFF COMMENTS
None.
Avery Dennison Corporation | 2024 Annual Report
19

Item 1C. CYBERSECURITY
Cybersecurity Risk Management and Strategy
Our cybersecurity risk management program, which is designed to protect the confidentiality, integrity and
availability of our critical systems and information, includes a comprehensive cybersecurity incident response plan.
We design and assess our program based on the ISO 27000 and the National Institute of Standards and
Technology (NIST) SP-800 and Cybersecurity Framework. We use these frameworks to help us identify, assess and
manage cybersecurity risks relevant to our business and do not intend to suggest that we meet any particular technical
standards, specifications or requirements.
Our cybersecurity risk management program complements our overall enterprise risk management program, using
similar methodologies and governance processes to identify risks and mitigating strategies.
Our cybersecurity risk management program includes risk assessments designed to help identify potentially
material cybersecurity risks to our critical systems, information, products and services, as well as our broader enterprise
information technology environment; an information technology security team principally responsible for managing our
cybersecurity risk assessment processes, security controls and response to any cybersecurity events; the use of third
party experts and service providers, where appropriate, to assess, test and otherwise assist with protecting our security
environment; cybersecurity awareness training for our employees and further training for our incident response personnel
and senior management; a cybersecurity incident response plan that includes procedures for assessing and coordinating
our response to cybersecurity events; and a third-party risk management process for service providers, suppliers and
vendors.
We have not experienced cybersecurity events that have materially affected our operations, results of operations,
or financial condition. However, we face certain ongoing risks from cybersecurity threats that, if realized, would be
reasonably likely to materially affect us, including our operations, results of operations, or financial condition.
Risks and uncertainties related to cybersecurity are discussed in greater detail under “Risks Related to Information
Technology” in Item 1A of this report.
Cybersecurity Governance
Our Board of Directors (our “Board”) considers cybersecurity risk as part of its risk oversight function and has
delegated to the Audit Committee primary responsibility for overseeing our cybersecurity risk management program and
engaging with management on cybersecurity and other risks related to our information technology controls and security.
Our Information Security Officer (“ISO”) reports directly to our Chief Information Officer (“CIO”), a member of our
Company Leadership Team and direct report of our Chief Executive Officer (“CEO”). The CIO and ISO together provide
updates and discuss our cybersecurity preparedness with the Audit Committee at least semiannually, which its Chair then
reports on to our full Board. Management updates the Audit Committee, if and as needed, regarding any significant
cybersecurity events, as well as events that may have had lesser potential impact.
Our cybersecurity leadership team (“CSLT”), which includes leaders accountable for security operations, incident
response, risk and compliance, data security, application security, digital solutions security, vulnerability management and
operational technology security, is responsible for assessing and managing our risks from cybersecurity threats. The team
has primary responsibility for our overall cybersecurity risk management program and supervises both our internal
cybersecurity personnel and our external cybersecurity consultants. Information security personnel maintain a variety of
technical and managerial security certifications and have broad security experience in manufacturing, finance, software
and information technology environments.
The CSLT supervises our efforts to prevent, detect, mitigate and remediate cybersecurity risks and incidents
through a variety of means, which may include briefings from internal security personnel; threat intelligence and other
information obtained from governmental, public or private sources, including external consultants; and reports from
cybersecurity systems deployed in our information technology environment.
20
2024 Annual Report | Avery Dennison Corporation

Item 2. PROPERTIES
As of December 28, 2024, we operated manufacturing facilities in excess of 100,000 square feet in the reportable
segments and locations listed below.
Materials Group
U.S.
Peachtree City, Georgia; Greenfield and Lowell, Indiana; Fairport Harbor, Mentor, Oak Harbor, and
Painesville, Ohio; and Mill Hall, Pennsylvania
Non-U.S.
Soignies and Turnhout, Belgium; Vinhedo, Brazil; Guangzhou, Kunshan, and Zhuozhou, China;
Champ-sur-Drac, France; Gotha, Germany; Pune and Noida, India; Longford, Ireland; Kibbutz
Hanita, Israel; Chungju, South Korea; Rodange, Luxembourg; Bangi, Malaysia; Queretaro, Mexico;
Rayong, Thailand; and Cramlington, United Kingdom
Solutions Group
U.S.
Fort Wayne, Indiana; New Century, Kansas; Miamisburg, Ohio; and Nashville, Tennessee
Non-U.S.
Dhaka, Bangladesh; Guangzhou, Nansha, Ningbo, Panyu, Shenzhen, and Suzhou, China; Ancarano,
Italy; Kulim, Malaysia; Queretaro, Mexico; and Long An Province, Vietnam
In addition to the manufacturing facilities described above, our other principal facilities include our corporate
headquarters and divisional office in Mentor, Ohio and our divisional and corporate offices located in Dallas, Texas;
Vinhedo, Brazil; Hong Kong and Kunshan, China; and Oegstgeest, the Netherlands.
We own all of the principal properties identified above, except for the facilities in the following locations, which are
leased: New Century, Kansas; Mentor, Ohio; Nashville, Tennessee; Hong Kong, Ningbo, Panyu, Shenzhen and Zhuozhou,
China; Kibbutz Hanita, Israel; and Oegstgeest, the Netherlands.
We consider all our properties, whether owned or leased, suitable and adequate for our current needs. We
generally expand production capacity as needed to meet increased demand. Owned buildings and plant equipment are
insured against major losses from fire and other usual business risks, subject to applicable deductibles. We are not aware
of any material defects in title to, or significant encumbrances on, our properties, except for certain mortgage liens.
Item 3. LEGAL PROCEEDINGS
See Note 8, “Contingencies,” in the Notes to Consolidated Financial Statements.
Item 4. MINE SAFETY DISCLOSURES
Not applicable.
Avery Dennison Corporation | 2024 Annual Report
21

PART II
Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES
(a)
Our common stock is listed under the ticker symbol “AVY” on the New York Stock Exchange. We did not sell
securities in any unregistered transactions during fiscal year 2024. We have historically paid quarterly cash
dividends. Future dividend payments are subject to the approval by our Board of Directors based on our earnings,
capital requirements, financial condition and other factors.
We had 3,391 shareholders of record as of December 28, 2024, the last day of our 2024 fiscal year.
Stockholder Return Performance
The graph below compares the cumulative stockholder return on our common stock, including reinvestment of
dividends, with the return on the S&P 500 Stock Index, S&P 500 Industrials Index and Dow Jones U.S. Container &
Packaging Index, in each case for the five-year period ending December 31, 2024.
$50
$100
$150
$200
$250
12/31/2019
12/31/2020
12/31/2021
12/31/2022
12/31/2024
12/31/2023
Avery Dennison
S&P 500 Index
Dow Jones U.S. Container
& Packaging Index
S&P 500 Industrials Index
Total Return Analysis(1)
12/31/2019
12/31/2020
12/31/2021
12/31/2022
12/31/2023
12/31/2024
Avery Dennison
$100
$121
$171
$145
$165
$155
Dow Jones U.S. Container &
Packaging Index
100
121
135
112
120
136
S&P 500 Industrials Index
100
111
135
127
150
176
S&P 500 Index
100
118
152
125
158
197
(1)
Assumes $100 invested on December 31, 2019 and reinvestment of dividends.
(b)
Not applicable.
22
2024 Annual Report | Avery Dennison Corporation

(c)
Repurchases of Equity Securities by Issuer
Repurchases by us or our “affiliated purchasers” (as defined in Rule 10b-18(a)(3) of the Exchange Act) of
registered equity securities in the fourth quarter of 2024 are shown in the table below. Repurchased shares may be
reissued under our long-term incentive plan or used for other corporate purposes.
Period(1)
Total number
of shares
purchased(2)
Average
price paid
per share(3)
Total number of
shares
purchased as
part of publicly
announced
plans(2)(4)
Approximate
dollar value
of shares that
may yet be
purchased
under the
plans(5)
September 29, 2024 – October 26, 2024
105.5
$215.1
105.5
$462.9
October 27, 2024 – November 23, 2024
271.7
203.2
271.7
407.7
November 24, 2024 – December 28, 2024
311.0
195.6
311.0
346.9
Total
688.2
$201.6
688.2
$346.9
(1)
The periods shown are our fiscal months during the thirteen-week quarter ended December 28, 2024.
(2)
Shares in thousands.
(3)
Average price paid per share includes transaction costs to acquire the shares and excludes the non-deductible 1% excise tax on the net value of
repurchases imposed under the Inflation Reduction Act of 2022.
(4)
In April 2022, our Board authorized the repurchase of shares of our common stock with a fair market value of up to $750 million, excluding any fees,
commissions or other expenses related to such purchases, in addition to the amount outstanding under our previous Board authorization. Board
authorizations remain in effect until shares in the amount authorized thereunder have been repurchased.
(5)
Dollars in millions.
Item 6. RESERVED
Avery Dennison Corporation | 2024 Annual Report
23

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
ORGANIZATION OF INFORMATION
Management’s Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, provides
management’s views on our financial condition and results of operations, should be read in conjunction with the
Consolidated Financial Statements and related notes thereto, and includes the sections shown below.
Non-GAAP Financial Measures..................................................................................................................
24
Overview and Outlook .............................................................................................................................
25
Analysis of Results of Operations ...............................................................................................................
28
Results of Operations by Reportable Segment..............................................................................................
30
Financial Condition ..................................................................................................................................
32
Critical Accounting Estimates ....................................................................................................................
38
Recent Accounting Requirements ..............................................................................................................
41
NON-GAAP FINANCIAL MEASURES
We report our financial results in conformity with accounting principles generally accepted in the United States of
America, or GAAP, and also communicate with investors using certain non-GAAP financial measures. These non-GAAP
financial measures are not in accordance with, nor are they a substitute for or superior to, the comparable GAAP financial
measures. These non-GAAP financial measures are intended to supplement the presentation of our financial results
prepared in accordance with GAAP. We use these non-GAAP financial measures internally to evaluate trends in our
underlying performance, as well as to facilitate comparison with the results of competitors for quarters and year-to-date
periods, as applicable. Based on feedback from investors and financial analysts, we believe that the supplemental
non-GAAP financial measures we provide are also useful to their assessments of our performance and operating trends,
as well as liquidity. Reconciliations of our non-GAAP financial measures from the most directly comparable GAAP
financial measures are provided in accordance with Regulations G and S-K.
Our non-GAAP financial measures exclude the impact of certain events, activities or strategic decisions. The
accounting effects of these events, activities or decisions, which are included in the GAAP financial measures, may make
it more difficult to assess our underlying performance in a single period. By excluding the accounting effects, positive or
negative, of certain items (e.g., restructuring charges, outcomes of certain legal matters and settlements, certain effects of
strategic transactions and related costs, losses from debt extinguishments, gains or losses from curtailment or settlement
of pension obligations, gains or losses on sales of certain assets, gains or losses on venture investments, currency
adjustments due to highly inflationary economies, and other items), we believe that we are providing meaningful
supplemental information that facilitates an understanding of our core operating results and liquidity measures. While
some of the items we exclude from GAAP financial measures recur, they tend to be disparate in amount, frequency or
timing.
We use the non-GAAP financial measures described below in this MD&A.
•
Sales change ex. currency refers to the increase or decrease in net sales, excluding the estimated impact of
foreign currency translation, and, where applicable, the currency adjustments for transitional reporting of
highly inflationary economies, and the reclassification of sales between segments. Additionally, where
applicable, sales change ex. currency is also adjusted for an extra week in our fiscal year and the calendar shift
resulting from an extra week in the prior fiscal year. The estimated impact of foreign currency translation is
calculated on a constant currency basis, with prior-period results translated at current period average
exchange rates to exclude the effect of foreign currency fluctuations.
Our 2025 fiscal year that began on December 29, 2024 will end on December 31, 2025; fiscal years 2026 and
beyond will be coincident with the calendar year beginning on January 1 and ending on December 31.
•
Organic sales change refers to sales change ex. currency, excluding the estimated impact of acquisitions and
product line divestitures.
We believe that sales change ex. currency and organic sales change assist investors in evaluating the sales
change from the ongoing activities of our businesses and enhance their ability to evaluate our results from
period to period.
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2024 Annual Report | Avery Dennison Corporation

•
Adjusted free cash flow refers to cash flow provided by operating activities, less payments for property, plant
and equipment, less payments for software and other deferred charges, plus proceeds from company-owned
life insurance policies, plus proceeds from sales of property, plant and equipment, plus (minus) net proceeds
from insurance and sales (purchases) of investments, less net cash used for Argentine Blue Chip Swap
securities. Where applicable, adjusted free cash flow is also adjusted for certain acquisition-related transaction
costs. We believe that adjusted free cash flow assists investors by showing the amount of cash we have
available for debt reductions, dividends, share repurchases, and acquisitions.
•
Operational working capital as a percentage of annualized current quarter net sales refers to trade accounts
receivable and inventories, net of accounts payable, and excludes cash and cash equivalents, short-term
borrowings, deferred taxes, other current assets and other current liabilities divided by annualized current
quarter net sales. We believe that operational working capital as a percentage of annualized current quarter
net sales assists investors in assessing our working capital requirements because it excludes the impact of
fluctuations attributable to our financing and other activities (which affect cash and cash equivalents, deferred
taxes, other current assets and other current liabilities) that tend to be disparate in amount, frequency or
timing, and may increase the volatility of working capital as a percentage of sales from period to period. The
items excluded from this measure are not significantly influenced by our day-to-day activities managed at the
operating level and do not necessarily reflect the underlying trends in our operations.
OVERVIEW AND OUTLOOK
Fiscal Year
Our fiscal years have generally consisted of 52 weeks, with every fifth or sixth fiscal year consisting of 53 weeks;
our 2024, 2023 and 2022 fiscal years consisted of 52-week periods ending December 28, 2024, December 30, 2023
and December 31, 2022, respectively.
Subsequent to fiscal year-end 2024, in January 2025, the Audit Committee of our Board of Directors approved a
change to our previous 52- or 53-week fiscal year generally ending on the Saturday closest to December 31 to a fiscal
year coincident with the calendar year. Our 2025 fiscal year that began on December 29, 2024 will end on December 31,
2025 and fiscal years 2026 and beyond will begin on January 1 and end on December 31.
Net Sales
The factors impacting reported net sales change, as compared to the prior-year period, are shown in the table
below.
2024
2023
Reported net sales change
5 %
(8) %
Foreign currency translation
—
1
Sales change ex. currency(1)
5 %
(7) %
Acquisitions
(1)
(1)
Organic sales change(1)
5 %
(8) %
(1)
Totals may not sum due to rounding.
In 2024, net sales increased on an organic basis primarily due to higher volume, partially offset by the impact of
raw material deflation-related price reductions. In 2023, net sales decreased on an organic basis primarily due to lower
volume, partially offset by pricing actions.
Avery Dennison Corporation | 2024 Annual Report
25

Net Income
Net income increased from approximately $503 million in 2023 to approximately $705 million in 2024. The
primary factors affecting this increase were:
•
Higher volume
•
Benefits from productivity initiatives, including temporary cost-saving actions, material re-engineering and
savings from restructuring actions, net of transition costs
•
The impact of the accrual for a legacy legal matter in the prior year
•
Lower restructuring charges
These items were partially offset by the following factors:
•
Higher employee-related costs
•
Higher provision for income taxes
•
The net impact of raw material deflation-related price reductions
Cost Reduction Actions
2025 Actions
In the fourth quarter 2024, we recorded $13.1 million in restructuring charges related to our 2025 actions. These
charges consisted of severance and related costs for the reduction of approximately 90 positions, as well as asset
impairment charges, at numerous locations across our company, reflecting actions in our Solutions Group reportable
segment.
2023 Actions
During 2024, we recorded $28.8 million in restructuring charges, net of reversals, related to our 2023 actions.
These charges consisted of severance and related costs for the reduction of approximately 1,280 positions, as well as
asset impairment charges, at numerous locations across our company. During 2023, we recorded $49.0 million in
restructuring charges, net of reversals, related to these actions. These charges consisted of severance and related costs
for the reduction of approximately 1,450 positions, as well as asset impairment charges, at numerous locations across our
company.
In the third quarter of 2023, we approved a restructuring plan (the “2023 Plan”) to further optimize the European
footprint of our Materials Group reportable segment by reducing operations in a manufacturing facility in Belgium. The
cumulative charges associated with the 2023 Plan consisted of severance and related costs for the reduction of
approximately 210 positions, as well as asset impairment charges. We recorded $30.4 million in 2023 in restructuring
charges related to the 2023 Plan. The activities related to the 2023 Plan are expected to be substantially completed by
mid-2025.
We realized approximately $63 million and $69 million in savings from restructuring actions, net of transition
costs, in 2024 and 2023, respectively, primarily related to our 2023 actions.
Restructuring charges were included in “Other expense (income), net” in the Consolidated Statements of Income.
Refer to Note 13, “Cost Reduction Actions,” to the Consolidated Financial Statements for more information.
Business Acquisitions
2023 Business Acquisitions
On November 23, 2023, we completed our business acquisition of Silver Crystal Group (“Silver Crystal”), a
Canada-based provider of sports apparel customization and application solutions across in-venue, direct-to-business and
e-commerce platforms. On May 22, 2023, we completed our business acquisition of LG Group, Inc. (“Lion Brothers”), a
Maryland-based designer and manufacturer of apparel brand embellishments. On March 6, 2023, we completed our
business acquisition of Thermopatch, Inc. (“Thermopatch”), a New York-based manufacturer specializing in labeling,
embellishments and transfers for the sports, industrial laundry, workwear and hospitality industries. These acquisitions
expanded the product portfolio in our Solutions Group reportable segment.
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2024 Annual Report | Avery Dennison Corporation

The acquisitions of Silver Crystal, Lion Brothers and Thermopatch are referred to collectively as the “2023
Acquisitions.”
The aggregate purchase consideration, including purchase consideration payable, for the 2023 Acquisitions was
approximately $231 million. We funded the 2023 Acquisitions using cash and commercial paper borrowings. In addition
to the cash paid at closing, the sellers in one of these acquisitions are eligible for earn-out payments of up to $5 million,
subject to the acquired company achieving certain post-acquisition performance targets. As of the acquisition date, we
included an estimate of the fair value of these earn-out payments in the aggregate purchase consideration.
The 2023 Acquisitions were not material, individually or in the aggregate, to the Consolidated Financial
Statements.
Accounting Guidance Updates
Refer to Note 1, “Summary of Significant Accounting Policies,” to the Consolidated Financial Statements for this
information.
Cash Flow
(In millions)
2024
2023
2022
Net cash provided by operating activities
$ 938.8
$ 826.0
$ 961.0
Purchases of property, plant and equipment
(208.8)
(265.3)
(278.1)
Purchases of software and other deferred charges
(31.0)
(19.8)
(20.4)
Proceeds from company-owned life insurance policies
—
48.1
—
Purchases of Argentine Blue Chip Swap securities
(34.2)
—
—
Proceeds from sales of Argentine Blue Chip Swap securities
24.0
—
—
Proceeds from sales of property, plant and equipment
.6
1.0
2.3
Proceeds from insurance and sales (purchases) of investments, net
10.1
1.9
1.9
Payments for certain acquisition-related transaction costs
—
—
.6
Adjusted free cash flow
$ 699.5
$ 591.9
$ 667.3
In 2024, net cash provided by operating activities increased compared to 2023 primarily due to higher net income,
lower incentive compensation payments and lower tax payments, net of refunds, partially offset by changes in
operational working capital and the settlement payment for the Adasa legal matter. In 2024, adjusted free cash flow
increased compared to 2023 primarily due to higher net cash provided by operating activities and lower purchases of
property, plant and equipment, partially offset by lower proceeds from company-owned life insurance policies.
Outlook
Certain factors that we believe will contribute to our 2025 results are described below.
•
We anticipate net sales to increase, driven by volume growth in both the Solutions Group and Materials Group
reportable segments.
•
We expect an unfavorable impact to our full-year net sales and operating income from foreign currency
translation, based on recent rates.
•
We anticipate incremental savings from restructuring actions, net of transition costs.
•
We expect our full-year effective tax rate to be in the mid-twenty percent range.
Avery Dennison Corporation | 2024 Annual Report
27

ANALYSIS OF RESULTS OF OPERATIONS
Income before Taxes
(In millions, except percentages)
2024
2023
2022
Net sales
$8,755.7
$8,364.3
$9,039.3
Cost of products sold
6,225.0
6,086.8
6,635.1
Gross profit
2,530.7
2,277.5
2,404.2
Marketing, general and administrative expense
1,415.3
1,313.7
1,330.8
Other expense (income), net
71.6
180.9
(.6)
Interest expense
117.0
119.0
84.1
Other non-operating expense (income), net
(26.7)
(30.8)
(9.4)
Income before taxes
$
953.5
$
694.7
$
999.3
Gross profit margin
28.9 %
27.2 %
26.6 %
Gross Profit Margin
Gross profit margin in 2024 increased compared to 2023 primarily due to benefits from productivity initiatives,
including material re-engineering and savings from restructuring actions, net of transition costs, and higher volume,
partially offset by higher employee-related costs.
Gross profit margin in 2023 increased compared to 2022 primarily due to benefits from productivity initiatives,
including temporary cost-saving actions, material re-engineering and savings from restructuring actions, net of transition
costs, and the net impact of pricing and raw material inputs costs, partially offset by lower volume and higher employee-
related costs.
Marketing, General and Administrative Expense
Marketing, general and administrative expense increased in 2024 compared to 2023 primarily due to higher
employee-related costs, partially offset by benefits from productivity initiatives, including savings from restructuring
actions, net of transition costs.
Marketing, general and administrative expense decreased in 2023 compared to 2022 primarily due to benefits
from productivity initiatives, including temporary cost-saving actions and savings from restructuring actions, net of
transition costs, partially offset by higher employee-related costs and growth investments.
Other Expense (Income), Net
(In millions)
2024
2023
2022
Other expense (income), net by type
Restructuring charges, net of reversals:
Severance and related costs, net of reversals
$ 35.4
$
70.8
$ 7.6
Asset impairment and lease cancellation charges
6.5
8.6
.1
Other items:
Losses from Argentine peso remeasurement and Blue Chip Swap
transactions
16.4
29.9
—
(Gain) loss on venture investments
19.2
1.5
(13.5)
Outcomes of legal matters and settlements, net
(6.2)
64.3
6.3
Transaction and related costs
.3
5.3
.3
(Gain) loss on sales of assets
—
.5
(1.4)
Other expense (income), net
$ 71.6
$ 180.9
$
(.6)
Refer to Note 13, “Cost Reduction Actions,” to the Consolidated Financial Statements for more information
regarding restructuring charges, net of reversals.
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2024 Annual Report | Avery Dennison Corporation

Refer to Note 9, “Fair Value Measurements,” to the Consolidated Financial Statements for more information
regarding (gain) loss on venture investments.
Refer to Note 8, “Contingencies,” and Note 15, “Segment and Disaggregated Revenue Information,” to the
Consolidated Financial Statements for more information regarding outcomes of legal matters and settlements, net.
Interest Expense
Interest expense decreased in 2024 compared to 2023 primarily due to a decrease in commercial paper
borrowings, partially offset by higher debt balances.
Interest expense increased in 2023 compared to 2022 primarily as a result of higher interest rates on borrowings
and higher debt balances.
Other Non-Operating Expense (Income), Net
Other non-operating income decreased in 2024 compared to 2023 due to lower interest income, primarily in
Argentina.
Other non-operating income increased in 2023 compared to 2022 due to higher interest income, primarily in
Argentina.
Net Income and Earnings per Share
(In millions, except percentages and per share amounts)
2024
2023
2022
Income before taxes
$953.5
$694.7
$999.3
Provision for income taxes
248.6
191.7
242.2
Net income
$704.9
$503.0
$757.1
Net income per common share
$ 8.77
$ 6.23
$ 9.28
Net income per common share, assuming dilution
8.73
6.20
9.21
Effective tax rate
26.1 %
27.6 %
24.2 %
Provision for Income Taxes
Our effective tax rate in 2024 decreased compared to 2023 primarily due to lower non-deductible expenses
resulting from the impact of the Argentine peso remeasurement loss and lower tax charges from the recognition of
uncertain tax positions in certain foreign jurisdictions, partially offset by higher tax charges from valuation allowances.
Our effective tax rate in 2023 increased compared to 2022 primarily due to higher non-deductible expenses resulting
from the impact of the Argentine peso remeasurement loss, higher tax charges from the recognition of uncertain tax
positions in certain foreign jurisdictions, and lower U.S. federal return-to-provision benefits.
Our effective tax rate can vary from period to period due to a variety of factors, such as changes in our mix of
earnings in countries with differing statutory tax rates, changes in our tax reserves, settlements of income tax audits,
changes in tax laws and regulations, return-to-provision adjustments, tax impacts related to stock-based payments, and
our execution of tax planning strategies.
Refer to Note 14, “Taxes Based on Income,” to the Consolidated Financial Statements for more information.
Avery Dennison Corporation | 2024 Annual Report
29

RESULTS OF OPERATIONS BY REPORTABLE SEGMENT
During the fourth quarter of 2024, we modified our segment performance measure to exclude other expense
(income), net. These changes align with how our CODM evaluates segment performance and allocates resources. Prior
periods have been conformed to the current period presentation. Segment adjusted operating income is defined as
income before taxes adjusted for other expense (income), net; interest expense, other non-operating expense (income),
net; and other items.
Refer to Note 15, “Segment and Disaggregated Revenue Information,” to the Consolidated Financial Statements
for more information.
Materials Group
(In millions)
2024
2023
2022
Net sales including intersegment sales
$6,175.8
$5,968.4
$6,632.2
Less intersegment sales
(162.8)
(157.1)
(137.1)
Net sales
$6,013.0
$5,811.3
$6,495.1
Segment adjusted operating income(1)
924.7
789.2
845.9
(1)
Segment adjusted operating income excluded charges associated with restructuring
actions and related costs in all years, loss on venture investment in 2024, losses from
Argentine peso remeasurement and Blue Chip Swap transactions and outcomes of
legal matters and settlements, net, in 2024 and 2023, loss on sale of assets in 2023,
and gain on venture investment in 2022. These items were included in “Other
expense (income), net.”
$
40.4
$
88.3
$
(13.4)
Net Sales
The factors impacting reported net sales change are shown in the table below.
2024
2023
Reported net sales change
4%
(11)%
Foreign currency translation
—
—
Sales change ex. currency(1)
4
(10)
Organic sales change(1)
4%
(10)%
(1)
Totals may not sum due to rounding.
In 2024, net sales increased on an organic basis compared to the prior year due to higher volume, partially offset
by the impact of raw material deflation-related price reductions. On an organic basis, net sales increased by low single
digit rates in North America and Western Europe and a high single digit rate in emerging markets.
In 2023, net sales decreased on an organic basis compared to the prior year due to lower volume driven primarily
by inventory destocking, partially offset by the impact of pricing actions. On an organic basis, net sales decreased by a
low double-digit rate in North America, a high teens rate in Western Europe and a high single digit rate in emerging
markets.
Segment Adjusted Operating Income
Segment adjusted operating income increased in 2024 compared to the same period in 2023 primarily due to
higher volume and benefits from productivity initiatives, including material re-engineering and savings from restructuring
actions, net of transition costs, partially offset by higher employee-related costs and the net impact of pricing and raw
material input costs.
Segment adjusted operating income decreased in 2023 compared to the same period in 2022 primarily due to
lower volume, partially offset by benefits from productivity initiatives, including temporary cost-saving actions, material
re-engineering and savings from restructuring actions, net of transition costs, and the net impact of pricing and raw
material input costs.
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2024 Annual Report | Avery Dennison Corporation

Solutions Group
(In millions)
2024
2023
2022
Net sales including intersegment sales
$2,795.0
$2,588.5
$2,581.6
Less intersegment sales
(52.3)
(35.5)
(37.4)
Net sales
$2,742.7
$2,553.0
$2,544.2
Segment adjusted operating income(1)
289.3
252.0
310.1
(1)
Segment adjusted operating income excluded charges associated with restructuring
actions, outcomes of legal matters and settlements, net, and transaction and related
costs in all years, loss on venture investments in 2024 and 2023, and gain on sales
of assets in 2022. These items were included in “Other expense (income), net.”
$
30.8
$
86.3
$
7.8
Net Sales
The factors impacting reported net sales change are shown in the table below.
2024
2023
Reported net sales change
7 %
— %
Foreign currency translation
1
2
Sales change ex. currency(1)
8
2
Acquisitions
(2)
(3)
Organic sales change(1)
6 %
(1) %
(1)
Totals may not sum due to rounding.
In 2024, on an organic basis, net sales increased by a low single digit rate in high-value categories and a
low-double digit rate in the base business compared to the prior year. Company-wide, on an organic basis, sales of
intelligent labels increased by a high single digit rate compared to the prior year.
In 2023, on an organic basis, net sales increased by a high single digit rate in high-value categories and decreased
by a low double-digit rate in the base business compared to the prior year. Company-wide, on an organic basis, sales of
intelligent labels increased by a low double-digit rate compared to the prior year.
Segment Adjusted Operating Income
Segment adjusted operating income increased in 2024 compared to 2023 primarily due to higher volume and
benefits from productivity initiatives, including savings from restructuring actions, net of transition costs, partially offset
by higher employee-related costs and growth investments.
Segment adjusted operating income decreased in 2023 compared to 2022 primarily due to higher employee-
related costs, lower volume, growth investments and the impact of unfavorable foreign currency translation, partially
offset by benefits from productivity initiatives, including temporary cost-saving actions and savings from restructuring
actions, net of transition costs.
Avery Dennison Corporation | 2024 Annual Report
31

FINANCIAL CONDITION
Liquidity
Operating Activities
(In millions)
2024
2023
2022
Net income
$ 704.9
$503.0
$ 757.1
Depreciation
197.1
187.4
177.4
Amortization
115.1
111.0
113.3
Provision for credit losses and sales returns
47.4
49.9
50.1
Stock-based compensation
28.7
22.3
47.4
Deferred taxes and other non-cash taxes
(18.5)
(24.4)
18.4
Other non-cash expense and loss (income and gain), net
67.2
37.1
23.5
Trade accounts receivable
(107.3)
(16.7)
(22.1)
Inventories
(90.7)
111.7
(140.7)
Accounts payable
106.7
(87.6)
68.2
Taxes on income
40.2
(18.7)
18.9
Other assets
(48.0)
37.7
15.3
Other liabilities
(104.0)
(86.7)
(165.8)
Net cash provided by operating activities
$ 938.8
$826.0
$ 961.0
In 2024, cash flow provided by operating activities increased compared to 2023 primarily due to higher net
income, lower incentive compensation payments and lower tax payments, net of refunds, partially offset by changes in
operational working capital and the settlement payment for the Adasa legal matter.
In 2023, cash flow provided by operating activities decreased compared to 2022 primarily due to lower net income
and higher tax payments, net of refunds, partially offset by changes in operational working capital and lower incentive
compensation payments.
Investing Activities
(In millions)
2024
2023
2022
Purchases of property, plant and equipment
$(208.8)
$(265.3)
$(278.1)
Purchases of software and other deferred charges
(31.0)
(19.8)
(20.4)
Proceeds from company-owned life insurance policies
—
48.1
—
Purchases of Argentine Blue Chip Swap securities
(34.2)
—
—
Proceeds from sales of Argentine Blue Chip Swap securities
24.0
—
—
Proceeds from sales of property, plant and equipment
.6
1.0
2.3
Proceeds from insurance and sales (purchases) of investments, net
10.1
1.9
1.9
Proceeds from sale of venture investment
—
—
1.1
Payments for acquisitions, net of cash acquired, and venture
investments
(3.8)
(224.9)
(39.5)
Net cash used in investing activities
$(243.1)
$(459.0)
$(332.7)
Purchases of Property, Plant and Equipment
In 2024, in our Solutions Group reportable segment, we primarily invested in buildings and equipment to support
growth in certain countries in Asia Pacific, including China and Malaysia, the U.S. and certain countries in Latin America,
primarily Mexico; in our Materials Group reportable segment, we primarily invested in buildings and equipment to support
growth in the U.S., and certain countries in Europe, primarily France, and Asia Pacific, primarily China. In 2023, in our
Solutions Group reportable segment, we primarily invested in buildings and equipment to support growth in certain
countries in Asia Pacific, primarily Malaysia, the U.S. and certain countries in Latin America, primarily Mexico; in our
Materials Group reportable segment, we primarily invested in buildings and equipment to support growth in the U.S. and
certain countries in Europe, primarily France, and Asia Pacific, primarily China. In 2022, in our Solutions Group reportable
32
2024 Annual Report | Avery Dennison Corporation

segment, we primarily invested in buildings and equipment to support growth in certain countries in Asia Pacific,
including Malaysia, China and Vietnam, and the U.S.; in our Materials Group reportable segment, we primarily invested in
buildings and equipment in the U.S. and certain countries in Europe, primarily France, and Latin America, primarily Brazil.
Purchases of Software and Other Deferred Charges
In 2024, 2023 and 2022, we invested in information technology upgrades worldwide.
Proceeds from Company-Owned Life Insurance Policies
In 2023, we utilized approximately $48 million of the cash surrender value available under our company-owned
life insurance policies.
Purchases and Proceeds from Argentine Blue Chip Swap Securities
In 2024, we entered into Blue Chip Swap transactions that resulted in losses of approximately $10 million. Refer
to Note 16, “Supplemental Financial Information,” to the Consolidated Financial Statements for more information.
Proceeds from Insurance and Sales (Purchases) Investments, net
In 2024, we received approximately $8 million of insurance proceeds for losses related to damaged property, plant
and equipment.
Payments for Acquisitions, Net of Cash Acquired, and Venture Investments
We paid consideration, net of cash acquired, of approximately $223 million for the 2023 Acquisitions and
$30 million for the acquisitions we completed in 2022. We funded the 2023 Acquisitions and the acquisitions we
completed in 2022 using cash and commercial paper borrowings. We also made certain venture investments in 2024,
2023 and 2022.
Refer to Note 2, “Business Acquisitions,” to the Consolidated Financial Statements for more information.
Financing Activities
(In millions)
2024
2023
2022
Net increase (decrease) in borrowings with maturities of three
months or less
$(269.0)
$ (36.6)
$
34.6
Additional long-term borrowings
539.2
394.9
—
Repayments of long-term debt and finance leases
(308.1)
(255.9)
(6.3)
Dividends paid
(277.5)
(256.7)
(238.9)
Share repurchases
(247.5)
(137.5)
(379.5)
Net (tax withholding) proceeds related to stock-based compensation
(8.4)
(23.8)
(25.1)
Other
(4.8)
(1.6)
—
Net cash used in financing activities
$(576.1)
$(317.2)
$(615.2)
Borrowings and Repayment of Debt
During 2024, 2023 and 2022, our commercial paper borrowings funded various activities, including repayments of
long-term debt, acquisitions, dividend payments, share repurchases, capital expenditures and other general corporate
purposes.
In November 2024, we issued €500 million of senior notes, due November 4, 2034, which bear an interest rate of
3.750% per year, payable annually in arrears. Our net proceeds from this issuance, after deducting underwriting
discounts and offering expenses, were approximately €495 million ($539 million), which we intend to use to repay our
€500 million of senior notes maturing in March 2025 and for general corporate purposes.
In August 2024, we repaid our $300 million of senior notes at maturity using cash flows from operations and
commercial paper borrowings.
Avery Dennison Corporation | 2024 Annual Report
33

In March 2023, we issued $400 million of senior notes, due March 15, 2033, which bear an interest rate of
5.750% per year, payable semiannually in arrears. Our net proceeds from this issuance, after deducting underwriting
discounts and offering expenses, were $394.9 million, which we used to repay indebtedness under our commercial paper
programs and our $250 million of senior notes that matured on April 15, 2023.
Refer to Note 4, “Debt” to the Consolidated Financial Statements for more information.
Dividends Paid
We paid dividends per share of $3.45, $3.18 and $2.93 in 2024, 2023 and 2022, respectively. In April 2024, we
increased our quarterly dividend rate to $0.88 per share, representing an increase of approximately 9% from our previous
quarterly dividend rate of $0.81 per share. In April 2023, we increased our quarterly dividend to $0.81 per share,
representing an increase of approximately 8% from our previous dividend rate of $0.75 per share.
Share Repurchases
From time to time, our Board authorizes the repurchase of shares of our outstanding common stock. Repurchased
shares may be reissued under our long-term incentive plan or used for other corporate purposes. In 2024, 2023 and
2022, we repurchased approximately 1.2 million, 0.8 million and 2.2 million shares of our common stock, respectively.
In April 2022, our Board authorized the repurchase of shares of our common stock with a fair market value of up to
$750 million, excluding any fees, commissions or other expenses related to such purchases and in addition to any amount
outstanding under our previous Board authorization. Shares of our common stock in the aggregate amount of
$346.9 million remained authorized for repurchase under this Board authorization as of December 28, 2024. Board
authorizations remain in effect until shares in the amount authorized thereunder have been repurchased.
Net (Tax Withholding) Proceeds Related to Stock-Based Compensation
Approximately 0.1 million stock options were exercised in 2024, resulting in proceeds of approximately
$10 million. Refer to Note 12, “Long-Term Incentive Compensation,” to the Consolidated Financial Statements for more
information.
Analysis of Selected Balance Sheet Accounts
Long-lived Assets
Property, plant and equipment, net, decreased by approximately $39 million to $1.59 billion at year-end 2024,
which primarily reflected depreciation expense and the impact of foreign currency translation, partially offset by
purchases of property, plant and equipment.
Goodwill decreased by approximately $37 million to $1.98 billion at year-end 2024, which primarily reflected the
impact of foreign currency translation.
Other intangibles resulting from business acquisitions, net, decreased by approximately $94 million to
$755.3 million at year-end 2024, primarily reflecting current year amortization expense.
Refer to Note 3, “Goodwill and Other Intangibles Resulting from Business Acquisitions,” to the Consolidated
Financial Statements for more information.
Other assets increased by approximately $88 million to $897.3 million at year-end 2024, primarily reflecting
higher capitalized implementation costs associated with our cloud computing arrangements and higher operating lease
assets.
Long-term Retirement Benefits and Other Liabilities
Other long-term retirement benefits and other liabilities decreased by approximately $66 million to $434.6 million
at year-end 2024, primarily reflecting the settlement payment for the Adasa legal matter.
Shareholders’ Equity Accounts
The balance of our shareholders’ equity increased by approximately $184 million to $2.31 billion at year-end
2024. Refer to Note 11, “Supplemental Equity and Comprehensive Income Information,” to the Consolidated Financial
Statements for more information.
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2024 Annual Report | Avery Dennison Corporation

Impact of Foreign Currency Translation
(In millions)
2024
2023
Change in net sales
$
(33)
$
(58)
In 2024, international operations generated approximately 70% of our net sales. Our future results are subject to
changes in geopolitical, social and economic conditions in the regions in which we operate and the impact of fluctuations
in foreign currency exchange rates.
The unfavorable impact of foreign currency translation on net sales in 2024 compared to 2023 was primarily
related to sales in China and Brazil, partially offset by the favorable impact of euro-denominated sales.
Effect of Foreign Currency Transactions
The impact on net income from foreign currency transactions is largely mitigated because the costs of our products
are generally denominated in the same currencies in which they are sold. In addition, to reduce our income and cash flow
exposure to transactions in foreign currencies, we enter into foreign currency exchange forward, option and swap
contracts where available and appropriate. Refer to Note 5, “Financial Instruments,” to the Consolidated Financial
Statements for more information.
During 2024 and 2023, the Argentine peso devalued significantly compared to the U.S. dollar, resulting in
remeasurement losses of approximately $16 million and $30 million, respectively, which was included in “Other expense
(income), net” in the Consolidated Statements of Income. The 2024 losses included Blue Chip Swap transactions that
resulted in losses of approximately $10 million. Refer to Note 16, “Supplemental Financial Information,” to the
Consolidated Financial Statements for more information.
Analysis of Selected Financial Ratios
We utilize the financial ratios discussed below to assess our financial condition and operating performance. We
believe this information assists our investors in understanding the factors impacting our cash flow other than net income
and capital expenditures.
Operational Working Capital Ratio
Operational working capital, as a percentage of annualized current-quarter net sales, is reconciled to working
capital below. Our objective is to minimize our investment in operational working capital, as a percentage of annualized
current-quarter net sales, to maximize our cash flow and return on investment. Operational working capital, as a
percentage of annualized current-quarter net sales, in 2024 was comparable with 2023. Further information regarding
the components of operational working capital is provided below.
(In millions, except percentages)
2024
2023
(A) Working capital
$
216.1
$
96.5
Reconciling items:
Cash and cash equivalents
(329.1)
(215.0)
Other current assets
(305.3)
(245.4)
Short-term borrowings and current portion of long-term debt and finance leases
592.3
622.2
Current income taxes payable and other current accrued liabilities
929.6
800.2
(B) Operational working capital
$1,103.6
$1,058.5
(C) Fourth-quarter net sales, annualized
$8,742.8
$8,442.0
Operational working capital, as a percentage of annualized current-quarter net sales
(B) ÷ (C)
12.6 %
12.5 %
Accounts Receivable Ratio
The average number of days sales outstanding was 61 days in both 2024 and 2023, calculated using the accounts
receivable balance at year-end divided by the average daily sales in the fourth quarter of 2024 and 2023, respectively.
Avery Dennison Corporation | 2024 Annual Report
35

Inventory Ratio
Average inventory turnover was 6.4 in 2024 compared to 6.6 in 2023, calculated using the annualized fourth-
quarter cost of products sold in 2024 and 2023, respectively, and divided by the inventory balance at the respective
year-end. The decrease in average inventory turnover primarily reflected higher inventory balances, partially offset by the
impact of foreign currency translation.
Accounts Payable Ratio
The average number of days payable outstanding was 77 days in both 2024 and 2023, calculated using the
accounts payable balance at year-end divided by the annualized fourth-quarter cost of products sold in 2024 and 2023,
respectively.
Capital Resources
Capital resources include cash flows from operations, cash and cash equivalents and debt financing, including
access to commercial paper borrowings supported by our revolving credit facility (the “Revolver”). We use these
resources to fund our operational needs.
At year-end 2024, we had cash and cash equivalents of $329.1 million held in accounts at third-party financial
institutions in numerous locations throughout the world. At year-end 2024, the majority of our cash and cash equivalents
was held by our foreign subsidiaries, primarily in the Asia Pacific region.
To meet our U.S. cash requirements, we have several cost-effective liquidity options available. These options
include borrowing funds at reasonable rates, including borrowings from our foreign subsidiaries, and repatriating foreign
earnings and profits. However, if we were to repatriate foreign earnings and profits, a portion would be subject to cash
payments of withholding taxes imposed by foreign tax authorities. Additional U.S. taxes may also result from the impact
of foreign currency fluctuations related to these earnings and profits.
In June 2024, we entered into a Credit Agreement (the “Credit Agreement”) related to our Revolver to borrow up
to an aggregate of $1.2 billion through its maturity date of June 26, 2029. The Revolver refinanced the prior revolving
credit facility under the Fifth Amended and Restated Credit Agreement dated as of February 13, 2020, as amended.
Pursuant to the Credit Agreement, the commitments under the Revolver may be increased by up to $600 million, subject
to lender approvals and customary requirements. Under certain circumstances, we may request that the commitments
under the Revolver be extended for one-year periods in accordance with the terms and conditions of the Credit
Agreement. We use the Revolver as a back-up facility for our commercial paper program and for other corporate
purposes.
The Revolver contains a financial covenant that requires us to maintain a maximum leverage ratio (calculated as a
ratio of consolidated debt minus unrestricted cash and cash equivalents in excess of $50 million to consolidated EBITDA
as defined in the agreement) of not more than 3.50 to 1.00; provided that, in the event of an acquisition by us that
exceeds $250 million, the maximum leverage ratio increases to 4.00 to 1.00 for the fiscal quarter in which the acquisition
occurs and the three fiscal quarters immediately following that fiscal quarter. As of December 28, 2024, our ratio was
substantially below the maximum ratio allowed by the Revolver. As of December 30, 2023, our ratio was substantially
below the maximum rate allowed by our previous revolving credit facility.
In addition to the Revolver, we have short-term lines of credit available in various countries of approximately
$261 million in the aggregate at December 28, 2024. These lines may be cancelled at any time by us or the issuing banks.
Borrowings under our short-term lines of credit were not material as of December 28, 2024 and December 30, 2023.
We are exposed to financial market risk resulting from changes in interest and foreign currency exchange rates,
and to possible liquidity and credit risks of our counterparties.
We currently anticipate using the net proceeds from the €500 million of senior notes we issued in the fourth
quarter of 2024, cash flows from operations and commercial paper borrowings to repay €500 million of senior notes,
$25 million of medium-term notes and $5 million of medium-term notes maturing in the first, second and third quarters of
2025, respectively.
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2024 Annual Report | Avery Dennison Corporation

Capital from Debt
The carrying value of our total debt decreased by approximately $92 million to $3.15 billion at year-end 2024 from
year-end 2023, primarily due to the repayment of our $300 million of senior notes that matured in August 2024, a net
decrease in commercial paper borrowings and the revaluation of our euro-denominated senior notes, partially offset by
our issuance of €500 million of senior notes in November 2024.
Credit ratings are a significant factor in our ability to raise short- and long-term financing. The credit ratings
assigned to our company also impact the interest rates we pay and our access to commercial paper, credit facilities, and
other borrowings. A downgrade of our short-term credit ratings could impact our ability to access commercial paper
markets. If our access to commercial paper markets were to become limited, the Revolver and our other credit facilities
would be available to meet our short-term funding requirements. When determining our credit rating, we believe that
rating agencies primarily consider our competitive position, business outlook, consistency of cash flows, debt level and
liquidity, geographic footprint and management team. We remain committed to maintaining an investment grade rating.
Fair Value of Debt
The estimated fair value of our long-term debt is primarily based on the credit spread above U.S. Treasury
securities or euro government bond securities, as applicable, on notes with similar rates, credit ratings and remaining
maturities. The fair value of short-term borrowings, which includes commercial paper issuances and short-term lines of
credit, approximates their carrying value given their short duration. The fair value of our total debt was $3.01 billion at
December 28, 2024 and $3.11 billion at December 30, 2023. Fair value amounts were determined based primarily on
Level 2 inputs. Refer to Note 1, “Summary of Significant Accounting Policies,” for more information.
Contractual Obligations, Commitments and Off-Balance Sheet Arrangements
Material Cash Requirements at End of Year 2024
We have short- and long-term material cash requirements related to our contractual obligations that arise in the
normal course of business. In addition to principal and interest payments on our outstanding debt obligations, our
contractual obligations primarily consist of lease payments.
Refer to Note 4, “Debt,” to the Consolidated Financial Statements for a summary of our principal payments for
short-term borrowings and long-term debt obligations as of December 28, 2024. Future interest payments for long-term
debt as of December 28, 2024 are approximately $106 million in 2025; $97 million in 2026; $97 million in 2027;
$97 million in 2028; $73 million in 2029; and $243 million from 2030 through maturity.
Refer to Note 7, “Commitments and Leases,” to the Consolidated Financial Statements for a summary of our lease
obligations as of December 28, 2024.
Refer to Note 6, “Pension and Other Postretirement Benefits,” to the Consolidated Financial Statements for
information regarding our defined benefit pension plan contributions and future benefit payments, deferred compensation
plan benefit payments and unfunded termination indemnity benefits.
Refer to Note 12, “Long-term Incentive Compensation,” to the Consolidated Financial Statements for information
regarding cash-based awards to employees under one of our long-term incentive compensation plans.
Refer to Note 14, “Taxes Based on Income,” to the Consolidated Financial Statements for more information
regarding our unrecognized tax benefits of approximately $81 million.
Avery Dennison Corporation | 2024 Annual Report
37

CRITICAL ACCOUNTING ESTIMATES
The preparation of financial statements in conformity with GAAP requires our management to make estimates and
assumptions for the reporting period and as of the financial statement date. These estimates and assumptions affect our
reported amounts of assets and liabilities, disclosure of contingent liabilities, and reported amounts of revenue and
expense. Actual results could differ from these estimates.
Critical accounting estimates are those that are important to our financial condition and results, and which require
us to make difficult, subjective and/or complex judgments. Critical accounting estimates cover accounting matters that are
inherently uncertain because their future resolution is unknown. We believe our critical accounting estimates include
accounting for goodwill, business combinations, pension and postretirement benefits, taxes based on income and long-
term incentive compensation.
Goodwill
Business combinations are accounted for using the acquisition method, with the excess of the acquisition cost over
the fair value of acquired net tangible assets and identified intangible assets considered goodwill. As a result, we disclose
goodwill separately from other intangible assets. Our reporting units are composed of either a discrete business or an
aggregation of businesses with similar economic characteristics.
We perform our annual impairment test of goodwill during the fourth quarter. Certain factors may cause us to
perform an impairment test prior to the fourth quarter, including significant underperformance of a business relative to
expected operating results, significant adverse economic and industry trends, significant decline in our market
capitalization for an extended period of time relative to net book value, or a decision to divest a portion of a reporting unit.
In performing impairment tests, we have the option to first assess qualitative factors to determine whether it is necessary
to perform a quantitative assessment for goodwill impairment. If the qualitative assessment indicates that it is more-
likely-than-not that the fair value of a reporting unit is less than its carrying value, we perform a quantitative assessment.
A quantitative assessment primarily consists of using the present value (discounted cash flow) method to
determine the fair value of reporting units with goodwill. We compare the fair value of each reporting unit to its carrying
amount, and, to the extent the carrying amount exceeds the unit’s fair value, we recognize an impairment of goodwill for
the excess up to the amount of goodwill of that reporting unit.
In consultation with outside specialists, we estimate the fair value of our reporting units using various valuation
techniques, with the primary technique being a discounted cash flow analysis. A discounted cash flow analysis requires
us to make various assumptions, including a reporting unit’s forecasted sales, operating margins and growth rates, as
well as discount rates. Our assumptions about discount rates are based on the weighted average cost of capital for
comparable companies. Our assumptions about sales, operating margins and growth rates are based on our forecasts,
business plans, economic projections, anticipated future cash flows, and marketplace data. We also make assumptions
for varying perpetual growth rates for periods beyond our long-term business plan period. We base our fair value
estimates on projected financial information and assumptions that we believe are reasonable. However, actual future
results may differ materially from these estimates and projections. The valuation methodology we use to estimate the fair
value of reporting units requires inputs and assumptions that reflect current market conditions, as well as the impact of
planned business and operational strategies that require management judgment. The estimated fair value could increase
or decrease depending on changes in the inputs and assumptions.
In our annual impairment test in the fourth quarter of 2024, the goodwill of all reporting units in our Materials
Group and Solutions Group reportable segments were tested utilizing a qualitative assessment. Based on this
assessment, we determined that the fair values of these reporting units were more-likely-than-not greater than their
respective carrying values. Therefore, the goodwill of our reporting units was not impaired.
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2024 Annual Report | Avery Dennison Corporation

Business Combinations
The results of acquired businesses are included in our Consolidated Financial Statements from their acquisition
date. Assets and liabilities of an acquired business are recorded at their estimated fair values on the acquisition date. We
engage third-party valuation specialists to assist us in determining these fair values where necessary. Any excess
consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill.
The allocation of purchase price requires management to make significant estimates and assumptions. While we
believe our assumptions and estimates are reasonable, they are inherently uncertain and based in part on our experience,
market conditions, our projections of future performance, and information obtained from management of the acquired
companies. Critical estimates include, but are not limited to, the following:
•
Future revenue and profit margins;
•
Royalty rates;
•
Discount rates;
•
Customer retention rates;
•
Technology migration curves; and
•
Useful lives assigned to acquired intangible assets.
Acquired identifiable finite-lived intangible assets are amortized on a straight-line basis to marketing, general and
administrative expense over their respective estimated useful lives.
Pension and Postretirement Benefits
The assumptions we use in determining projected benefit obligations and the fair value of plan assets for our
defined benefit pension plans and other postretirement benefit plans are evaluated by management in consultation with
outside actuaries. In the event that we determine that changes are warranted in the assumptions we use, such as the
discount rate, expected long-term rate of return or health care costs, future pension and postretirement benefit expenses
could increase or decrease. Due to changes in market conditions or participant population, the actuarial assumptions we
use may differ from actual results, which could have a significant impact on our pension and postretirement liabilities and
related costs.
Discount Rate
In consultation with our actuaries, we annually review and determine the discount rates to use in valuing our
postretirement obligations. The assumed discount rates for our non-U.S. pension plans reflect market rates for high
quality corporate bonds currently available. Our discount rates are determined by evaluating yield curves consisting of
large populations of high quality corporate bonds. The projected pension benefit payment streams are then matched with
the bond portfolios to determine a rate that reflects the liability duration unique to our pension and postretirement benefit
plans. As of December 28, 2024, a 0.25% increase in the discount rates associated with our non-U.S. plans would have
decreased our year-end projected benefit obligation by approximately $27 million and would not have a significant
impact on expected periodic benefit cost for the coming year. Conversely, a 0.25% decrease in the discount rates
associated with our non-U.S. plans would have increased our year-end projected benefit obligation by approximately
$27 million and would not have a significant impact on expected periodic benefit cost for the coming year.
We use the full yield curve approach to estimate the service and interest cost components of net periodic benefit
cost for our pension and other postretirement benefit plans. Using this approach, we apply multiple discount rates from a
yield curve composed of the rates of return on several hundred high-quality, fixed income corporate bonds available at
the measurement date. We believe this approach provides a more precise measurement of service and interest cost by
aligning the timing of plan liability cash flows to the corresponding rates on the yield curve.
Long-term Return on Plan Assets
We determine the long-term rate of return assumption for plan assets by reviewing the historical and expected
returns of both the equity and fixed income markets, taking into account our asset allocation, the correlation between
returns in our asset classes, and our mix of active and passive investments. Additionally, current market conditions,
including interest rates, are evaluated and market data is reviewed for reasonableness and appropriateness. An increase
or decrease of 0.25% on the long-term return on assets associated with our non-U.S. plans would have decreased or
increased our expected periodic benefit cost for the coming year by approximately $2 million.
Avery Dennison Corporation | 2024 Annual Report
39

Taxes Based on Income
Because we are subject to income tax in the U.S. and multiple foreign jurisdictions, judgment is required in
evaluating and estimating our worldwide provision for income taxes, accruals for taxes, deferred taxes and tax positions.
Our provision for income taxes is determined using the asset and liability approach in accordance with GAAP. Under this
approach, deferred tax assets represent amounts available to reduce income taxes payable in future years. These assets
arise because of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as
from net operating losses and tax credit carryforwards. These amounts are adjusted, as appropriate, to reflect changes in
tax rates expected to be in effect when the temporary differences reverse. We evaluate the realizability of these future
tax deductions and credits by assessing the period over which recoverability is allowed by law and the adequacy of future
expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating
earnings and available tax planning strategies. Our assessment of these sources of income relies heavily on estimates.
Our forecasted earnings by jurisdiction are determined by how we operate our business and any changes to our
operations may affect our effective tax rate. For example, our future income tax rate could be adversely affected by
earnings being lower than anticipated in jurisdictions in which we have significant deferred tax assets that are dependent
on such earnings to be realized. We use our historical experience and operating forecasts to evaluate expected future
taxable income. To the extent we do not consider it more-likely-than-not that a deferred tax asset will be recovered, a
valuation allowance is established in the period we make that determination.
We calculate our current and deferred tax provision based on estimates and assumptions that could differ from the
actual results reflected in income tax returns filed in subsequent years. Adjustments based on filed returns are recorded
when identified.
Tax laws and regulations are complex and subject to different interpretations by taxpayers and governmental
taxing authorities. We review our tax positions quarterly and adjust the balances if and as new information becomes
available. Significant judgment is required in determining our tax expense and evaluating our tax positions, including
evaluating uncertainties. Our estimate of the potential outcome of any uncertain tax issue is subject to our assessment of
relevant facts and circumstances existing at the balance sheet date, taking into consideration existing laws, regulations
and practices of the governmental taxing authorities exercising jurisdiction over our operations. We recognize and
measure our uncertain tax positions following the more-likely-than-not threshold for recognition and measurement for
tax positions we take or expect to take on a tax return.
Refer to Note 14, “Taxes Based on Income,” to the Consolidated Financial Statements for more information.
Long-Term Incentive Compensation
Valuation of Stock-Based Awards
We base our stock-based compensation expense on the fair value of awards, adjusted for estimated forfeitures,
amortized on a straight-line basis over the requisite service period for stock options and restricted stock units (“RSUs”).
We base compensation expense for performance units (“PUs”) on the fair value of awards, adjusted for estimated
forfeitures, and amortized on a straight-line basis as these awards cliff-vest at the end of the requisite performance
period. We base compensation expense related to market-leveraged stock units (“MSUs”) on the fair value of awards,
adjusted for estimated forfeitures, and amortized on a graded-vesting basis over their respective performance periods.
Compensation expense for awards with a market condition as a performance objective, which includes PUs and
MSUs, is not adjusted if the condition is not met, as long as the requisite service period is met.
We determine the fair value of RSUs and the component of PUs that is subject to the achievement of a
performance objective based on a financial performance condition based on the fair market value of our common stock as
of the date of the grant, adjusted for foregone dividends. Over the performance period of the PUs, the estimated number
of shares of our common stock issuable upon vesting is adjusted upward or downward based on the probability of
achieving the target performance objectives established for the award.
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2024 Annual Report | Avery Dennison Corporation

We determine the fair value of stock-based awards that are subject to achievement of performance objectives
based on a market condition, which includes MSUs and the other component of PUs, using the Monte-Carlo simulation
model, which utilizes multiple input variables, including expected stock price volatility and other assumptions appropriate
for determining fair value, to estimate the probability of satisfying the respective target performance objectives
established for the award.
Forfeiture Rate
Changes in estimated forfeiture rates are recorded as cumulative adjustments in the period estimates are revised.
Certain of our assumptions are based on management’s estimates, in consultation with outside specialists.
Significant changes in assumptions for future awards and actual forfeiture rates could materially impact our stock-based
compensation expense and results of operations.
Valuation of Cash-Based Awards
Cash-based awards consist of long-term incentive units (“LTI Units”) granted to eligible employees. LTI Units are
classified as liability awards and remeasured at each quarter-end over the applicable vesting or performance period. In
addition to LTI Units with terms and conditions that mirror those of RSUs, we also grant certain employees LTI Units with
terms and conditions similar to those of PUs and MSUs.
RECENT ACCOUNTING REQUIREMENTS
Refer to Note 1, “Summary of Significant Accounting Policies,” to the Consolidated Financial Statements for this
information.
Avery Dennison Corporation | 2024 Annual Report
41

Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Risk Management
We are exposed to the impact of changes in foreign currency exchange rates and interest rates. We generally do
not purchase or hold foreign currency or interest rate or commodity contracts for trading purposes.
Our objective in managing our exposure to foreign currency changes is to reduce the risk to our earnings and cash
flow associated with foreign currency exchange rate changes. As a result, we enter into foreign currency exchange
forward, option and swap contracts to reduce risks associated with the value of our existing foreign currency assets,
liabilities, firm commitments and anticipated foreign revenues and costs, when available and appropriate. The gains and
losses on these contracts are intended to offset changes in the related exposures. We do not hedge our foreign currency
translation exposure in a manner that would entirely eliminate the effects of changes in foreign currency exchange rates
on our net income.
Our objective in managing our exposure to interest rate changes is to reduce the impact of interest rate changes
on earnings and cash flows. To achieve this objective, we may periodically use interest rate contracts to manage our
exposure to interest rate changes.
Additionally, we enter into certain natural gas futures contracts to reduce the risks associated with natural gas we
anticipate using in our manufacturing operations. These amounts are not material to our financial statements.
In the normal course of operations, we also face other risks that are either non-financial or non-quantifiable. These
risks principally include changes in economic or political conditions, other risks associated with international operations,
commodity price risk, and legal and compliance risk, which are not reflected in the analyses described below.
Foreign Exchange Value-At-Risk
We use a Value-At-Risk (“VAR”) model to determine the estimated maximum potential one-day loss in earnings
associated with our foreign exchange positions and contracts. This approach assumes that market rates or prices for
foreign exchange positions and contracts are normally distributed. VAR model estimates are made assuming normal
market conditions. The model includes foreign exchange derivative contracts. Forecasted transactions, firm commitments,
accounts receivable and accounts payable denominated in foreign currencies, which certain of these instruments are
intended to hedge, are excluded from the model.
The VAR model is a risk analysis tool and does not represent actual losses in fair value that we could incur, nor
does it consider the potential effect of favorable changes in market factors.
In both 2024 and 2023, the VAR was estimated using a variance-covariance methodology. The currency
correlation was based on one-year historical data obtained from one of our domestic banks. A 95% confidence level was
used for a one-day time horizon.
The estimated maximum potential one-day loss in earnings for our foreign exchange positions and contracts was
not significant at year-end 2024 or 2023.
Interest Rate Sensitivity
An assumed 44 and 41 basis point increase in interest rates affecting our variable-rate borrowings (10% of our
weighted average interest rate on floating rate debt) in 2024 and 2023, respectively, would not have had a significant
impact on interest expense.
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2024 Annual Report | Avery Dennison Corporation

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Index to Consolidated Financial Statements
Page
Report of Independent Registered Public Accounting Firm (PCAOB ID 238)
44
Consolidated Financial Statements:
Consolidated Balance Sheets as of December 28, 2024 and December 30, 2023
46
Consolidated Statements of Income for 2024, 2023 and 2022
47
Consolidated Statements of Comprehensive Income for 2024, 2023 and 2022
48
Consolidated Statements of Shareholders’ Equity for 2024, 2023 and 2022
49
Consolidated Statements of Cash Flows for 2024, 2023 and 2022
50
Notes to Consolidated Financial Statements
51
Avery Dennison Corporation | 2024 Annual Report
43

Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of Avery Dennison Corporation
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of Avery Dennison Corporation and its
subsidiaries (the “Company”) as of December 28, 2024 and December 30, 2023, and the related consolidated statements
of income, of comprehensive income, of shareholders’ equity and of cash flows for each of the three years in the period
ended December 28, 2024, including the related notes (collectively referred to as the “consolidated financial statements”).
We also have audited the Company’s internal control over financial reporting as of December 28, 2024, based on criteria
established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
financial position of the Company as of December 28, 2024 and December 30, 2023, and the results of its operations and
its cash flows for each of the three years in the period ended December 28, 2024 in conformity with accounting principles
generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects,
effective internal control over financial reporting as of December 28, 2024, based on criteria established in Internal
Control – Integrated Framework (2013) issued by the COSO.
Basis for Opinions
The Company’s management is responsible for these consolidated financial statements, for maintaining effective
internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial
reporting, included in Management’s Report on Internal Control Over Financial Reporting appearing under Item 9A. Our
responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal
control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company
Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company
in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of
material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was
maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material
misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used
and significant estimates made by management, as well as evaluating the overall presentation of the consolidated
financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal
control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other
procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for
our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes
those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of
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2024 Annual Report | Avery Dennison Corporation

management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the
financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls
may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated
financial statements that was communicated or required to be communicated to the audit committee and that (i) relates
to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially
challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our
opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit
matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it
relates.
Revenue Recognition from Certain Product Revenue
As described in Notes 1 and 15 to the consolidated financial statements, revenue is recognized for an amount that
reflects the consideration which is expected from the sale of products when the Company satisfies a performance
obligation by transferring control of products to a customer. Management considers a number of factors in determining
when control has been transferred to a customer, including the following: (i) the Company’s present right to payment;
(ii) the customer’s legal title to the asset; (iii) physical possession of the asset; (iv) the customer’s significant risks and
rewards of ownership of the asset; and (v) the customer’s acceptance of the asset. Control generally transfers to a
customer upon shipment or delivery, depending on the specific terms of sale with the customer. The Company’s
consolidated net sales were $8,755.7 million for the year ended December 28, 2024, of which a majority relates to certain
product revenue in the Company’s Materials Group and Solutions Group reportable segments.
The principal consideration for our determination that performing procedures relating to revenue recognition from
certain product revenue is a critical audit matter is a high degree of auditor effort in performing procedures related to the
Company’s revenue recognition from certain product revenue.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming
our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of
controls relating to the revenue recognition process, including controls over the recognition of certain product revenue for
an amount that reflects the consideration which is expected from the sale of products when the Company satisfies a
performance obligation. These procedures also included, among others (i) testing certain product revenue transactions, on
a sample basis, by obtaining and inspecting source documents, such as purchase orders, invoices, contracts, proof of
shipment or delivery, and subsequent payment receipts; (ii) testing certain product revenue transactions by developing an
independent expectation of revenue and comparing the independent expectation to the amount recorded; and
(iii) confirming, on a sample basis, outstanding customer invoice balances as of December 28, 2024 and, for confirmations
not returned, obtaining and inspecting source documents, such as purchase orders, invoices, proof of shipment or
delivery, and subsequent payment receipts.
/s/ PricewaterhouseCoopers LLP
Los Angeles, California
February 26, 2025
We have served as the Company’s auditor since at least 1960, which were the Company’s first financial
statements subject to SEC reporting requirements. We have not been able to determine the specific year we began
serving as auditor of the Company or a predecessor company.
Avery Dennison Corporation | 2024 Annual Report
45

Consolidated Balance Sheets
(Dollars in millions, except per share amount)
December 28, 2024
December 30, 2023
Assets
Current assets:
Cash and cash equivalents
$
329.1
$
215.0
Trade accounts receivable, less allowances of $29.0 and $34.4 at year-end 2024 and
2023, respectively
1,466.2
1,414.9
Inventories
978.1
920.7
Other current assets
305.3
245.4
Total current assets
3,078.7
2,796.0
Property, plant and equipment, net
1,586.7
1,625.8
Goodwill
1,976.2
2,013.6
Other intangibles resulting from business acquisitions, net
755.3
849.1
Deferred tax assets
110.0
115.7
Other assets
897.3
809.6
Total assets
$ 8,404.2
$ 8,209.8
Liabilities and Shareholders’ Equity
Current liabilities:
Short-term borrowings and current portion of long-term debt and finance leases
$
592.3
$
622.2
Accounts payable
1,340.7
1,277.1
Accrued payroll and employee benefits
288.9
213.4
Accrued trade rebates
157.9
142.4
Income taxes payable
74.7
57.6
Other current liabilities
408.1
386.8
Total current liabilities
2,862.6
2,699.5
Long-term debt and finance leases
2,559.9
2,622.1
Long-term retirement benefits and other liabilities
434.6
500.3
Deferred tax liabilities and income taxes payable
234.8
260.0
Commitments and contingencies (see Notes 7 and 8)
Shareholders’ equity:
Common stock, $1 par value per share, authorized – 400,000,000 shares at year-end
2024 and 2023; issued – 124,126,624 shares at year-end 2024 and 2023;
outstanding – 79,800,396 and 80,495,585 shares at year-end 2024 and 2023,
respectively
124.1
124.1
Capital in excess of par value
840.6
854.5
Retained earnings
5,151.2
4,691.8
Treasury stock at cost, 44,326,228 and 43,631,039 shares at year-end 2024 and
2023, respectively
(3,347.5)
(3,134.4)
Accumulated other comprehensive loss
(456.1)
(408.1)
Total shareholders’ equity
2,312.3
2,127.9
Total liabilities and shareholders’ equity
$ 8,404.2
$ 8,209.8
See Notes to Consolidated Financial Statements
46
2024 Annual Report | Avery Dennison Corporation

Consolidated Statements of Income
(In millions, except per share amounts)
2024
2023
2022
Net sales
$8,755.7
$8,364.3
$9,039.3
Cost of products sold
6,225.0
6,086.8
6,635.1
Gross profit
2,530.7
2,277.5
2,404.2
Marketing, general and administrative expense
1,415.3
1,313.7
1,330.8
Other expense (income), net
71.6
180.9
(.6)
Interest expense
117.0
119.0
84.1
Other non-operating expense (income), net
(26.7)
(30.8)
(9.4)
Income before taxes
953.5
694.7
999.3
Provision for income taxes
248.6
191.7
242.2
Net income
$
704.9
$
503.0
$
757.1
Per share amounts:
Net income per common share
$
8.77
$
6.23
$
9.28
Net income per common share, assuming dilution
$
8.73
$
6.20
$
9.21
Weighted average number of shares outstanding:
Common shares
80.4
80.7
81.6
Common shares, assuming dilution
80.7
81.1
82.2
See Notes to Consolidated Financial Statements
Avery Dennison Corporation | 2024 Annual Report
47

Consolidated Statements of Comprehensive Income
(In millions)
2024
2023
2022
Net income
$704.9
$503.0
$757.1
Other comprehensive income (loss), net of tax:
Foreign currency translation:
Translation gain (loss)
(46.9)
(14.6)
(96.6)
Pension and other postretirement benefits:
Net gain (loss) recognized from actuarial gain/loss and prior service cost/credit
(1.3)
(25.2)
6.3
Reclassifications to net income
.8
(1.0)
2.8
Cash flow hedges:
Gain (loss) recognized on cash flow hedges
(5.4)
(7.0)
4.9
Reclassifications to net income
2.8
3.7
1.5
Fair value hedges:
Changes in excluded components of fair value hedges
2.0
—
—
Other comprehensive income (loss), net of tax
(48.0)
(44.1)
(81.1)
Total comprehensive income, net of tax
$656.9
$458.9
$676.0
See Notes to Consolidated Financial Statements
48
2024 Annual Report | Avery Dennison Corporation

Consolidated Statements of Shareholders’ Equity
(Dollars in millions, except per share amounts)
Common
stock, $1
par value
Capital in
excess of
par value
Retained
earnings
Treasury
stock
Accumulated
other
comprehensive
loss
Total
Balance as of January 1, 2022
$124.1
$862.3
$3,880.7
$(2,659.8)
$(282.9)
$1,924.4
Net income
—
—
757.1
—
—
757.1
Other comprehensive income (loss), net of tax
—
—
—
—
(81.1)
(81.1)
Repurchase of 2,173,416 shares for treasury
—
—
—
(379.5)
—
(379.5)
Issuance of 223,676 shares under stock-based
compensation plans
—
17.0
(4.4)
10.6
—
23.2
Contribution of 153,803 shares to 401(k) plan
—
—
20.1
6.9
—
27.0
Dividends of $2.93 per share
—
—
(238.9)
—
—
(238.9)
Balance as of December 31, 2022
$124.1
$879.3
$4,414.6
$(3,021.8)
$(364.0)
$2,032.2
Net income
—
—
503.0
—
—
503.0
Other comprehensive income (loss), net of tax
—
—
—
—
(44.1)
(44.1)
Repurchase of 780,721 shares for treasury
—
—
—
(137.5)
—
(137.5)
Issuance of 297,885 shares under stock-based
compensation plans
—
(24.8)
8.9
16.5
—
.6
Contribution of 168,404 shares to 401(k) plan
—
—
22.0
8.4
—
30.4
Dividends of $3.18 per share
—
—
(256.7)
—
—
(256.7)
Balance as of December 30, 2023
$124.1
$854.5
$4,691.8
$(3,134.4)
$(408.1)
$2,127.9
Net income
—
—
704.9
—
—
704.9
Other comprehensive income (loss), net of tax
—
—
—
—
(48.0)
(48.0)
Repurchase of 1,184,780 shares for treasury
—
—
—
(247.5)
—
(247.5)
Issuance of 340,048 shares under stock-based
compensation plans
—
(13.9)
7.7
26.8
—
20.6
Contribution of 149,543 shares to 401(k) plan
—
—
24.3
7.6
—
31.9
Dividends of $3.45 per share
—
—
(277.5)
—
—
(277.5)
Balance as of December 28, 2024
$124.1
$840.6
$5,151.2
$(3,347.5)
$(456.1)
$2,312.3
See Notes to Consolidated Financial Statements
Avery Dennison Corporation | 2024 Annual Report
49

Consolidated Statements of Cash Flows
(In millions)
2024
2023
2022
Operating Activities
Net income
$ 704.9
$ 503.0
$ 757.1
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation
197.1
187.4
177.4
Amortization
115.1
111.0
113.3
Provision for credit losses and sales returns
47.4
49.9
50.1
Stock-based compensation
28.7
22.3
47.4
Deferred taxes and other non-cash taxes
(18.5)
(24.4)
18.4
Other non-cash expense and loss (income and gain), net
67.2
37.1
23.5
Changes in assets and liabilities and other adjustments:
Trade accounts receivable
(107.3)
(16.7)
(22.1)
Inventories
(90.7)
111.7
(140.7)
Accounts payable
106.7
(87.6)
68.2
Taxes on income
40.2
(18.7)
18.9
Other assets
(48.0)
37.7
15.3
Other liabilities
(104.0)
(86.7)
(165.8)
Net cash provided by operating activities
938.8
826.0
961.0
Investing Activities
Purchases of property, plant and equipment
(208.8)
(265.3)
(278.1)
Purchases of software and other deferred charges
(31.0)
(19.8)
(20.4)
Proceeds from company-owned life insurance policies
—
48.1
—
Purchases of Argentine Blue Chip Swap securities
(34.2)
—
—
Proceeds from sales of Argentine Blue Chip Swap securities
24.0
—
—
Proceeds from sales of property, plant and equipment
.6
1.0
2.3
Proceeds from insurance and sales (purchases) of investments, net
10.1
1.9
1.9
Proceeds from sale of venture investment
—
—
1.1
Payments for acquisitions, net of cash acquired, and venture investments
(3.8)
(224.9)
(39.5)
Net cash used in investing activities
(243.1)
(459.0)
(332.7)
Financing Activities
Net increase (decrease) in borrowings with maturities of three months or less
(269.0)
(36.6)
34.6
Additional long-term borrowings
539.2
394.9
—
Repayments of long-term debt and finance leases
(308.1)
(255.9)
(6.3)
Dividends paid
(277.5)
(256.7)
(238.9)
Share repurchases
(247.5)
(137.5)
(379.5)
Net (tax withholding) proceeds related to stock-based compensation
(8.4)
(23.8)
(25.1)
Other
(4.8)
(1.6)
—
Net cash used in financing activities
(576.1)
(317.2)
(615.2)
Effect of foreign currency translation on cash balances
(5.5)
(2.0)
(8.6)
Increase (decrease) in cash and cash equivalents
114.1
47.8
4.5
Cash and cash equivalents, beginning of year
215.0
167.2
162.7
Cash and cash equivalents, end of year
$ 329.1
$ 215.0
$ 167.2
See Notes to Consolidated Financial Statements
50
2024 Annual Report | Avery Dennison Corporation

Notes to Consolidated Financial Statements
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Operations
We are a global materials science and digital identification solutions company. We are Making PossibleTM products
and solutions that help advance the industries we serve, providing branding and information solutions that optimize labor
and supply chain efficiency, reduce waste, advance sustainability, circularity and transparency, and better connect brands
and consumers. We design and develop labeling and functional materials, radio-frequency identification (“RFID”) inlays
and tags, software applications that connect the physical and digital, and offerings that enhance branded packaging and
carry or display information that improves the customer experience. We serve an array of industries worldwide, including
home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals and
automotive.
Principles of Consolidation
Our Consolidated Financial Statements include the accounts of majority-owned and controlled subsidiaries.
Intercompany accounts, transactions and profits are eliminated in consolidation.
Fiscal Year
Our fiscal years have generally consisted of 52 weeks, with every fifth or sixth fiscal year consisting of 53 weeks;
our 2024, 2023 and 2022 fiscal years consisted of 52-week periods ending December 28, 2024, December 30, 2023
and December 31, 2022, respectively.
Subsequent to fiscal year-end 2024, in January 2025, the Audit Committee of our Board of Directors approved a
change to our previous 52- or 53-week fiscal year generally ending on the Saturday closest to December 31 to a fiscal
year coincident with the calendar year. Our 2025 fiscal year that began on December 29, 2024 will end on December 31,
2025 and fiscal years 2026 and beyond will begin on January 1 and end on December 31.
Accounting Guidance Updates
Segment Disclosures
In the fourth quarter of 2024, we adopted guidance that requires additional disclosures about significant segment
expenses. See Note 15, “Segment and Disaggregated Revenue Information,” for more information.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America, or GAAP, requires management to make estimates and assumptions for the reporting period and as of
the date of our financial statements. These estimates and assumptions affect the reported amounts of assets and
liabilities, the disclosure of contingent liabilities, and the reported amounts of revenue and expense. As the effects of
future events cannot be determined, actual results could differ significantly from these estimates.
Cash and Cash Equivalents
Cash and cash equivalents generally consist of cash on hand, deposits in banks, cash-in-transit, and bank drafts
and short-term investments with maturities of three months or less when purchased or received. The carrying value of
these assets approximates fair value due to the short maturity of these instruments.
Inventories
We state inventories at the lower of cost or net realizable value and categorize them as raw materials,
work-in-progress or finished goods. Cost is determined using the first-in, first-out method. We record inventory that is
damaged, obsolete, excess and slow-moving to cost of products sold and establish a lower cost basis for that inventory.
Slow-moving inventory is reviewed by category and may be recognized partially or fully to cost of products sold
depending on the type of product, level of usage and length of time the product has been included in inventory.
Avery Dennison Corporation | 2024 Annual Report
51

Trade Accounts Receivable
We record trade accounts receivable at the invoiced amount. Our allowances for credit losses reflect customer
trade accounts receivable that are estimated to be partially or entirely uncollectible. These allowances are used to reduce
gross trade receivables to their net realizable values. We record these allowances based on estimates related to the
financial condition of customers; the aging of receivable balances; our historical collection experience; and current and
expected future macroeconomic and market conditions.
Property, Plant and Equipment
We generally compute depreciation using the straight-line method over the estimated useful lives of the
respective assets, ranging from ten to 45 years for buildings and improvements and three to 15 years for machinery and
equipment. Leasehold improvements are depreciated over the shorter of the useful life of the asset and the term of the
associated lease. We expense maintenance and repair costs as incurred; we capitalize renewals and improvements. Upon
the sale or retirement of assets, the accounts are relieved of the cost and the related accumulated depreciation, with any
resulting gain or loss included in net income.
Leases
Our leases primarily relate to office and warehouse space, machinery, transportation, and equipment for
information technology. We determine if an arrangement is a lease or contains a lease at inception. For lease accounting
purposes, we do not separate lease and nonlease components, nor do we record operating or finance lease assets and
liabilities for short-term leases. We have options to renew or terminate some of our leases. We evaluate renewal and
termination options at the lease commencement date and over the lease term to determine if we are reasonably certain to
exercise these options. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate
based on the information available at the lease commencement date to determine the present value of lease payments.
We recognize expense for operating leases on a straight-line basis over the lease term, with variable lease payments
recognized in the periods in which they are incurred.
Software
We capitalize software costs incurred during the application development stage of software development,
including costs incurred for design, coding, installation to hardware, testing, and upgrades and enhancements that
provide the software or hardware with additional functionalities and capabilities. We expense software costs, including
internal and external training costs and maintenance costs, incurred during the preliminary project stage and the post-
implementation and/or operation stage. Capitalized software, which is included in “Other assets” in the Consolidated
Balance Sheets, is amortized on a straight-line basis over the estimated useful life of the software, which is generally
between five and ten years.
Cloud Computing Arrangements
We capitalize certain costs incurred during the application development stage of implementation under a hosting
arrangement that is a service contract. We expense costs incurred during the preliminary project stage and the post-
implementation and/or operation stage. Capitalized implementation costs, which are included in “Other assets” in the
Consolidated Balance Sheets, are amortized on a straight-line basis over the term of the hosting arrangement plus
optional renewal periods, which is generally between five and ten years.
Venture Investments
We primarily invest in privately held companies and utilize the measurement alternative for equity investments that do
not have readily determinable fair values, measuring them at cost less impairment plus or minus observable price changes in
an orderly transaction. Venture investments that are publicly traded companies are recorded at fair value using Level 1 inputs.
The carrying value of our venture investments is included in “Other assets” in the Consolidated Balance Sheets.
See Note 9, “Fair Value Measurements,” for more information.
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2024 Annual Report | Avery Dennison Corporation

Impairment of Long-lived Assets
We record impairment charges when the carrying amounts of long-lived assets are determined not to be
recoverable. We measure recoverability by comparing the undiscounted cash flows expected from the applicable asset or
asset group’s use and eventual disposition to its carrying value. We calculate the amount of impairment loss as the
excess of the carrying value over the fair value. Historically, changes in market conditions and management strategy have
caused us to reassess the carrying amount of our long-lived assets.
Goodwill and Other Intangibles Resulting from Business Acquisitions
We account for business combinations using the acquisition method, with the excess of the acquisition cost over
the fair value of acquired net tangible assets and identified intangible assets considered goodwill. As a result, we disclose
goodwill separately from other intangible assets. Other identifiable intangibles include customer relationships, patented
and other developed technology, and trade names and trademarks.
We perform an annual impairment test of goodwill during the fourth quarter and, as necessary, if changes in facts
and circumstances that indicate the fair value of a reporting unit may be less than its carrying value. Factors that may
cause us to perform an impairment test outside of our annual assessment include significant underperformance of a
business relative to expected operating results, significant adverse economic and industry trends, significant decline in
our market capitalization for an extended period of time relative to net book value, or our decision to divest a portion of a
reporting unit. In performing impairment tests, we have the option to first assess qualitative factors to determine whether
it is necessary to perform a quantitative assessment for goodwill impairment. If the qualitative assessment indicates that
it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value, we perform a quantitative
assessment. A quantitative assessment primarily uses the present value (discounted cash flow) method to determine the
fair value of reporting units with goodwill.
We compare the fair value of each reporting unit to its carrying amount, and, to the extent the carrying amount
exceeds the unit’s fair value, we recognize an impairment of goodwill for the excess up to the amount of goodwill of that
reporting unit.
In consultation with outside specialists, we estimate the fair value of our reporting units using various valuation
techniques, with the primary technique being a discounted cash flow analysis. A discounted cash flow analysis requires
us to make various assumptions, including a reporting unit’s respective forecasted sales, operating margins and growth
rates, as well as discount rates. Our assumptions about discount rates are based on the weighted average cost of capital
for comparable companies. Our assumptions about sales, operating margins and growth rates are based on our forecasts,
business plans, economic projections, anticipated future cash flows, and marketplace data. We also make assumptions
for varying perpetual growth rates for periods beyond our long-term business plan period. We base our fair value
estimates on projected financial information and assumptions that we believe are reasonable. However, actual future
results may differ materially from these estimates and projections. The valuation methodology we use to estimate the fair
value of reporting units requires inputs and assumptions that reflect current market conditions, as well as the impact of
planned business and operational strategies that require management judgment. The estimated fair value could increase
or decrease depending on changes in the inputs and assumptions.
We test indefinite-lived intangible assets, consisting of trade names and trademarks, for impairment in the fourth
quarter or whenever events or circumstances indicate that it is more-likely-than-not that their carrying amounts exceed
their fair values. In performing the impairment tests, we have the option first to assess qualitative factors to determine
whether it is necessary to perform a quantitative assessment for indefinite-lived intangible asset impairment. If we decide
not to perform a qualitative assessment, or if the qualitative assessment indicates that it is more-likely-than-not that the
fair value of an indefinite-lived intangible asset is less than its carrying value, we perform a quantitative assessment. Fair
value is estimated as the discounted value of future revenues using a royalty rate that a third party would pay to use the
asset. Variation in the royalty rates could impact our estimate of fair value. If the carrying amount of an asset exceeds its
fair value, an impairment loss is recognized in an amount equal to that excess.
We amortize finite-lived intangible assets, consisting of customer relationships, patented and other developed
technology, trade names and trademarks, and other intangibles, on a straight-line basis over their estimated useful lives.
See Note 3, “Goodwill and Other Intangibles Resulting from Business Acquisitions,” for more information.
Avery Dennison Corporation | 2024 Annual Report
53

Foreign Currency
We translate asset and liability accounts of international operations into U.S. dollars at current rates. Revenues and
expenses are translated at the weighted average currency rate for the fiscal year. We record gains and losses resulting
from hedging the value of investments in certain international operations and from the translation of balance sheet
accounts directly as a component of other comprehensive income.
We account for our operations in Argentina as highly inflationary because the country’s three-year cumulative
inflation rate exceeds 100%. As a result, the functional currency of our Argentine subsidiary is the U.S. dollar.
Financial Instruments
We enter into foreign currency exchange derivative contracts to reduce our risk from exchange rate fluctuations
associated with receivables, payables, loans and firm commitments denominated in certain foreign currencies that arise
primarily as a result of our operations outside the U.S. From time to time, we enter into interest rate contracts to help
manage our exposure to certain interest rate fluctuations. We also enter into futures contracts to hedge certain price
fluctuations for a portion of our anticipated domestic purchases of natural gas. The maximum length of time for which we
hedge our exposure to the variability in future cash flows is 36 months for forecasted foreign currency exchange and
commodity transactions and 10 years for cross-currency swap transactions.
On the date we enter into a derivative contract, we determine whether the derivative will be designated as a
hedge. Other derivatives not designated as hedges are recorded at fair value, with changes in fair value recognized in
earnings. Our policy is not to purchase or hold any foreign currency, interest rate or commodity contracts for trading
purposes.
All derivative financial instruments are accounted for at fair value and recognized as assets or liabilities in the
Consolidated Balance Sheets. Accounting for the gain or loss resulting from the changes in the fair value of a derivative
financial instrument depends on whether it has been designated as part of a hedging relationship and is highly effective,
as well as the nature of the hedging activity. We formally document all relationships between derivative financial
instruments accounted for as designated hedges, the hedged item, the method for assessing effectiveness and the
treatment of excluded components. These financial instruments can be designated as:
•
Fair value hedges - Hedges of the change in the fair value of a recognized asset or liability. The gain or loss
from the derivative, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk,
are recognized in income during the period of the change in fair value. Hedge effectiveness is based on the
spot method and expected to be perfectly effective. Excluded components are not included in the
effectiveness assessment, recognized in a systematic and rational method over the term of the contracts and
recorded to the same income statement line as the item being hedged.
•
Cash flow hedges - Hedges to reduce the variability of future expected cash flows. For derivative instruments
that are designated and qualify as cash flow hedges, the entire gain or loss on the derivative is reported as a
component of “Accumulated other comprehensive loss” and reclassified into earnings in the same period(s)
during which the hedged transaction impacts earnings. Gains and losses on these derivatives, representing
hedge components excluded from the assessment of effectiveness, are recognized in current earnings.
•
Net investment hedges - Hedges of the currency exposure related to a net investment in a foreign operation.
The gain or loss from the derivative financial instrument is recognized as foreign currency translation in
“Accumulated other comprehensive loss” until the hedged net investment is either sold or substantially
liquidated. Hedge effectiveness is based on the spot method, with no ineffectiveness expected over the
duration of the hedging relationship. Excluded components are not included in the effectiveness assessment,
recorded in a systematic and rational basis over the term of the contracts and recorded to “Marketing, general
and administrative expense” in the Consolidated Statements of Income.
We assess, both at the inception of any hedge and on an ongoing basis, whether our hedges are highly effective. If
we determine that a hedge is not highly effective, we prospectively discontinue hedge accounting. For cash flow hedges,
we record gains and losses as components of other comprehensive income and reclassify them into earnings in the same
period during which the hedged transaction affects earnings. In the event that the anticipated transaction is no longer
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2024 Annual Report | Avery Dennison Corporation

highly probable to occur, we recognize the change in fair value of the hedging instrument in current period earnings. We
recognize changes in fair value hedges in current period earnings. We also recognize changes in the fair value of
underlying hedged items (such as recognized assets or liabilities) in current period earnings and offset the changes in the
fair value of the derivative.
In the Consolidated Statements of Cash Flows, hedges are classified in the same category as the hedged item.
See Note 5, “Financial Instruments,” for more information.
Fair Value Measurements
We define fair value as the price that would be received from selling an asset or paid for transferring a liability in
an orderly transaction between market participants at the measurement date. In determining fair value, we consider the
principal or most advantageous market in which we would transact and the market-based risk measurements or
assumptions that market participants would use in pricing the asset or liability.
We determine fair value based on a three-tier fair value hierarchy, which we use to prioritize the inputs used in
measuring fair value. These tiers consist of Level 1, which are observable inputs such as quoted prices in active markets;
Level 2, which are inputs other than quoted prices in active markets that are either directly or indirectly observable; and
Level 3, which are unobservable inputs for which little or no market data exists, requiring us to develop our own
assumptions to determine the best estimate of fair value.
Revenue Recognition
Substantially all of our revenue is derived from the sale of products. Our Materials Group reportable segment sells
pressure-sensitive label materials, films, performance tapes and fasteners. Our Solutions Group reportable segment sells
a wide variety of branding and information solutions-oriented products, such as tickets, tags, labels (including RFID
inlays), as well as related equipment, services and supplies, that provide our customers with solutions to optimize
branding and engagement with their consumers and enable item visibility and traceability. We recognize revenue for an
amount that reflects the consideration which we expect from the sale of our products when we satisfy a performance
obligation by transferring control of our products to a customer. We consider a number of factors in determining when we
have transferred control to a customer, including the following: (i) our present right to payment; (ii) the customer’s legal
title to the asset; (iii) physical possession of the asset; (iv) the customer’s significant risks and rewards of ownership of the
asset; and (v) the customer’s acceptance of the asset. Generally, there are no substantive differences in revenue
recognition considerations among our various products. Control generally transfers to a customer upon shipment or
delivery, depending on the specific terms of sale with the customer.
Our payment terms with customers are generally consistent with those used in the industries and regions in which
we operate.
We accept sales returns in certain limited circumstances. We record a liability for estimated returns and a
corresponding reduction to sales in the amount we expect to repay or credit customers, which we base on historical
returns and outstanding customer claims. We update our estimates each reporting period.
Sales rebates, discounts and other customer concessions represent variable consideration and are common in the
industries and regions in which we operate, which we account for as a reduction to sales based on estimates at the time
at which products are sold. We base these estimates on our historical experience, as well as current information such as
sales forecasts. We regularly review our estimates and adjust the revenue recognized from sales as necessary as
additional information becomes available.
We exclude sales tax, value-added tax and other taxes we collect from customers from sales. We account for
shipping and handling activities after control of a product is transferred to a customer as fulfillment costs and not as
separate performance obligations. As a practical expedient, we have elected not to disclose the value of unsatisfied
performance obligations for contracts with an expected length of less than one year. We generally expense sales
commissions when incurred because their expected amortization period is one year or less. We record these costs in
“Marketing, general and administrative expense” in the Consolidated Statements of Income.
Avery Dennison Corporation | 2024 Annual Report
55

Research and Development
Research and development costs are related to research, design and testing of new products and applications,
which we expense as incurred.
Long-Term Incentive Compensation
No long-term incentive compensation expense was capitalized in 2024, 2023 or 2022.
Valuation of Stock-Based Awards
We base our stock-based compensation expense on the fair value of awards, adjusted for estimated forfeitures,
amortized on a straight-line basis over the requisite service period for stock options and restricted stock units (“RSUs”).
We base compensation expense for performance units (“PUs”) on the fair value of awards, adjusted for estimated
forfeitures, and amortized on a straight-line basis as these awards cliff-vest at the end of the requisite service period. We
base compensation expense related to market-leveraged stock units (“MSUs”) on the fair value of awards, adjusted for
estimated forfeitures, and amortized on a graded-vesting basis over their respective performance periods.
Compensation expense for awards with a market condition as a performance objective, which includes MSUs and
a component of PUs, is not adjusted if the condition is not met, as long as the requisite service period is met.
We estimate the fair value of stock options as of the date of grant using the Black-Scholes option-pricing model.
This model requires input assumptions for our expected dividend yield, expected stock price volatility, risk-free interest
rate and expected option term.
We determine the fair value of RSUs and the component of PUs that is subject to the achievement of a
performance objective using a financial performance condition based on the fair market value of our common stock as of
the date of grant, adjusted for foregone dividends. Over the performance period of the PUs, the estimated number of
shares of our common stock issuable upon vesting is adjusted upward or downward from the target shares at the time of
grant based on the probability of the performance objectives established for the award being achieved.
We determine the fair value of stock-based awards that are subject to the achievement of performance objectives
based on a market condition, which includes MSUs and the other component of PUs, using the Monte-Carlo simulation
method, which utilizes multiple input variables, including expected stock price volatility and other assumptions appropriate for
determining fair value, to estimate the probability of satisfying the performance objectives established for the award.
Certain of these assumptions are based on management’s estimates, in consultation with outside specialists.
Significant changes in assumptions for future awards and actual forfeiture rates could materially impact stock-based
compensation expense and our results of operations.
Valuation of Cash-Based Awards
Cash-based awards consist of long-term incentive units (“LTI Units”) granted to eligible employees. We classify
LTI Units as liability awards and remeasure them at each quarter-end over the applicable vesting or performance period.
In addition to LTI Units with terms and conditions that mirror those of RSUs, we also grant certain employees LTI Units
with terms and conditions that mirror those of PUs and MSUs.
Forfeitures
We estimate expected forfeitures in determining the compensation cost to be recognized each period, rather than
accounting for forfeitures as they occur. We record changes in estimated forfeiture rates as cumulative adjustments in the
period estimates are revised.
See Note 12, “Long-term Incentive Compensation,” for more information.
Taxes Based on Income
Because we are subject to income tax in the U.S. and multiple foreign jurisdictions, judgment is required in
evaluating and estimating our worldwide provision for income taxes, accruals for taxes, deferred taxes and tax positions.
Our provision for income taxes is determined using the asset and liability approach in accordance with GAAP. Under this
approach, deferred taxes represent the expected future tax consequences of temporary differences between the carrying
amounts and tax bases of assets and liabilities. We record a valuation allowance to reduce our deferred tax assets when
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2024 Annual Report | Avery Dennison Corporation

uncertainty regarding their realizability exists. We recognize and measure our uncertain tax positions following the more-
likely-than-not threshold for recognition and measurement for tax positions we take or expect to take on a tax return.
See Note 14, “Taxes Based on Income,” for more information.
Recent Accounting Requirements
In November 2024, the FASB issued guidance expanding the disclosure requirements for certain expenses in
notes to consolidated financial statements. The guidance is effective for annual reporting periods beginning after
December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We
are currently assessing the impact of adopting this guidance on our financial statement disclosures.
NOTE 2. BUSINESS ACQUISITIONS
2023 Business Acquisitions
On November 23, 2023, we completed our business acquisition of Silver Crystal Group (“Silver Crystal”), a
Canada-based provider of sports apparel customization and application solutions across in-venue, direct-to-business and
e-commerce platforms. On May 22, 2023, we completed our business acquisition of LG Group, Inc. (“Lion Brothers”), a
Maryland-based designer and manufacturer of apparel brand embellishments. On March 6, 2023, we completed our
business acquisition of Thermopatch, Inc. (“Thermopatch”), a New York-based manufacturer specializing in labeling,
embellishments and transfers for the sports, industrial laundry, workwear and hospitality industries. These acquisitions
expanded the product portfolio in our Solutions Group reportable segment.
The acquisitions of Silver Crystal, Lion Brothers and Thermopatch are referred to collectively as the “2023
Acquisitions.”
The aggregate purchase consideration, including purchase consideration payable, for the 2023 Acquisitions was
approximately $231 million. We funded the 2023 Acquisitions using cash and commercial paper borrowings. In addition
to the cash paid at closing, the sellers in one of these acquisitions are eligible for earn-out payments of up to $5 million,
subject to the acquired company achieving certain post-acquisition performance targets. As of the acquisition date, we
included an estimate of the fair value of these earn-out payments in the aggregate purchase consideration.
The 2023 Acquisitions were not material, individually or in the aggregate, to the Consolidated Financial
Statements.
2022 Business Acquisitions
In January 2022, we completed our business acquisitions of TexTrace AG (“TexTrace”), a Switzerland-based
technology developer specializing in custom-made woven and knitted RFID products that can be sewn onto or inserted
into garments, and Rietveld Serigrafie B.V. and Rietveld Screenprinting Serigrafi Baski Matbaa Tekstil Ithalat Ihracat
Sanayi ve Ticaret Limited Sirketi (collectively, “Rietveld”), a Netherlands-based provider of external embellishment
solutions and application and printing methods for performance brands and team sports in Europe. These acquisitions
expanded the product portfolio in our Solutions Group reportable segment. The acquisitions of TexTrace and Rietveld are
referred to collectively as the “2022 Acquisitions.”
The aggregate purchase consideration for the 2022 Acquisitions was approximately $35 million. We funded the
2022 Acquisitions using cash and commercial paper borrowings. In addition to the cash paid at closing, the sellers in one
of these acquisitions are eligible for earn-out payments of up to $30 million, subject to the acquired company achieving
certain post-acquisition performance targets. As of the acquisition date, we included an estimate of the fair value of these
earn-out payments in the aggregate purchase consideration.
The 2022 Acquisitions were not material, individually or in the aggregate, to the Consolidated Financial
Statements.
Avery Dennison Corporation | 2024 Annual Report
57

NOTE 3. GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS
Goodwill
Results from our annual goodwill impairment test in the fourth quarter of 2024 indicated that no impairment
occurred during 2024. The assumptions used in our assessment were primarily based on Level 3 inputs.
Changes in the net carrying amount of goodwill for 2024 and 2023 by reportable segment are shown below.
(In millions)
Materials
Group
Solutions
Group
Total
Goodwill as of December 31, 2022
$618.7
$1,243.7
$1,862.4
Acquisitions(1)
—
135.0
135.0
Translation adjustments
12.0
4.2
16.2
Goodwill as of December 30, 2023
630.7
1,382.9
2,013.6
Acquisition adjustments(2)
—
(2.7)
(2.7)
Translation adjustments
(24.6)
(10.1)
(34.7)
Goodwill as of December 28, 2024
$606.1
$1,370.1
$1,976.2
(1)
Goodwill acquired related to the 2023 Acquisitions. We expect substantially all of the recognized goodwill related to the 2023 Acquisitions not to be
deductible for income tax purposes.
(2)
Measurement period adjustments related to the finalization of the purchase price allocation for our 2023 Acquisitions.
The carrying amounts of goodwill at December 28, 2024 and December 30, 2023 were net of accumulated
impairment losses of $820 million recognized in fiscal year 2009 by our Solutions Group reportable segment.
Indefinite-Lived Intangible Assets
Results from our annual indefinite-lived intangible assets impairment test in the fourth quarter indicated that no
impairment occurred in 2024. The carrying value of indefinite-lived intangible assets resulting from business acquisitions,
consisting of trade names and trademarks, was $154.5 million and $155.3 million at December 28, 2024 and
December 30, 2023, respectively.
Finite-Lived Intangible Assets
In connection with the 2023 Acquisitions, we acquired approximately $94 million of identifiable finite-lived
intangible assets, which consisted of customer relationships, patented and other developed technology, and trade names
and trademarks. We utilized the income approach to estimate the fair value of acquired identifiable intangibles, primarily
using Level 3 inputs. We applied significant judgment in determining the fair value of intangible assets, which included
our estimates and assumptions with respect to estimated future revenue and related profit margins, customer retention
rates, technology migration curves, royalty rates, discount rates and economic lives assigned to the acquired intangible
assets.
The table below summarizes the amounts and weighted average useful lives of the intangible assets associated
with the 2023 Acquisitions as of their respective acquisition dates.
Amount
(in millions)
Weighted
average
amortization
period
(in years)
Customer relationships
$
68.8
11
Patented and other developed technology
22.2
7
Trade names and trademarks
3.0
6
Refer to Note 2, “Business Acquisitions,” for more information.
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The table below sets forth our finite-lived intangible assets resulting from business acquisitions at December 28,
2024 and December 30, 2023, which continue to be amortized.
2024
2023
(In millions)
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Customer relationships
$
916.0
$438.5
$477.5
$
922.5
$383.7
$538.8
Patented and other
developed technology
275.2
156.8
118.4
278.3
130.2
148.1
Trade names and trademarks
17.1
12.8
4.3
17.4
11.7
5.7
Other intangibles
3.2
2.6
.6
3.2
2.0
1.2
Total
$1,211.5
$610.7
$600.8
$1,221.4
$527.6
$693.8
Amortization expense for finite-lived intangible assets resulting from business acquisitions was $89.4 million for
2024, $86.3 million for 2023 and $81.8 million for 2022.
We expect estimated amortization expense for finite-lived intangible assets resulting from business acquisitions
for each of the next five fiscal years and thereafter to be as follows:
(In millions)
Estimated
Amortization
Expense
2025
$ 88.2
2026
85.4
2027
85.0
2028
77.2
2029
61.8
2030 and thereafter
203.2
NOTE 4. DEBT
Short-Term Borrowings
We had no outstanding borrowings from U.S. commercial paper as of December 28, 2024 and $112 million of
outstanding borrowings from U.S. commercial paper issuances as of December 30, 2023 with a weighted average
interest rate of 5.54%.
We have a Euro-Commercial Paper Program under which we may issue unsecured commercial paper notes up to
a maximum aggregate amount outstanding of $500 million. Proceeds from issuances under this program may be used for
general corporate purposes. The maturities of the notes vary, but may not exceed 364 days from the date of issuance.
Our payment obligations with respect to any notes issued under this program are backed by our revolving credit facility
(the “Revolver”). There are no financial covenants under this program. We had no outstanding balance as of
December 28, 2024 and $199.2 million outstanding under this program as of December 30, 2023 with a weighted
average interest rate of 4.13%.
Short-Term Credit Facilities
In June 2024, we entered into a Credit Agreement (the “Credit Agreement”) related to the Revolver to borrow up
to an aggregate of $1.2 billion through its maturity date of June 26, 2029. The Revolver refinanced the prior revolving
credit facility under the Fifth Amended and Restated Credit Agreement dated as of February 13, 2020, as amended.
Pursuant to the Credit Agreement, the commitments under the Revolver may be increased by up to $600 million, subject
to lender approvals and customary requirements. Under certain circumstances, we may request that the commitments
under the Revolver be extended for one-year periods in accordance with the terms and conditions of the Credit
Agreement. We use the Revolver as a back-up facility for our commercial paper program and for other corporate
purposes.
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59

No balance was outstanding under the Revolver as of December 28, 2024 or our prior revolving credit facility as of
December 30, 2023. Commitment fees associated with revolving credit facilities in 2024, 2023 and 2022 were
$1.5 million, $1.2 million and $0.9 million, respectively.
In addition to the Revolver, we have short-term lines of credit available in various countries of approximately
$261 million in the aggregate at December 28, 2024. These lines may be cancelled at any time by us or the issuing banks.
Borrowings under our short-term lines of credit were not material as of December 28, 2024 and December 30, 2023.
From time to time, we provide guarantees on certain arrangements with banks. Our exposure to these guarantees
is not material.
Long-Term Borrowings
In November 2024, we issued €500 million of senior notes, due November 4, 2034, which bear an interest rate of
3.750% per year, payable annually in arrears. Our net proceeds from this issuance, after deducting underwriting
discounts and offering expenses, were approximately €495 million ($539 million), which we intend to use to repay our
€500 million of senior notes maturing in March 2025 and for general corporate purposes.
In August 2024, we repaid our $300 million of senior notes at maturity using cash flows from operations and
commercial paper borrowings.
During 2024, we reclassified our $5 million of medium-term notes due in the third quarter of 2025, $25 million of
medium-term notes due in the second quarter of 2025 and €500 million of senior notes due in the first quarter of 2025
from “Long-term debt and finance leases” to “Short-term borrowings and current portion of long-term debt and finance
leases” in the Consolidated Balance Sheets.
In March 2023, we issued $400 million of senior notes, due March 15, 2033, which bear an interest rate of
5.750% per year, payable semiannually in arrears. Our net proceeds from this issuance, after deducting underwriting
discounts and offering expenses, were $394.9 million, which we used to repay indebtedness under our commercial paper
programs and our $250 million of senior notes that matured on April 15, 2023.
Our long-term debt, and related interest rates, at year-end 2024 and 2023 is shown below.
(In millions)
2024
2023
Long-term debt
Medium-term notes:
Series 1995 due 2025
$
30.0
$
30.0
Long-term notes:
Senior notes due 2024 at 0.85%
—
299.6
Senior notes due 2025 at 1.25%(1)
521.1
552.6
Senior notes due 2028 at 4.875%
497.4
496.7
Senior notes due 2030 at 2.650%
496.7
496.1
Senior notes due 2032 at 2.25%
495.7
495.1
Senior notes due 2033 at 6.0%
149.3
149.2
Senior notes due 2033 at 5.75%
395.8
395.3
Senior notes due 2034 at 3.75%(1)
515.9
—
Less amount classified as current
(551.1)
(299.6)
Total long-term debt(2)
$2,550.8
$2,615.0
(1)
These senior notes are euro-denominated. The senior notes due in 2025 and 2034 each have a face value of €500 million.
(2)
Included unamortized debt issuance costs and debt discounts of $12.6 million and $7.9 million, respectively, as of year-end 2024 and $11.3 million
and $7.4 million, respectively, as of year-end 2023.
At year-end 2024 and 2023, our medium-term notes had accrued interest at a weighted average fixed rate of
7.5%.
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2024 Annual Report | Avery Dennison Corporation

We expect maturities of our long-term debt for each of the next five fiscal years and thereafter to be as follows:
Year
(In millions)
2025
$
551.2
2026
—
2027
—
2028
500.0
2029
—
2030 and thereafter
2,071.2
Refer to Note 7, “Commitments and Leases,” for information related to finance leases.
Other
The Revolver contains a financial covenant requiring that we maintain a specified ratio of total debt minus
unrestricted cash and cash equivalents in excess of $50 million to a certain measure of income. As of December 28, 2024
and December 30, 2023, we were in compliance with this financial covenant.
Our total interest costs in 2024, 2023 and 2022 were $124.0 million, $126.5 million and $89.8 million,
respectively, of which $7.0 million, $7.5 million and $5.7 million, respectively, was capitalized as part of the cost of
property, plant and equipment, capitalized software and capitalized implementation costs associated with cloud
computing arrangements.
The estimated fair value of our long-term debt is primarily based on the credit spread above U.S. Treasury
securities or euro government bond securities, as applicable, on notes with similar rates, credit ratings and remaining
maturities. The fair value of short-term borrowings, which includes commercial paper issuances and short-term lines of
credit, approximates their carrying value given their short duration. The fair value of our total debt was $3.01 billion at
December 28, 2024 and $3.11 billion at December 30, 2023. Fair value amounts were determined based primarily on
Level 2 inputs. Refer to Note 1, “Summary of Significant Accounting Policies,” for more information.
NOTE 5. FINANCIAL INSTRUMENTS
We use various derivative financial instruments to manage risks in foreign currency exchange rates, commodity
prices and interest rates. We recognize derivative financial instruments as either assets or liabilities at fair value in the
Consolidated Balance Sheets.
Fair Value Hedges
During 2024, we entered into foreign currency forward contracts to hedge a portion of our €500 million of senior
notes due in the first quarter of 2025 and €500 million of senior notes due in the fourth quarter of 2034 to offset changes
in the fair value of the hedged item attributable to foreign currency risk. The foreign currency forward contracts hedging
our €500 million of senior notes due in the fourth quarter of 2034 have a maturity date of December 2025.
Cash Flow Hedges
During 2020, we entered into U.S. dollar to euro cross-currency swap contracts with a total notional amount of
$250 million to effectively convert our fixed-rate U.S. dollar-denominated debt into euro-denominated debt, including
semiannual interest payments and the payment of principal at maturity. During the term of the contract, which ends on
April 30, 2030, we pay fixed-rate interest in euros and receive fixed-rate interest in U.S. dollars.
We designate commodity forward contracts on forecasted purchases of commodities as cash flow hedges.
During 2024, we entered into interest rate forward-starting swap contracts that we designated as cash flow
hedges that were terminated upon the issuance of our €500 million of senior notes due in the fourth quarter of 2034. The
resulting gain will be amortized to interest expense over the term of the hedged fixed-rate interest payments.
Avery Dennison Corporation | 2024 Annual Report
61

Net Investment Hedges
During 2024, we entered into foreign currency forward contracts and zero-cost collars, combining each pair as net
investment hedges for accounting purposes. The objective of the hedging activity is to minimize the effect of foreign
currency exchange rates on our net investment in certain foreign operations between the sold put strike and the
purchased call strike rates of the contracts. The notional amount of these hedges are approximately €420 million and
€500 million with maturity dates in March 2025 and December 2025, respectively.
Other Derivatives
Our outstanding foreign currency exchange contracts as of December 28, 2024 were recorded in various
currencies, primarily the U.S. dollar, Canadian dollar, euro, Chinese renminbi, British pound sterling and Hong Kong dollar.
For other derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings.
Derivative Financial Statement Impacts
The following table shows the fair value and balance sheet locations of other derivatives as of December 28, 2024
and December 30, 2023:
(In millions)
Notional
Amount
Other
Current
Assets
Other
Non-
Current
Assets
Other
Current
Liabilities
Other
Non-
Current
Liabilities
Type of Hedge
December 28, 2024
Derivatives designated as hedges:
Foreign currency forward contracts
$
958.9
$
.2
$
—
$36.7
$ —
Fair value
Cross-currency swap contracts
250.0
—
10.9
—
—
Cash flow
Commodity contracts
2.9
.4
—
.4
—
Cash flow
Foreign currency forward contracts with
collars
958.9
17.8
—
.2
—
Net investment
Total
$18.4
$10.9
$37.3
$ —
Derivatives not designated as hedges:
Foreign currency exchange contracts
$1,741.8
$11.9
$
—
$ 4.2
$ —
December 30, 2023
Derivatives designated as hedges:
Cross-currency swap contracts
$
250.0
$
—
$ 2.3
$
—
$ —
Cash flow
Commodity contracts
5.8
—
—
1.4
.2
Cash flow
Total
$
—
$ 2.3
$ 1.4
$ .2
Derivatives not designated as hedges:
Foreign currency exchange contracts
$1,336.6
$ 6.3
$
—
$ 6.0
$ —
The following tables show the components of the net gains (losses) recognized in income related to derivative
instruments:
(In millions)
2024
2023
2022
Gain (loss) on derivatives designated as fair value hedges:
Foreign currency forward contracts - Marketing, general and administrative expense
$(36.4)
$ —
$ —
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2024 Annual Report | Avery Dennison Corporation

The impact of the hedged items associated with the derivative in the table above are recorded to the same income
statement line as the derivative instrument. The net gains (losses) recognized in income related to our cross-currency
swap contracts and commodity contracts were not material in 2024, 2023 or 2022.
The gain recognized in translation for the net investment hedges was approximately $15 million for the year
ended December 28, 2024.
The following table shows the components of the net gains (losses) recognized in income related to the derivative
instruments not designated as hedges:
(In millions)
Statements of Income Location
2024
2023
2022
Foreign currency exchange contracts
Cost of products sold
$
3.2
$3.4
$ 5.6
Foreign currency exchange contracts
Marketing, general and administrative
expense
(15.2)
5.5
(4.3)
$(12.0)
$8.9
$ 1.3
NOTE 6. PENSION AND OTHER POSTRETIREMENT BENEFITS
Defined Benefit Plans
We sponsor a number of defined benefit plans, the accrual of benefits under some of which has been frozen,
covering eligible employees in the U.S. and certain other countries. Benefits payable to an employee are based primarily
on years of service and the employee’s compensation during the course of his or her employment with our company.
We are also obligated to pay unfunded termination indemnity benefits to certain employees outside the U.S.,
which are subject to applicable agreements, laws and regulations. No costs related to these benefits have been included
in the disclosures below because they have not been significant.
Plan Assets
Assets in our non-U.S. plans are invested in accordance with locally accepted practices and primarily include
equity securities, fixed income securities, insurance contracts and cash. Asset allocations and investments vary by country
and plan. Our target plan asset investment allocation for our non-U.S. plans in the aggregate is approximately 25% in
equity securities, 61% in fixed income securities and cash, and 14% in insurance contracts and other investments, subject
to periodic fluctuations among these asset classes.
Fair Value Measurements
The valuation methodologies we use for assets measured at fair value are described below.
Cash is valued at nominal value. Cash equivalents and mutual funds are valued at fair value as determined by
quoted market prices, based upon the net asset value (“NAV”) of shares held at year-end. Pooled funds are structured as
collective trusts, not publicly traded and valued by calculating NAV per unit based on the NAV of the underlying funds/
trusts as a practical expedient for the fair value of the pooled funds. The pooled funds are categorized by the investment
strategy, which is primarily equity and fixed income securities. The pooled funds categorized as other investments are
primarily investments in real estate funds. Insurance contracts are valued at book value, which approximates fair value
and is calculated using the prior-year balance plus or minus investment returns and changes in cash flows.
These methods may produce a fair value calculation that may not be indicative of net realizable value or reflective
of future fair values. While we believe these valuation methods are appropriate and consistent with other market
participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments
could result in a different fair value measurement at the reporting date.
Avery Dennison Corporation | 2024 Annual Report
63

The following table sets forth, by level within the fair value hierarchy (as applicable), non-U.S. plan assets at fair
value:
Fair Value Measurements Using
(In millions)
Total
Quoted
Prices in
Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Other
Unobservable
Inputs
(Level 3)
2024
Cash
$
2.1
$ 2.1
$ —
$
—
Insurance contracts
39.0
—
—
39.0
Pooled funds – real estate investment trusts
5.3
—
—
5.3
Pooled funds – fixed income securities(1)
381.0
Pooled funds – equity securities(1)
174.2
Pooled funds – other investments(1)
57.9
Total non-U.S. plan assets at fair value
$659.5
2023
Cash
$
1.3
$ 1.3
$ —
$
—
Insurance contracts
42.6
—
—
42.6
Pooled funds – real estate investment trusts
6.4
—
—
6.4
Pooled funds – fixed income securities(1)
389.8
Pooled funds – equity securities(1)
169.4
Pooled funds – other investments(1)
53.7
Total non-U.S. plan assets at fair value
$663.2
(1)
Pooled funds that are measured at fair value using the NAV per unit (or its equivalent) practical expedient have not been classified in the fair value
hierarchy. The fair value amounts presented in this table reconcile to total non-U.S. plan assets.
The following table presents a reconciliation of Level 3 non-U.S. plan asset activity during 2024 and 2023:
Level 3 Assets
(In millions)
Insurance
Contracts
Pooled Funds –
Real Estate
Investment
Trusts
Total
Balance at December 31, 2022
$37.1
$ 8.3
$45.4
Net realized and unrealized gain (loss)
1.3
(2.3)
(1.0)
Purchases
3.5
—
3.5
Settlements
(2.8)
—
(2.8)
Acquisition
1.1
—
1.1
Impact of changes in foreign currency exchange rates
2.4
.4
2.8
Balance at December 30, 2023
42.6
6.4
49.0
Net realized and unrealized gain (loss)
1.1
(1.0)
.1
Purchases
3.7
—
3.7
Settlements
(5.8)
—
(5.8)
Impact of changes in foreign currency exchange rates
(2.6)
(.1)
(2.7)
Balance at December 28, 2024
$39.0
$ 5.3
$44.3
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2024 Annual Report | Avery Dennison Corporation

Plan Assumptions
Discount Rate
In consultation with our actuaries, we annually review and determine the discount rates used to value our pension
and other postretirement obligations. The assumed discount rate for each pension plan reflects market rates for high
quality corporate bonds currently available. Our discount rate is determined by evaluating yield curves consisting of large
populations of high quality corporate bonds. The projected pension benefit payment streams are then matched with bond
portfolios to determine a rate that reflects the liability duration unique to our plans.
We use the full yield curve approach to estimate the service and interest cost components of net periodic benefit
cost for our pension and other postretirement benefit plans. Under this approach, we apply multiple discount rates from a
yield curve composed of the rates of return on several hundred high-quality, fixed income corporate bonds available at
the measurement date. We believe that this approach provides a more precise measurement of service and interest cost
by aligning the timing of a plan’s liability cash flows to its corresponding rates on the yield curve.
Long-term Return on Assets
We determine the long-term rate of return assumption for plan assets by reviewing the historical and expected
returns of both the equity and fixed income markets, taking into account our asset allocation, the correlation between
returns in our asset classes, and our mix of active and passive investments. Additionally, we evaluate current market
conditions, including interest rates, and review market data for reasonableness and appropriateness.
Measurement Date
We measure the actuarial value of our benefit obligations and plan assets using the calendar month-end closest to
our fiscal year-end and adjust for any contributions or other significant events between the measurement date and our
fiscal year-end.
Plan Balance Sheet Reconciliations
The following table provides a reconciliation of benefit obligations, plan assets, funded status of the plans and
accumulated other comprehensive loss for our defined benefit plans:
Plan Benefit Obligations
Pension Benefits
2024
2023
(In millions)
U.S.
Non-U.S.
U.S.
Non-U.S.
Change in projected benefit obligations
Projected benefit obligations at beginning of year
$49.3
$679.9
$51.8
$586.9
Service cost
—
13.8
—
10.5
Interest cost
2.2
24.1
2.4
24.7
Participant contributions
—
4.7
—
4.5
Amendments
—
5.1
—
(.1)
Actuarial (gain) loss
(.5)
2.8
1.4
51.3
Acquisition
—
—
—
1.2
Benefits paid
(6.4)
(24.5)
(6.3)
(25.3)
Settlements
—
(6.0)
—
(.6)
Foreign currency translation
—
(35.5)
—
26.8
Projected benefit obligations at end of year
$44.6
$664.4
$49.3
$679.9
Accumulated benefit obligations at end of year
$44.6
$608.0
$49.3
$628.7
Avery Dennison Corporation | 2024 Annual Report
65

Plan Assets
Pension Benefits
2024
2023
(In millions)
U.S.
Non-U.S.
U.S.
Non-U.S.
Change in plan assets
Plan assets at beginning of year
$
—
$663.2
$
—
$585.3
Actual return on plan assets
—
41.6
—
54.6
Acquisition
—
—
—
1.1
Employer contributions
6.4
15.5
6.3
17.2
Participant contributions
—
4.7
—
4.5
Benefits paid
(6.4)
(24.5)
(6.3)
(25.3)
Settlements
—
(6.0)
—
(.6)
Foreign currency translation
—
(35.0)
—
26.4
Plan assets at end of year
$
—
$659.5
$
—
$663.2
Funded Status
Pension Benefits
2024
2023
(In millions)
U.S.
Non-U.S.
U.S.
Non-U.S.
Funded status of the plans
Other assets
$
—
$ 84.7
$
—
$ 67.8
Other accrued liabilities
(6.1)
(3.2)
(6.1)
(.2)
Long-term retirement benefits and other liabilities(1)
(38.5)
(86.4)
(43.2)
(84.3)
Plan assets less than benefit obligations
$(44.6)
$ (4.9)
$(49.3)
$(16.7)
(1)
In accordance with our funding strategy, we have the option to fund certain of our U.S. liabilities with proceeds from our company-owned life
insurance policies.
Pension Benefits
2024
2023
U.S.
Non-U.S.
U.S.
Non-U.S.
Weighted average assumptions used to determine year-end
benefit obligations
Discount rate
5.43 %
3.95 %
4.86 %
3.78 %
Compensation rate increase
—
2.80
—
2.73
For U.S. and non-U.S. plans combined, the projected benefit obligations and fair values of plan assets for pension
plans with projected benefit obligations in excess of plan assets were $290 million and $156 million, respectively, at
year-end 2024 and $210 million and $76 million, respectively, at year-end 2023.
For U.S. and non-U.S. plans combined, the accumulated benefit obligations and fair values of plan assets for
pension plans with accumulated benefit obligations in excess of plan assets were $274 million and $151 million,
respectively, at year-end 2024 and $162 million and $43 million, respectively, at year-end 2023.
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2024 Annual Report | Avery Dennison Corporation

Accumulated Other Comprehensive Loss
The following table shows the pre-tax amounts recognized in “Accumulated other comprehensive loss” in the
Consolidated Balance Sheets:
Pension Benefits
2024
2023
(In millions)
U.S.
Non-U.S.
U.S.
Non-U.S.
Net actuarial loss
$8.9
$69.4
$9.6
$73.2
Prior service (credit) cost
—
2.3
—
(3.4)
Net amount recognized in accumulated other comprehensive loss
$8.9
$71.7
$9.6
$69.8
The following table shows the pre-tax amounts recognized in “Other comprehensive loss (income)”:
Pension Benefits
2024
2023
2022
(In millions)
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
Net actuarial (gain) loss
$(.2)
$(3.4)
$ .9
$32.6
$(5.6)
$ (.8)
Prior service credit
—
5.1
—
(.1)
—
—
Amortization of unrecognized:
Net actuarial (gain) loss
(.5)
(.4)
(.4)
2.1
(.8)
(2.5)
Prior service credit (cost)
—
.5
—
.4
—
.4
Settlements
—
.1
—
.1
(.1)
.1
Net amount recognized in other comprehensive loss
(income)
$(.7)
$ 1.9
$ .5
$35.1
$(6.5)
$(2.8)
Plan Income Statement Reconciliations
The following table shows the components of net periodic benefit cost:
Pension Benefits
2024
2023
2022
(In millions)
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
Service cost
$ —
$ 13.8
$ —
$ 10.5
$ —
$ 16.5
Interest cost
2.2
24.1
2.4
24.7
1.2
10.8
Actuarial (gain) loss
(.2)
—
.5
—
(3.5)
—
Expected return on plan assets
—
(37.4)
—
(33.2)
—
(21.9)
Amortization of actuarial loss
.5
.4
.4
(2.1)
.8
2.5
Amortization of prior service (credit) cost
—
(.5)
—
(.4)
—
(.4)
Recognized loss (gain) on settlements
—
(.1)
—
(.1)
.1
(.1)
Net periodic benefit cost (credit)
$2.5
$
.3
$3.3
$
(.6)
$(1.4)
$
7.4
Service cost and components of net periodic benefit cost other than service cost were included in “Marketing,
general and administrative expense” and “Other non-operating expense (income), net” in the Consolidated Statements of
Income, respectively.
Avery Dennison Corporation | 2024 Annual Report
67

The following table shows the weighted average assumptions used to determine net periodic cost:
Pension Benefits
2024
2023
2022
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
Discount rate
4.86 %
3.78 %
5.06 %
4.36 %
2.19 %
1.57 %
Expected return on assets
—
5.04
—
4.71
—
3.00
Compensation rate increase
—
2.73
—
2.75
—
2.33
Plan Contributions
We make contributions to our defined benefit plans sufficient to meet the minimum funding requirements of
applicable laws and regulations, plus additional amounts, if any, we determine to be appropriate. The following table sets
forth our expected contributions in 2025:
(In millions)
U.S. pension plans
$ 6.2
Non-U.S. pension plans
17.5
Future Benefit Payments
The future benefit payments shown below reflect the expected service periods for eligible participants.
Pension
Benefits
(In millions)
U.S.
Non-U.S.
2025
$ 6.2
$ 23.5
2026
5.7
29.3
2027
5.5
27.3
2028
5.0
26.6
2029
4.7
26.6
2030-2034
17.0
152.5
Postretirement Health Benefits
We provide postretirement health benefits to certain of our retired U.S. employees up to the age of 65 under a
cost-sharing arrangement and provide supplemental Medicare benefits to certain of our U.S. retirees over the age of 65.
Our postretirement health benefit plan was closed to new participants retiring after December 31, 2021. Our policy is to
fund the cost of these postretirement benefits from operating cash flows. While we do not intend to terminate these
postretirement health benefits, we may do so at any time, subject to applicable laws and regulations. At year-end 2024,
our postretirement health benefits obligation and related loss recorded in “Accumulated other comprehensive loss” were
approximately $2 million and $9 million, respectively. At year-end 2023, our postretirement health benefits obligation and
related loss recorded in “Accumulated other comprehensive loss” were approximately $2 million and $10 million,
respectively. Net periodic benefit cost was not material in 2024, 2023 or 2022.
Defined Contribution Plans
We sponsor various defined contribution plans worldwide, the largest of which is the Avery Dennison Corporation
Employee Savings Plan (“Savings Plan”), a 401(k) plan for our U.S. employees.
We recognized expense of $31.9 million, $30.3 million and $27.3 million in 2024, 2023 and 2022, respectively,
related to our employer contributions and employer match of participant contributions to the Savings Plan.
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2024 Annual Report | Avery Dennison Corporation

Other Retirement Plans
We have deferred compensation plans and programs that permit eligible employees to defer a portion of their
compensation. The compensation voluntarily deferred by the participant, together with certain employer contributions,
earns specified and variable rates of return. As of year-end 2024 and 2023, we had accrued $99.0 million and
$88.2 million, respectively, for our obligations under these plans. A portion of the interest on certain of our contributions
may be forfeited by participants if their employment terminates before age 55 other than by reason of death or disability.
Our Directors Deferred Equity Compensation Program allows our non-employee directors to elect to receive their
cash compensation in deferred stock units (“DSUs”) issued under our equity plan. Additionally, two legacy deferred
compensation plans had DSUs that were issued under our then-active equity plans. Dividend equivalents, representing
the value of dividends per share paid on shares of our common stock and calculated with reference to the number of
DSUs held as of a quarterly dividend record date, are credited in the form of additional DSUs on the applicable dividend
payable date. DSUs are converted into shares of our common stock, less fractional shares, and issued to a participating
director upon his or her separation from our Board. Approximately 0.04 million and 0.1 million DSUs were outstanding as
of year-end 2024 and 2023, respectively, with an aggregate value of $8 million and $19 million, respectively.
We hold company-owned life insurance policies, the proceeds from which are payable to us upon the death of
covered participants. The cash surrender values of these policies, net of outstanding loans, which are included in “Other
assets” in the Consolidated Balance Sheets, were $247.4 million and $228.4 million at year-end 2024 and 2023,
respectively.
NOTE 7. COMMITMENTS AND LEASES
Supplemental cost information related to leases is shown below.
(In millions)
2024
2023
2022
Operating lease costs
$75.1
$ 73.6
$ 70.8
Lease costs related to finance leases were not material in 2024, 2023 or 2022.
Supplemental balance sheet information related to leases is shown below.
(In millions)
Balance Sheet Location
2024
2023
Assets
Operating
Other assets
$227.5
$200.2
Finance(1)
Property, plant and equipment, net
32.5
29.6
Total leased assets
$260.0
$229.8
Liabilities
Current:
Operating
Other current liabilities
$ 49.6
$ 45.4
Finance
Short-term borrowings and current portion of long-term debt
and finance leases
4.3
6.3
Non-current:
Operating
Long-term retirement benefits and other liabilities
176.1
152.3
Finance
Long-term debt and finance leases
9.1
7.0
Total lease liabilities
$239.1
$211.0
(1)
Finance lease assets are net of accumulated amortization of $18.7 million and $14.6 million as of December 28, 2024 and December 30, 2023,
respectively.
Avery Dennison Corporation | 2024 Annual Report
69

Supplemental cash flow information related to leases is shown below.
(In millions)
2024
2023
2022
Cash paid for amounts included in measurement of operating lease
liabilities
$61.0
$ 55.8
$60.5
Operating lease assets obtained in exchange for operating lease
liabilities
93.0
92.4
37.2
Cash flows related to finance leases were not material in 2024, 2023 or 2022.
Weighted average remaining lease term and discount rate information related to leases as of December 28, 2024
and December 30, 2023 is shown below.
2024
2023
Weighted average remaining lease term (in years):
Operating
6.7
7.1
Finance
3.6
3.1
Weighted average discount rate (percentage):
Operating
4.6 %
4.1 %
Finance
4.7
4.2
Operating and finance lease liabilities by maturity date from December 28, 2024 are shown below.
(In millions)
Operating
Leases
Finance
Leases
2025
$ 55.6
$ 5.3
2026
47.8
3.6
2027
37.0
2.8
2028
26.3
1.8
2029
21.8
.9
2030 and thereafter
72.5
.5
Total lease payments
261.0
14.9
Less: imputed interest
(35.3)
(1.6)
Present value of lease liabilities
$225.7
$13.3
As of December 28, 2024, we had no significant operating or finance leases that had not yet commenced.
NOTE 8. CONTINGENCIES
Legal Proceedings
We are involved in various lawsuits, claims, inquiries and other regulatory and compliance matters, most of which
are routine to the nature of our business. When it is probable that a loss will be incurred and where a range of the loss
can be reasonably estimated, the best estimate within the range is accrued. When the best estimate within the range
cannot be determined, the low end of the range is accrued. The ultimate resolution of these claims could affect future
results of operations should our exposure be materially different from our estimates or should we incur liabilities that
were not previously accrued. Probable insurance reimbursements are not offset against potential liabilities.
Because of the uncertainties associated with claims resolution and litigation, future expenses to resolve legal
proceedings could be higher than the liabilities we have accrued. If information were to become available that allowed us
to reasonably estimate an amount higher or lower than what we have accrued in the range of potential expenses
determined to be probable, we would adjust our accrued liabilities accordingly. Additional lawsuits, claims, inquiries and
other regulatory and compliance matters could arise in the future. The range of expenses for resolving any future matters
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2024 Annual Report | Avery Dennison Corporation

would be assessed as they arise; until then, a range of potential expenses for their resolution cannot be determined.
Based upon current information, we believe that the impact of the resolution of legal proceedings would not be,
individually or in the aggregate, material to our financial position, results of operations or cash flows.
We were party to a litigation in which ADASA Inc. (“Adasa”), an unrelated third party, alleged that certain of the
RFID products within our Solutions Group reportable segment infringed its patent. The case was filed on October 24,
2017 in the United States District Court in the District of Oregon (Eugene Division) and was captioned ADASA Inc. v.
Avery Dennison Corporation. We recorded a contingent liability in the amount of $26.6 million related to this matter in
the second quarter of 2021 based on a jury verdict issued on May 14, 2021.
We appealed the first instance judgment associated with the jury verdict – which resulted in additional potential
liability for the RFID tags sold during the period from the jury verdict to the issuance of the first instance judgment, a
higher royalty applicable to tags sold after the judgment and a royalty on additional late-disclosed tags, as well as
sanctions, prejudgment interest, costs, and attorneys’ fees, as well as an ongoing royalty on in-scope tags sold after
October 14, 2021 – to the United States Court of Appeals for the Federal Circuit (the “CAFC”). During the fourth quarter
of 2022, the CAFC issued its opinion, reversing the grant of summary judgment of validity as to anticipation and
obviousness, vacating the sanctions ruling, and remanding the case for retrial with respect to validity for anticipation and
obviousness over the prior art. The CAFC affirmed subject-matter eligibility and damages if liability was determined on
retrial. On remand, the trial court was required to reconsider the amount of sanctions consistent with the CAFC’s
instruction to limit sanctions to the late-disclosed tags.
After the U.S. Supreme Court denied our writ of certiorari petition on May 30, 2023, the retrial began on July 10,
2023. On July 18, 2023, the jury in the retrial issued a verdict that Adasa’s patent is valid. We increased our contingent
liability to reflect our then-best estimate of the anticipated judgment to $80.4 million as of July 1, 2023, with an
expectation to continue adjusting our accrual quarterly, as appropriate. As of December 30, 2023, our contingent liability
for this matter was $82.9 million.
On January 25, 2024, the district court issued a revised sanctions order lowering the sanctions against us from
approximately $20 million to $5.2 million based on a rate of $0.0025/late-reported tag, which was consistent with the
amount we had accrued. In February 2024, the district court issued its decision denying our motion for judgment as a
matter of law and our motion for a new trial. On March 7, 2024, the Court issued an amended final judgment, assessing
damages, pre- and post-judgment interest, costs, attorneys’ fees, sanctions, and ongoing royalties.
On April 25, 2024, we entered into a Settlement Agreement, License and Mutual Release with Adasa pursuant to
which, among other things, (i) we agreed to pay $75.0 million to Adasa without any concessions or admissions of liability;
(ii) Adasa agreed to grant us a worldwide, nonexclusive, nontransferable fully-paid up, and ongoing royalty-free perpetual
license, without the right to sublicense, to the patents at issue in the litigation; and (iii) the parties mutually released all
claims against one another. We paid the agreed-upon settlement amount to Adasa on April 26, 2024. No court approval
of the settlement was required; however, as required by the settlement agreement, Adasa filed a Stipulation of
Satisfaction of Judgment with the trial court on April 29, 2024.
Environmental Expenditures
Environmental expenditures are generally expensed. When it is probable that a loss will be incurred and where a
range of the loss can be reasonably estimated, the best estimate within the range is accrued. When the best estimate
within the range cannot be determined, the low end of the range is accrued. The ultimate resolution of these matters
could affect future results of operations should our exposure be materially different from our estimates or should we incur
liabilities that were not previously accrued. Probable insurance reimbursements are not offset against potential liabilities.
We review our estimates of the costs of complying with environmental laws related to remediation and cleanup of
various sites, including sites in which governmental agencies have designated us as a potentially responsible party
(“PRP”). However, environmental expenditures for newly acquired assets and those that extend or improve the economic
useful life of existing assets are capitalized and amortized over the shorter of the estimated useful life of the acquired
asset or the remaining life of the existing asset.
As of December 28, 2024, we have been designated by the U.S. Environmental Protection Agency (“EPA”) and/or
other responsible state agencies as a PRP at ten waste disposal or waste recycling sites that are the subject of separate
investigations or proceedings concerning alleged soil and/or groundwater contamination. No settlement of our liability
Avery Dennison Corporation | 2024 Annual Report
71

related to any of these sites has been agreed upon. We are participating with other PRPs at these sites and anticipate
that our share of remediation costs will be determined pursuant to agreements that we negotiate with the EPA or other
governmental authorities.
These estimates could change as a result of changes in planned remedial actions, remediation technologies, site
conditions, the estimated time to complete remediation, environmental laws and regulations, and other factors. Because
of the uncertainties associated with environmental assessment and remediation activities, our future expenses to
remediate these sites could be higher than the liabilities we have accrued. If information were to become available that
allowed us to reasonably estimate an amount higher or lower than what we have accrued in the range of potential
expenses, we would adjust our environmental liabilities accordingly. In addition, we may be identified as a PRP at
additional sites in the future. The range of expenses for remediation of any future-identified sites would be addressed as
they arise; until then, a range of expenses for their remediation cannot be determined.
The activity related to our environmental liabilities in 2024 and 2023 is shown below:
(In millions)
2024
2023
Balance at beginning of year
$ 24.5
$24.3
Charges, net of reversals
1.9
2.5
Payments
(13.4)
(2.3)
Balance at end of year
$ 13.0
$24.5
Approximately $5 million and $11 million, respectively, of this balance was classified as short-term and included in
“Other current liabilities” in the Consolidated Balance Sheets as of December 28, 2024 and December 30, 2023.
NOTE 9. FAIR VALUE MEASUREMENTS
Recurring Fair Value Measurements
Assets and liabilities carried at fair value, measured on a recurring basis, as of December 28, 2024, were as
follows:
Fair Value Measurements Using
(In millions)
Total
Quoted
Prices in
Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Other
Unobservable
Inputs
(Level 3)
Assets
Investments
$48.0
$24.2
$23.8
$
—
Derivative assets
41.2
.4
40.8
—
Bank drafts
5.2
5.2
—
—
Liabilities
Derivative liabilities
$41.5
$
.4
$41.1
$
—
Contingent consideration liabilities
4.8
—
—
4.8
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2024 Annual Report | Avery Dennison Corporation

Assets and liabilities carried at fair value, measured on a recurring basis, as of December 30, 2023 were as
follows:
Fair Value Measurements Using
(In millions)
Total
Quoted
Prices in
Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Other
Unobservable
Inputs
(Level 3)
Assets
Investments
$37.8
$
19.6
$
18.2
$
—
Derivative assets
8.6
—
8.6
—
Bank drafts
5.3
5.3
—
—
Liabilities
Derivative liabilities
$ 7.6
$
1.6
$
6.0
$
—
Contingent consideration liabilities
10.0
—
—
10.0
Investments included fixed income securities (primarily U.S. government and corporate debt securities) measured at
fair value using quoted prices/bids and a money market fund measured at fair value using NAV. As of December 28, 2024,
investments of $1.5 million, $38.1 million, and $8.4 million were included in “Cash and cash equivalents,” “Other current
assets,” and “Other assets,” respectively, in the Consolidated Balance Sheets. As of December 30, 2023, investments of
$2.7 million and $35.1 million were included in “Cash and cash equivalents” and “Other current assets,” respectively, in the
Consolidated Balance Sheets. Derivatives that are exchange-traded are measured at fair value using quoted market prices and
classified within Level 1 of the valuation hierarchy. Derivatives measured based on foreign currency exchange rate inputs that
are readily available in public markets are classified within Level 2 of the valuation hierarchy. Bank drafts (maturities greater
than three months) are valued at face value due to their short-term nature and were included in “Other current assets” in the
Consolidated Balance Sheets.
Contingent consideration liabilities relate to estimated earn-out payments associated with certain acquisitions
completed in 2023, 2022 and 2021, which are subject to the acquired companies achieving certain post-acquisition
performance targets. These liabilities were recorded based on the expected payments and have been classified as Level 3.
Activity related to contingent consideration was immaterial in 2024 and 2023.
In addition to the investments described above, we hold venture investments that had a total carrying value of
approximately $45 million and $71 million as of December 28, 2024 and December 30, 2023, respectively, which was
included in “Other assets” in the Consolidated Balance Sheets. Starting in the second quarter of 2024, we began revaluing
certain venture investments based on Level 1 inputs; the fair value of these investments was $8.4 million as of December 28,
2024. Related to these investments, we recognized $19.2 million in net losses in 2024, no net gains or losses in 2023 and net
gains of $13.5 million in 2022 in “Other expense (income), net” in the Consolidated Statements of Income.
NOTE 10. NET INCOME PER COMMON SHARE
Net income per common share was computed as follows:
(In millions, except per share amounts)
2024
2023
2022
(A) Net income
$704.9
$503.0
$ 757.1
(B) Weighted average number of common shares outstanding
80.4
80.7
81.6
Dilutive shares (additional common shares issuable under stock-
based awards)
.3
.4
.6
(C) Weighted average number of common shares outstanding,
assuming dilution
80.7
81.1
82.2
Net income per common share (A) ÷ (B)
$ 8.77
$ 6.23
$
9.28
Net income per common share, assuming dilution (A) ÷ (C)
$ 8.73
$ 6.20
$
9.21
Certain stock-based compensation awards were excluded from the computation of net income per common share,
assuming dilution, because they would not have had a dilutive effect. Stock-based compensation awards excluded from
the computation totaled 0.1 million shares in 2024 and 2023 and were not significant in 2022.
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NOTE 11. SUPPLEMENTAL EQUITY AND COMPREHENSIVE INCOME INFORMATION
Common Stock and Share Repurchase Program
Our Amended and Restated Certificate of Incorporation authorizes five million shares of $1 par value preferred
stock (of which no shares are outstanding), with respect to which our Board may fix the series and terms of issuance, and
400 million shares of $1 par value voting common stock.
From time to time, our Board authorizes the repurchase of shares of our outstanding common stock. Repurchased
shares may be reissued under our long-term incentive plan or used for other corporate purposes. In 2024, we
repurchased approximately 1.2 million shares of our common stock at an aggregate cost of $247.5 million. In 2023, we
repurchased approximately 0.8 million shares of our common stock at an aggregate cost of $137.5 million.
In April 2022, our Board authorized the repurchase of shares of our common stock with a fair market value of up to
$750 million, excluding any fees, commissions or other expenses related to such purchases and in addition to any amount
outstanding under our previous Board authorization. Shares of our common stock in the aggregate amount of
$346.9 million remained authorized for repurchase under this Board authorization as of December 28, 2024. Board
authorizations remain in effect until shares in the amount authorized thereunder have been repurchased.
Treasury Shares Reissuance
We fund a portion of our employee-related costs using shares of our common stock held in treasury. We reduce
capital in excess of par value based on the grant date fair value of vesting awards and record net gains or losses
associated with using treasury shares to retained earnings.
Accumulated Other Comprehensive Loss
The changes in “Accumulated other comprehensive loss” (net of tax) for 2024 and 2023 were as follows:
(In millions)
Foreign
Currency
Translation(1)
Pension and
Other
Postretirement
Benefits
Cash Flow
Hedges
Fair Value
Hedges
Total
Balance as of December 31, 2022
$(314.0)
$(51.3)
$ 1.3
$ —
$(364.0)
Other comprehensive income (loss)
before reclassifications, net of tax
(14.6)
(25.2)
(7.0)
—
(46.8)
Reclassifications to net income, net of tax
—
(1.0)
3.7
—
2.7
Net current-period other comprehensive
income (loss), net of tax
(14.6)
(26.2)
(3.3)
—
(44.1)
Balance as of December 30, 2023
$(328.6)
$(77.5)
$(2.0)
$ —
$(408.1)
Other comprehensive income (loss)
before reclassifications, net of tax
(46.9)
(1.3)
(5.4)
2.0
(51.6)
Reclassifications to net income, net of tax
—
.8
2.8
—
3.6
Net current-period other comprehensive
income (loss), net of tax
(46.9)
(.5)
(2.6)
2.0
(48.0)
Balance as of December 28, 2024
$(375.5)
$(78.0)
$(4.6)
$2.0
$(456.1)
(1)
The 2024 changes in foreign currency translation included a pretax gain related to the foreign currency forward contracts and zero-cost collars
accounted for as net investment hedges. Refer to Note 5, “Financial Instruments,” to the Consolidated Financial Statements for more information.
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The following table sets forth the income tax expense (benefit) allocated to each component of other
comprehensive income (loss):
(In millions)
2024
2023
2022
Foreign currency translation:
Translation gain (loss)
$
.1
$ 1.2
$(7.0)
Pension and other postretirement benefits:
Net gain (loss) recognized from actuarial gain/loss and prior
service cost/credit
(.6)
(8.2)
.5
Reclassifications to net income
.4
(.3)
1.1
Cash flow hedges:
Gain (loss) recognized on cash flow hedges
(1.7)
(2.2)
1.6
Reclassifications to net income
.9
1.2
.4
Fair value hedges:
Changes in excluded components of fair value hedges
.6
—
—
Income tax expense (benefit) allocated to components of other
comprehensive income (loss)
$ (.3)
$(8.3)
$(3.4)
NOTE 12. LONG-TERM INCENTIVE COMPENSATION
Stock-Based Awards
Stock-Based Compensation
We grant our annual stock-based compensation awards to eligible employees in March and non-employee
directors in May. Certain awards granted to retirement-eligible employees one or more years before their retirement date
vest upon retirement; these awards are accounted for as fully vested one year from the date of grant.
Our 2017 Incentive Award Plan, a long-term incentive plan for employees and non-employee directors, allows us
to grant stock-based compensation awards – including stock options, RSUs, PUs, MSUs and DSUs – or a combination of
these and other awards. Under this plan, 5.4 million shares were made available for issuance, with each full value award
counted as 1.5 shares for purposes of the number of shares authorized for issuance. Full value awards include RSUs, PUs
and MSUs.
Stock-based compensation expense and the related recognized tax benefit were as follows:
(In millions)
2024
2023
2022
Stock-based compensation expense
$ 28.7
$ 22.3
$ 47.4
Tax benefit
2.6
2.4
6.7
This expense was included in “Marketing, general and administrative expense” in the Consolidated Statements of
Income.
As of December 28, 2024, we had approximately $38 million of unrecognized compensation expense related to
unvested stock-based awards, which is expected to be recognized over the remaining weighted average requisite service
period of approximately two years.
Stock Options
Stock options may be granted to employees and non-employee directors at no less than 100% of the fair market
value of our common stock on the date of the grant and generally vest over a four-year period. Options expire ten years
from the date of grant.
The fair value of stock options is estimated as of the date of grant using the Black-Scholes option-pricing model.
This model requires input assumptions for our expected dividend yield, expected stock price volatility, risk-free interest
rate and the expected option term.
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The weighted average grant date fair value per share for stock options granted in 2023 was $47.65. No stock
options were granted in fiscal years 2024 or 2022.
The following assumptions are used in estimating the fair value of granted stock options:
Risk-free interest rate is based on the 52-week average of the Treasury-Bond rate that has a term corresponding
to the expected option term. For 2023, it was 3.84%.
Expected stock price volatility represents an average of the implied and historical volatility. For 2023, it was 23.90%.
Expected dividend yield is based on the current annual dividend divided by the 12-month average of our monthly
stock price prior to grant. For 2023, it was 1.84%.
Expected option term is determined based on historical experience under our long-term incentive plans. For 2023,
it was 6.31 years.
The following table summarizes information related to stock options:
Number of
options
(in thousands)
Weighted
average
exercise price
Weighted
average
remaining
contractual life
(in years)
Aggregate
intrinsic value
(in millions)
Outstanding at December 30, 2023
204.1
$109.92
4.36
$18.7
Exercised
(141.1)
73.96
Outstanding at December 28, 2024
63.0
$190.54
8.68
$
—
Options vested and expected to vest at
December 28, 2024
54.8
190.54
8.68
—
Options exercisable at December 28, 2024
—
$
—
$
—
The total intrinsic value of stock options exercised was $19.5 million in 2024. We received approximately $10 million
in 2024 from the exercise of stock options, and the tax benefit associated with these exercised options was $4.8 million. There
were no stock option exercises in 2023 and the stock option exercises in 2022 were immaterial. The intrinsic value of a stock
option is based on the amount by which the market value of our stock exceeds the exercise price of the option.
Performance Units (“PUs”)
PUs are performance-based awards granted to eligible employees under our equity plan. PUs are payable in shares of
our common stock at the end of a three- or four-year cliff vesting period provided that the designated performance objectives
are achieved at the end of the period. Over the performance period, the estimated number of shares of our common stock
issuable upon vesting is adjusted upward or downward based on the probability of achieving the performance objectives
established for the award. The number of shares issued generally ranges from 0% to 200% of the target shares at the time of
grant; however the shares issued for certain special PU awards can range up to 300% of the target shares at time of grant.
The weighted average grant date fair value for PUs was $224.82, $180.12 and $163.97 in 2024, 2023 and 2022,
respectively.
The following table summarizes information related to awarded PUs:
Number of
PUs
(in thousands)
Weighted
average
grant-date
fair value
Unvested at December 30, 2023
300.7
$174.54
Granted at target
68.3
224.82
Adjustment for above-target performance(1)
37.7
197.75
Vested
(104.2)
197.75
Forfeited/cancelled
(10.4)
184.82
Unvested at December 28, 2024
292.1
$181.94
(1)
Reflects adjustments for above-target performance for the 2021-2023 PUs.
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The fair value of vested PUs was $20.6 million in 2024, $22.7 million in 2023 and $20.2 million in 2022.
Market-Leveraged Stock Units (“MSUs”)
MSUs are performance-based awards granted to eligible employees under our equity plan. MSUs are payable in shares
of our common stock over a four-year period provided that the designated performance objective is achieved as of the end of
each vesting period. MSUs accrue dividend equivalents during the vesting period, which are earned and paid only at vesting
provided that, at a minimum, threshold-level performance is achieved. The number of shares earned is based upon our
absolute total shareholder return at each vesting date and can range from 0% to 200% of the target amount of MSUs subject
to vesting. Each of the four vesting periods represents one tranche of MSUs and the fair value of each of these four tranches
was determined using the Monte-Carlo simulation model, which utilizes multiple input variables, including expected stock
price volatility and other assumptions, to estimate the probability of achieving the performance objective established for the
award. The weighted average grant date fair value for MSUs was $259.75, $192.53 and $141.80 in 2024, 2023 and 2022,
respectively.
The following table summarizes information related to awarded MSUs:
Number of
MSUs
(in thousands)
Weighted
average
grant-date
fair value
Unvested at December 30, 2023
195.5
$167.16
Granted at target
55.2
259.75
Adjustments for above-target performance(1)
20.6
129.76
Vested
(99.2)
147.25
Forfeited/cancelled
(8.4)
198.29
Unvested at December 28, 2024
163.7
$202.83
(1)
Reflects adjustments for above-target performance for each of the tranches of MSUs vesting in 2024.
The fair value of vested MSUs was $14.6 million in 2024, $16.1 million in 2023 and $19.9 million in 2022.
Restricted Stock Units (“RSUs”)
RSUs are service-based awards granted to eligible employees and non-employee directors under our equity plan.
RSUs granted to employees generally vest over a period between one and four years. RSUs granted to non-employee
directors generally vest in one year. The vesting of RSUs is subject to continued service through the applicable vesting date. If
that condition is not met, unvested RSUs are generally forfeited. The weighted average grant date fair value for RSUs was
$210.74, $175.88 and $168.34 in 2024, 2023 and 2022, respectively.
The following table summarizes information related to awarded RSUs:
Number of
RSUs
(in thousands)
Weighted
average
grant-date
fair value
Unvested at December 30, 2023
66.5
$171.68
Granted
53.7
210.74
Vested
(18.4)
175.42
Forfeited/cancelled
(6.9)
196.80
Unvested at December 28, 2024
94.9
$191.22
The fair value of vested RSUs was $3.2 million, $2.7 million and $2.8 million in 2024, 2023 and 2022, respectively.
Cash-Based Awards
Long-Term Incentive Units (“LTI Units”)
LTI Units are cash-based awards granted to employees under our long-term incentive unit plan. LTI Units are
service-based awards that generally vest ratably over a four-year period. The settlement value equals the number of
Avery Dennison Corporation | 2024 Annual Report
77

vested LTI Units multiplied by the average of the high and low market prices of our common stock on the vesting date.
The compensation expense related to these awards is amortized on a straight-line basis and the fair value is remeasured
using the estimated percentage of units expected to be earned multiplied by the average of the high and low market
prices of our common stock at each quarter-end.
We also grant cash-based awards in the form of performance and market-leveraged LTI Units to eligible
employees. Performance LTI Units are payable in cash at the end of a three-year cliff vesting period provided that certain
performance objectives are achieved at the end of the performance period. Market-leveraged LTI Units are payable in
cash and vest ratably over a period of four years. The number of performance and market-leveraged LTI Units earned at
vesting is adjusted upward or downward based upon the probability of achieving the performance objectives established
for the respective award and the actual number of units issued can range from 0% to 200% of the designated target units
subject to vesting. Performance and market-leveraged LTI Units are remeasured using the estimated percentage of units
expected to be earned multiplied by the average of the high and low market prices of our common stock at each
quarter-end over their respective performance periods. The compensation expense related to performance LTI Units is
amortized on a straight-line basis over their respective performance periods. The compensation expense related to
market-leveraged LTI Units is amortized on a graded-vesting basis over their respective performance periods.
The compensation expense related to LTI Units was $14.9 million in 2024, $16.3 million in 2023 and $11.5 million
in 2022. This expense was included in “Marketing, general and administrative expense” in the Consolidated Statements
of Income. The total recognized tax benefit related to LTI Units was $3.6 million in 2024, $3.9 million in 2023 and
$2.7 million in 2022.
NOTE 13. COST REDUCTION ACTIONS
Restructuring Charges
We have plans that provide eligible employees with severance benefits in the event of an involuntary termination.
We calculate severance using the benefit formulas under the applicable plans. We record restructuring charges from
qualifying cost reduction actions for severance and other exit costs (including asset impairment charges and lease and
other contract cancellation costs) when they are probable and estimable.
2025 Actions
In the fourth quarter 2024, we recorded $13.1 million in restructuring charges related to our 2025 actions. These
charges consisted of severance and related costs for the reduction of approximately 90 positions, as well as asset
impairment charges, at numerous locations across our company, reflecting actions in our Solutions Group reportable
segment.
2023 Actions
During 2024, we recorded $28.8 million in restructuring charges, net of reversals, related to our 2023 actions.
These charges consisted of severance and related costs for the reduction of approximately 1,280 positions, as well as
asset impairment charges, at numerous locations across our company. During 2023, we recorded $49.0 million in
restructuring charges, net of reversals, related to these actions. These charges consisted of severance and related costs
for the reduction of approximately 1,450 positions, as well as asset impairment charges, at numerous locations across our
company.
In the third quarter of 2023, we approved a restructuring plan (the “2023 Plan”) to further optimize the European
footprint of our Materials Group reportable segment by reducing operations in a manufacturing facility in Belgium. The
cumulative charges associated with the 2023 Plan consisted of severance and related costs for the reduction of
approximately 210 positions, as well as asset impairment charges. We recorded $30.4 million in 2023 in restructuring
charges related to the 2023 Plan. The activities related to the 2023 Plan are expected to be substantially completed by
mid-2025.
Accruals for severance and related costs and lease cancellation costs were included in “Other current liabilities”
and “Long-term retirement benefits and other liabilities” in the Consolidated Balance Sheets. Asset impairment charges
were based on the estimated market value of the assets, less selling costs, if applicable. Restructuring charges were
included in “Other expense (income), net” in the Consolidated Statements of Income.
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2024 Annual Report | Avery Dennison Corporation

During 2024, restructuring charges and payments were as follows:
(In millions)
Accrual at
December 30,
2023
Charges,
Net of
Reversals
Cash
Payments
Non-cash
Impairment
Foreign
Currency
Translation
Accrual at
December 28,
2024
2025 Actions
Severance and related costs
$
—
$10.0
$
—
$
—
$
—
$ 10.0
Asset impairment charges
—
3.1
—
(3.1)
—
—
2023 Actions
Severance and related costs
27.7
25.4
(43.3)
—
(.6)
9.2
Asset impairment charges
—
3.0
—
(3.0)
—
—
Lease cancellation costs
—
.4
(.6)
—
—
(.2)
Total
$27.7
$41.9
$(43.9)
$
(6.1)
$
(.6)
$ 19.0
During 2023, restructuring charges and payments were as follows:
(In millions)
Accrual at
December 31,
2022
Charges,
Net of
Reversals
Cash
Payments
Non-cash
Impairment
Foreign
Currency
Translation
Accrual at
December 30,
2023
2023 Actions
Severance and related costs
$
—
$72.1
$(45.1)
$
—
$
.7
$ 27.7
Asset impairment charges
—
8.3
—
(8.3)
—
—
2019/2020 Actions
Severance and related costs
5.1
(1.0)
(4.1)
—
—
—
Total
$ 5.1
$79.4
$(49.2)
$
(8.3)
$
.7
$ 27.7
The table below shows the total amount of restructuring charges incurred by reportable segment and Corporate.
(In millions)
2024
2023
2022
Restructuring charges by reportable segment and Corporate
Materials Group
$
5.7
$ 52.4
$
(1.0)
Solutions Group
35.8
23.2
7.9
Corporate
.4
3.8
.8
Total
$ 41.9
$ 79.4
$
7.7
NOTE 14. TAXES BASED ON INCOME
Taxes based on income were as follows:
(In millions)
2024
2023
2022
Current:
U.S. federal tax
$ 36.0
$ 42.5
$ 29.4
State taxes
10.6
9.0
8.8
Foreign taxes
214.9
160.8
177.7
261.5
212.3
215.9
Deferred:
U.S. federal tax
(8.7)
(29.0)
5.8
State taxes
(3.3)
(3.5)
.9
Foreign taxes
(.9)
11.9
19.6
(12.9)
(20.6)
26.3
Provision for income taxes
$248.6
$191.7
$242.2
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The principal items accounting for the difference between taxes computed at the U.S. federal statutory rate and
taxes recorded were as follows:
(In millions)
2024
2023
2022
Tax provision computed at U.S. federal statutory rate(1)
$200.2
$145.9
$209.9
Increase (decrease) in taxes resulting from:
State taxes, net of federal tax benefit
2.7
2.6
11.8
Foreign earnings taxed at different rates(1)
49.5
50.4
51.7
GILTI high-tax exclusion election, net(2)
(6.2)
(10.0)
(11.9)
Valuation allowance
15.9
2.6
(5.0)
U.S. federal research and development tax credits
(7.7)
(8.3)
(6.5)
Tax contingencies and audit settlements
1.9
11.9
(4.3)
Other items, net
(7.7)
(3.4)
(3.5)
Provision for income taxes
$248.6
$191.7
$242.2
(1)
All years included certain U.S. international tax provisions and foreign earnings taxed in the U.S., net of credits.
(2)
In 2024, we recognized $6.2 million from our current year GILTI exclusion election. In 2023, we recognized $4.4 million from our 2023 GILTI exclusion
election and $5.6 million related to the election made on our 2022 U.S. federal tax return. In 2022, we recognized $11.9 million of benefit related to a
GILTI exclusion election made on our 2021 U.S. federal tax return.
Income before taxes from our U.S. and foreign operations was as follows:
(In millions)
2024
2023
2022
U.S.
$211.4
$187.2
$232.4
Foreign
742.1
507.5
766.9
Income before taxes
$953.5
$694.7
$999.3
Our effective tax rate was 26.1%, 27.6% and 24.2% for fiscal years 2024, 2023 and 2022, respectively.
Our 2024 provision for income taxes included (i) $15.9 million of net tax charge related to the tax on global
intangible low-taxed income (“GILTI”) of our foreign subsidiaries and the recognition of foreign withholding taxes on
current year earnings, partially offset by the benefit from foreign-derived intangible income (“FDII”); (ii) $15.9 million of
tax charge from valuation allowances due to the uncertainty of the realization of certain deferred tax assets; and
(iii) excess tax benefits associated with stock-based payments, and return-to-provision benefits related to our 2023 U.S.
federal tax return, partially offset by net tax charge primarily from the recognition of uncertain tax positions and tax audit
settlements in certain foreign jurisdictions.
Our 2023 provision for income taxes included (i) $16.4 million of net tax charge related to the tax on GILTI of our
foreign subsidiaries and the recognition of foreign withholding taxes on current year earnings, partially offset by the
benefit from FDII; (ii) $14.7 million of return-to-provision benefit primarily related to our GILTI exclusion election and
benefits from additional foreign tax credits recognized under temporary relief granted by the Internal Revenue Service
(“IRS”) in July 2023, related to our 2022 U.S. federal tax return, (iii) $10.5 million of tax charge related to non-deductible
expenses resulting from the impact of the Argentine peso remeasurement loss; and (iv) $9.5 million of net tax charge
primarily from the recognition of uncertain tax positions in certain foreign jurisdictions, partially offset by decreases in
certain tax reserves as a result of closing tax years.
Our 2022 provision for income taxes included (i) $18.8 million of net tax charge related to the tax on GILTI of our
foreign subsidiaries and the recognition of foreign withholding taxes on current year earnings, partially offset by the
benefit from FDII; (ii) $17.3 million of return-to-provision benefit, including $11.9 million related to a GILTI exclusion
election and a lower net tax charge from other international inclusion items related to our 2021 U.S. federal tax return;
and (iii) net tax benefit primarily from decreases in certain tax reserves, including interest and penalties, as a result of
closing tax years and the settlement of certain foreign tax audits.
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Deferred Taxes
Deferred taxes reflect the temporary differences between the amounts at which assets and liabilities are recorded
for financial reporting purposes and the amounts utilized for tax purposes. The primary components of the temporary
differences that gave rise to our deferred tax assets and liabilities were as follows:
(In millions)
2024
2023
Accrued expenses not currently deductible
$
29.8
$
44.5
Net operating loss carryforwards
137.9
138.9
Tax credit carryforwards
14.8
9.0
Capitalized research expenses
81.7
59.9
Stock-based compensation
8.8
10.9
Pension and other postretirement benefits
31.1
34.2
Inventory reserve
19.2
16.4
Lease liabilities
44.7
43.3
Other assets
31.6
27.9
Valuation allowance
(72.7)
(62.0)
Total deferred tax assets(1)
326.9
323.0
Depreciation and amortization
(306.0)
(317.2)
Repatriation accrual
(24.2)
(24.5)
Foreign operating loss recapture
(3.1)
(3.4)
Lease assets
(44.3)
(43.4)
Total deferred tax liabilities(1)
(377.6)
(388.5)
Total net deferred tax assets (liabilities)
$ (50.7)
$ (65.5)
(1)
Reflect gross amounts before jurisdictional netting of deferred tax assets and liabilities.
We assess available positive and negative evidence to estimate if sufficient future taxable income is expected to be
generated to use existing deferred tax assets. On the basis of our assessment, we record valuation allowances only with
respect to the portion of the deferred tax asset that is not more-likely-than-not to be realized. Our assessment of the future
realizability of our deferred tax assets relies heavily on our forecasted earnings in certain jurisdictions determined by the
manner in which we operate our business and the relevant carryforward periods. Any changes to our operations may affect
our assessment of deferred tax assets considered realizable if the positive evidence no longer outweighs the negative
evidence.
Net operating loss carryforwards of foreign subsidiaries at December 28, 2024 and December 30, 2023 were
$466 million and $481 million, respectively. Tax credit carryforwards of both domestic and foreign subsidiaries at
December 28, 2024 and December 30, 2023 totaled $15 million and $9 million, respectively. If unused, foreign net
operating losses and tax credit carryforwards will expire as follows:
(In millions)
Net Operating
Losses(1)
Tax Credits
Year of Expiry
2025
$
2.6
$
.2
2026
2.3
.2
2027
3.1
.4
2028
6.6
.8
2029
28.5
.4
2030-2044
23.6
11.7
Indefinite life/no expiry
399.4
1.1
Total
$466.1
$14.8
(1)
Net operating losses are presented before tax effects and valuation allowance.
Avery Dennison Corporation | 2024 Annual Report
81

Certain indefinite-lived foreign net operating losses may require decades to be fully utilized under our current
business model.
At December 28, 2024, we had net operating loss carryforwards in certain states of $575 million before tax
effects. Based on our estimates of future state taxable income, it is more-likely-than-not that the majority of these
carryforwards will not be realized before they expire. Accordingly, a valuation allowance has been recorded on
$548 million of these carryforwards.
As of December 28, 2024, our provision for income taxes did not materially benefit from applicable tax holidays in
foreign jurisdictions.
Unrecognized Tax Benefits
As of December 28, 2024, our unrecognized tax benefits totaled $81 million, $74 million of which, if recognized,
would reduce our annual effective income tax rate. As of December 30, 2023, our unrecognized tax benefits totaled
$88 million, $75 million of which, if recognized, would reduce our annual effective income tax rate.
Where applicable, we accrue potential interest and penalties related to unrecognized tax benefits in income tax
expense. The interest and penalties we recognized during fiscal years 2024, 2023 and 2022 were not material,
individually or in aggregate, to the Consolidated Statements of Income. We have $17 million and $16 million of accrued
interest and penalties, net of tax benefit, in the Consolidated Balance Sheets at December 28, 2024 and December 30,
2023, respectively.
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is set forth below.
(In millions)
2024
2023
Balance at beginning of year
$88.0
$69.5
Additions for tax positions of current year
11.4
15.4
Additions (reductions) for tax positions of prior years, net
(7.2)
8.0
Settlements with tax authorities
(4.6)
(1.8)
Expirations of statutes of limitations
(3.7)
(3.9)
Changes due to translation of foreign currencies
(2.8)
.8
Balance at end of year
$81.1
$88.0
It is reasonably possible that, during the next 12 months, we may realize a decrease in our uncertain tax positions,
including interest and penalties, of approximately $6 million, primarily as a result of closing tax years.
The amount of income taxes we pay is subject to ongoing audits by taxing jurisdictions around the world. Our
estimate of the potential outcome of any uncertain tax issue is subject to our assessment of the relevant risks, facts, and
circumstances existing at the time. We believe we have adequately provided for reasonably foreseeable outcomes related
to these matters. However, our future results may include favorable or unfavorable adjustments to our estimated tax
liabilities in the period the assessments are made or resolved, which may impact our effective tax rate. The final
determination of tax audits and any related legal proceedings could materially differ from amounts reflected in our tax
provision for income taxes and the related liabilities. To date, we and our U.S. subsidiaries have completed the IRS’
Compliance Assurance Process through 2021. With limited exceptions, we are no longer subject to income tax
examinations by tax authorities for years prior to 2010.
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2024 Annual Report | Avery Dennison Corporation

NOTE 15. SEGMENT AND DISAGGREGATED REVENUE INFORMATION
Segment Reporting
We have the following reportable segments:
•
Materials Group – manufactures and sells pressure-sensitive label materials, films for graphic and reflective
products, performance tapes and other adhesive products for industrial, medical and other applications, as
well as fastener solutions.
•
Solutions Group – designs, manufactures and sells a wide variety of branding and information solutions,
including brand and price tickets, tags and labels (including RFID inlays), and related services, supplies and
equipment.
Our President and Chief Executive Officer is the chief operating decision maker (“CODM”) and is responsible for the
allocation of resources and evaluation of performance of our reportable segments. The CODM’s oversight includes
establishing performance targets to advance our long-term strategy and increase stockholder value, allocating capital to
our reportable segments to achieve those targets, developing compensation programs to incentivize segment leaders to
achieve those targets, and analyzing key performance metrics to track progress against those targets. The CODM reviews
the performance of each segment by comparing each reportable segment’s current period results with its annual operating
plan targets, its most recent quarterly forecast, and the prior year to assess how segment results impacted our company’s
overall results.
Disaggregated Revenue Information
Disaggregated revenue information is shown below in the manner that best reflects how the nature, amount, timing
and uncertainty of our revenue and cash flows are affected by economic factors. Revenue from our Materials Group
reportable segment is attributed to geographic areas based on the location from which products are shipped. Revenue
from our Solutions Group reportable segment is shown by product group.
(In millions)
2024
2023
2022
Net sales to unaffiliated customers
Materials Group:
U.S.
$1,715.6
$1,687.8
$1,892.1
Europe, the Middle East and North Africa
2,091.0
2,007.1
2,396.2
Asia
1,388.0
1,315.2
1,390.3
Latin America
489.7
474.2
470.1
Other
328.7
327.0
346.4
Total Materials Group
6,013.0
5,811.3
6,495.1
Solutions Group:
Apparel and other
1,875.5
1,661.4
1,851.2
Identification Solutions and Vestcom
867.2
891.6
693.0
Total Solutions Group
2,742.7
2,553.0
2,544.2
Net sales to unaffiliated customers
$8,755.7
$8,364.3
$9,039.3
Revenue from our Materials Group reportable segment by product group is shown below.
(In millions)
2024
2023
2022
Net sales to unaffiliated customers
Materials Group:
Labels, graphics and reflectives
$5,266.0
$5,076.8
$5,725.7
Tapes and adhesives
676.0
665.3
696.3
Other
71.0
69.2
73.1
Total Materials Group
$6,013.0
$5,811.3
$6,495.1
Avery Dennison Corporation | 2024 Annual Report
83

Our total company revenue by geographic area is shown below. Revenue is attributed to geographic areas based
on the location from which products are shipped.
(In millions)
2024
2023
2022
Net sales to unaffiliated customers
U.S.
$2,613.4
$2,578.3
$2,565.9
Europe, the Middle East and North Africa
2,418.6
2,306.7
2,683.6
Asia
2,763.1
2,545.2
2,817.2
Latin America
599.8
582.3
605.7
Other
360.8
351.8
366.9
Net sales to unaffiliated customers
$8,755.7
$8,364.3
$9,039.3
Net sales to unaffiliated customers in Asia included sales in China (including Hong Kong) of $1.40 billion in 2024,
$1.30 billion in 2023 and $1.50 billion in 2022.
No single customer represented 10% or more of our net sales in year-end 2024, 2023 or 2022. Our ten largest
customers by net sales in the aggregate represented approximately 16% of our net sales during 2024, 2023 and 2022.
Segment Information
During the fourth quarter of 2024, we modified our segment performance measure to exclude other expense
(income), net. These changes align with how our CODM evaluates segment performance and allocates resources. Prior
periods have been conformed to the current period presentation. Segment adjusted operating income is defined as
income before taxes adjusted for other expense (income), net; interest expense, other non-operating expense (income),
net; and other items. Segment results and reconciliation to income before taxes are presented below.
(In millions)
2024
2023
2022
Materials Group
Net sales to unaffiliated customers
$6,013.0
$5,811.3
$6,495.1
Segment expense(1)
5,088.3
5,022.1
5,649.2
Segment adjusted operating income
$
924.7
$
789.2
$
845.9
Solutions Group
Net sales to unaffiliated customers
$2,742.7
$2,553.0
$2,544.2
Segment expense(1)
2,453.4
2,301.0
2,234.1
Segment adjusted operating income
$
289.3
$
252.0
$
310.1
(1)
Segment expense included cost of sales and marketing, general and administrative expense and excluded other expense (income), net, and other
items.
(In millions)
2024
2023
2022
Segment adjusted operating income
Materials Group
$
924.7
$
789.2
$
845.9
Solutions Group
289.3
252.0
310.1
Total
1,214.0
1,041.2
1,156.0
Corporate expense
(91.9)
(77.4)
(82.6)
Other expense (income), net and other items
(78.3)
(180.9)
.6
Interest expense
(117.0)
(119.0)
(84.1)
Other non-operating expense (income), net
26.7
30.8
9.4
Income before taxes
$
953.5
$
694.7
$
999.3
84
2024 Annual Report | Avery Dennison Corporation

Additional Segment Information
Additional financial information by reportable segment is shown below.
Intersegment sales are recorded at or near market prices and are eliminated in determining consolidated net sales.
We do not disclose total assets by reportable segment since we neither generate nor review that information internally.
As our reporting structure is neither organized nor reviewed internally by country, results by individual country are not
provided.
(In millions)
2024
2023
2022
Intersegment sales
Materials Group
$162.8
$157.1
$137.1
Solutions Group
52.3
35.5
37.4
Intersegment sales
$215.1
$192.6
$174.5
Capital expenditures(1)(2)
Materials Group
$ 96.3
$117.8
$153.5
Solutions Group
120.8
148.7
144.0
Capital expenditures
$217.1
$266.5
$297.5
Depreciation and amortization expense(1)
Materials Group
$130.9
$127.8
$135.8
Solutions Group
181.3
170.6
154.9
Depreciation and amortization expense
$312.2
$298.4
$290.7
(1)
Corporate capital expenditures and depreciation and amortization expense are allocated to the reportable segments based on their percentage of
consolidated net sales.
(2)
Capital expenditures for property, plant and equipment included accruals.
Entity-wide Information
Other expense (income), net by type were as follows:
(In millions)
2024
2023
2022
Other expense (income), net by type
Restructuring charges, net of reversals:
Severance and related costs, net of reversals
$35.4
$ 70.8
$
7.6
Asset impairment and lease cancellation charges
6.5
8.6
.1
Other items:
Losses from Argentine peso remeasurement and Blue Chip Swap transactions
16.4
29.9
—
(Gain) loss on venture investments
19.2
1.5
(13.5)
Outcomes of legal matters and settlements, net(1)
(6.2)
64.3
6.3
Transaction and related costs
.3
5.3
.3
(Gain) loss on sales of assets
—
.5
(1.4)
Other expense (income), net
$71.6
$180.9
$
(.6)
(1)
Amount for 2023 included an additional contingent liability related to the Adasa litigation in the amount of $56.3 million. Refer to Note 8,
“Contingencies” for more information.
Avery Dennison Corporation | 2024 Annual Report
85

Long-lived assets (including property, plant and equipment, net, and operating lease assets) in our U.S. and
non-U.S. operations were as follows:
(In millions)
2024
2023
Long-lived assets
U.S.
$
642.7
$
662.8
Non-U.S.
1,171.5
1,163.2
Long-lived assets
$ 1,814.2
$ 1,826.0
Long-lived assets located in China (including Hong Kong) were approximately $288 million in 2024 and
$305 million in 2023.
NOTE 16. SUPPLEMENTAL FINANCIAL INFORMATION
Inventories
Inventories at year-end were as follows:
(In millions)
2024
2023
Raw materials
$
435.0
$
415.4
Work-in-progress
224.9
238.2
Finished goods
318.2
267.1
Inventories
$
978.1
$
920.7
Property, Plant and Equipment, Net
Major classes of property, plant and equipment, stated at cost, at year-end were as follows:
(In millions)
2024
2023
Land
$
35.1
$
35.9
Buildings and improvements
852.3
817.9
Machinery and equipment
2,903.4
2,799.5
Construction-in-progress
202.7
317.1
Property, plant and equipment
3,993.5
3,970.4
Accumulated depreciation
(2,406.8)
(2,344.6)
Property, plant and equipment, net
$ 1,586.7
$ 1,625.8
Software
Capitalized software costs at year-end were as follows:
(In millions)
2024
2023
Cost
$
360.0
$
362.4
Accumulated amortization
(249.3)
(257.9)
Software, net
$
110.7
$
104.5
Software amortization expense was $25.1 million in 2024, $23.4 million in 2023 and $29.5 million in 2022.
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2024 Annual Report | Avery Dennison Corporation

Cloud Computing Arrangements
Capitalized implementation costs at year-end were as follows:
(In millions)
2024
2023
Cost
$ 97.1
$ 59.8
Accumulated amortization
(17.9)
(9.4)
Capitalized implementation costs, net
$ 79.2
$ 50.4
Capitalized implementation cost amortization expense was $8.0 million in 2024 and $4.5 million in 2023.
Allowance for Credit Losses
Given the short-term nature of trade receivables, our allowance for credit losses is based on the financial condition
of customers, the aging of receivable balances, our historical collections experience, and current and expected future
macroeconomic and market conditions. Balances are written off in the period in which they are determined to be
uncollectible.
The activity related to our allowance for credit losses was as follows:
(In millions)
2024
2023
Balance at beginning of year
$ 34.4
$ 34.4
Provision for credit losses
4.6
4.4
Amounts written off
(8.9)
(6.3)
Other, including foreign currency translation
(1.1)
1.9
Balance at end of year
$ 29.0
$ 34.4
The provision for credit losses was $6.9 million in 2022.
Research and Development
Research and development expense, which was included in “Marketing, general and administrative expense” in
the Consolidated Statements of Income, was as follows:
(In millions)
2024
2023
2022
Research and development expense
$137.8
$135.8
$136.1
Supplemental Cash Flow Information
Cash paid for interest and income taxes was as follows:
(In millions)
2024
2023
2022
Interest
$111.8
$109.9
$ 80.9
Income taxes, net of refunds
226.8
234.9
204.8
Foreign Currency Effects
Gains and losses resulting from foreign currency transactions are included in income in the period incurred.
Transactions in foreign currencies (including receivables, payables and loans denominated in currencies other than the
functional currency), including hedging impacts, were not material in 2024, 2023 or 2022.
Avery Dennison Corporation | 2024 Annual Report
87

Deferred Revenue
Deferred revenue primarily relates to constrained variable consideration on supply agreements for sales of
products, as well as to payments received in advance of performance under a contract. Deferred revenue is recognized as
revenue as or when we perform under a contract.
The following table shows the amounts and balance sheet locations of deferred revenue as of December 28, 2024
and December 30, 2023:
(In millions)
December 28, 2024
December 30, 2023
Other current liabilities
$15.5
$
18.1
Long-term retirement benefits and other liabilities
1.2
1.3
Total deferred revenue
$16.7
$
19.4
Revenue recognized from amounts included in deferred revenue as of December 30, 2023 was $17.5 million in
2024. Revenue recognized from amounts included in deferred revenue as of December 31, 2022 was $21.0 million in
2023. Revenue recognized from amounts included in deferred revenue as of January 1, 2022 was $23.5 million in 2022.
This revenue was included in “Net sales” in the Consolidated Statements of Income.
Supplier Finance Programs
We have agreements with third-party financial institutions to facilitate payments to suppliers. These third-party
financial institutions offer voluntary supply chain finance programs that enable certain of our suppliers, at the supplier’s
sole discretion, to sell our payment obligations to a financial institution on terms directly negotiated with the financial
institution. Participating suppliers decide which payment obligations are sold to the financial institution and we have no
economic interest in a supplier’s decision to sell these payment obligations. We make payments to the financial institution
on the invoice due date, regardless of whether an individual invoice is sold by the supplier to the financial institution. Our
obligations to our suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers’
decisions to sell amounts under these arrangements. Amounts due under our supply chain finance programs are included
in accounts payable in our Consolidated Balance Sheets and activities related to these programs are presented as
operating activities in our Consolidated Statements of Cash Flows. As of December 28, 2024 and December 30, 2023,
the amounts due to financial institutions for suppliers that participate in these programs were $384.6 million and
$397.4 million, respectively.
The activity related to our supplier finance programs was as follows:
(In millions)
2024
Balance at beginning of year
$
397.4
Invoices confirmed during the year
1,339.3
Invoices paid during the year
(1,328.9)
Other, including foreign currency translation
(23.2)
Balance at end of year
$
384.6
Argentine Blue Chip Swap Transactions
During 2019, the Argentine government instituted exchange controls restricting the ability of entities and
individuals to exchange Argentine pesos for foreign currencies or remit foreign currency out of Argentina. Due to these
currency exchange restrictions, markets in Argentina use a legal trading mechanism known as the Blue Chip Swap that
allows entities to transfer U.S. dollars in and out of Argentina. During 2024, we entered into Blue Chip Swap transactions
that resulted in losses of approximately $10 million that we recorded in “Other expense (income), net” in our Consolidated
Statements of Income. Purchases and the proceeds from sales of Argentine Blue Chip Swap securities were included in
investing activities in our Consolidated Statements of Cash Flows.
88
2024 Annual Report | Avery Dennison Corporation

Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
None.
Item 9A. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures. As of the end of the period covered by this report, we carried out an
evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and
our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as
defined in Rule 13a-15(e) and 15d-15(e) of the Exchange Act). Based upon that evaluation, our Chief Executive Officer
and Chief Financial Officer concluded that our disclosure controls and procedures were effective in providing reasonable
assurance that information is recorded, processed, summarized and reported within the time periods specified in the
SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our
Chief Executive Officer and our Chief Financial Officer as appropriate, to allow for timely decisions regarding required
disclosure.
Management’s Report on Internal Control Over Financial Reporting. We are responsible for establishing and
maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the
Exchange Act). Under the supervision and with the participation of our management, including our Chief Executive Officer
and our Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial
reporting based upon the framework in Internal Control – Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission. Based on that evaluation, our management concluded that our
internal control over financial reporting was effective as of December 28, 2024.
The effectiveness of our internal control over financial reporting as of December 28, 2024 has been audited by
PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in the Report of Independent
Registered Public Accounting Firm contained in Item 8 of this report.
Changes in Internal Control over Financial Reporting. There have been no changes in our internal control over
financial reporting during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially
affect, our internal control over financial reporting.
Item 9B. OTHER INFORMATION
There were no Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements (as defined in
Item 408(c) of Regulation S-K) adopted or terminated by any of our directors or executive officers during the fourth
quarter of 2024.
Item 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.
Avery Dennison Corporation | 2024 Annual Report
89

PART III
Item 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The information concerning directors and corporate governance required by this Item is incorporated herein by
reference from the definitive proxy statement for our Annual Meeting of Stockholders to be held on April 24, 2025 (our
“2025 Proxy Statement”), which will be filed with the SEC pursuant to Regulation 14A within 120 days of the end of the
fiscal year covered by this report. The information concerning executive officers required by this Item appears, in part, as
referenced below. If applicable, information concerning any late filings under Section 16(a) of the Exchange Act is
incorporated by reference from our 2025 Proxy Statement.
The information required by this Item concerning our Audit Committee is incorporated by reference from our 2025
Proxy Statement.
INFORMATION ABOUT OUR EXECUTIVE OFFICERS(1)
Name and Position
Age
Executive Officer Since
Former Positions within Past Five Years/
Officer Positions with Avery Dennison
Deon M. Stander
President and
Chief Executive Officer
56
August 2016
2022-2023
President and Chief Operating Officer
2015-2022
Vice President and General Manager, RBIS
2013-2015
Vice President and General Manager,
Global Commercial and Innovation, RBIS
2010-2012
Vice President and General Manager,
Global Commercial, RBIS
Mitchell R. Butier
Executive Chairman
53
March 2007
2022-2023
Chairman and Chief Executive Officer
2019-2022
Chairman, President and Chief Executive
Officer
2016-2019
President and Chief Executive Officer
2015-2016
President and Chief Operating Officer
2014-2015
President, Chief Operating Officer and
Chief Financial Officer
2010-2014
Senior Vice President and Chief Financial
Officer
2007-2010
Vice President, Global Finance, and
Chief Accounting Officer
Danny G. Allouche
Senior Vice President, Chief
Strategy and Corporate
Development Officer, and Interim
Chief Financial Officer
50
November 2024
2022-2024
Senior Vice President and Chief Strategy
and Corporate Development Officer
2021-2022
Vice President, Chief Strategy and
Corporate Development Officer
2016-2021
Vice President, Corporate Development
2015-2016
Vice President, Treasury and Corporate
Development
Gregory S. Lovins
Senior Vice President and
Chief Financial Officer(2)
52
March 2017
2017
Vice President and Interim Chief Financial
Officer
2016-2017
Vice President and Treasurer
2011-2016
Vice President, Global Finance, Materials
Group
Deena Baker-Nel
Senior Vice President and
Chief Human Resources Officer
54
September 2020
2020-2022
Vice President and Chief Human
Resources Officer
2018-2020
Vice President, Human Resources, LGM
2015-2018
Vice President, Human Resources, RBIS
Nicholas R. Colisto
Senior Vice President and
Chief Information Officer
58
September 2020
2018-2022
Vice President and Chief Information
Officer
2012-2018
Senior Vice President and Chief
Information Officer, Xylem Inc.
90
2024 Annual Report | Avery Dennison Corporation

Name and Position
Age
Executive Officer Since
Former Positions within Past Five Years/
Officer Positions with Avery Dennison
Francisco Melo
President, Solutions Group
51
April 2023
2022-2023
Senior Vice President and General
Manager, Avery Dennison Smartrac
2013-2022
Vice President and General Manager,
Avery Dennison Smartrac
2012-2013
Vice President Global Inventory Accuracy
and Loss Prevention, Information
Solutions Market Development
Divina F. Santiago
Vice President, Controller
55
September 2023
2022-2023
Vice President, Finance
2008-2022
Senior Director, Finance
Ignacio J. Walker
Senior Vice President and
Chief Legal Officer
48
September 2020
2020-2022
Vice President and Chief Legal Officer
2020
Vice President and Assistant General
Counsel, Americas
2018-2019
Vice President and Assistant General
Counsel
2013-2017
Vice President and Assistant General
Counsel, RBIS
Ryan D. Yost
President, Materials Group
49
March 2024
2023-2024
Vice President and General Manager,
Identification Solutions and Vestcom
2021-2023
Vice President and General Manager,
Identification Solutions
2019-2021
Vice President and General Manager,
Printer Solutions
(1)
Executive officers are generally elected on the date of our annual stockholder meeting to serve a one-year term or until their successors are duly
elected and qualified.
(2)
On leave of absence
Insider Trading Policy
We have adopted an insider trading policy governing the purchase, sale, and/or other dispositions of our securities
by our directors, officers and employees that we believe is reasonably designed to promote compliance with insider
trading laws, rules and regulations, and applicable exchange listing standards. Our insider trading policy is filed as
Exhibit 19 to this Annual Report on Form 10-K.
Item 11. EXECUTIVE COMPENSATION
The information required by this Item is incorporated by reference from our 2025 Proxy Statement.
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
The information required by this Item is incorporated by reference from our 2025 Proxy Statement.
Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The information required by this Item is incorporated by reference from our 2025 Proxy Statement.
Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
The information required by this Item is incorporated by reference from our 2025 Proxy Statement.
Avery Dennison Corporation | 2024 Annual Report
91

PART IV
Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a)
Financial Statements, Financial Statement Schedule and Exhibits
(1) Financial statements filed as part of this report are listed on the accompanying Index to Financial
Statements.
(2) All financial statement schedules are omitted since the required information is not present or is not
present in amounts sufficient to require submission of the schedule, or because the information
required is included in the consolidated financial statements and notes thereto.
(3) Exhibits filed as a part of this report are listed on the accompanying Exhibit Index. Each management
contract or compensatory plan or arrangement required to be filed as an exhibit to this Form 10-K is
identified as such on the Exhibit Index.
(b) The exhibits required to be filed by Item 601 of Regulation S-K are set forth on the accompanying Exhibit
Index.
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2024 Annual Report | Avery Dennison Corporation

AVERY DENNISON CORPORATION
EXHIBIT INDEX
For the Year Ended December 28, 2024
Exhibit No.
Exhibit Name
Originally
Filed as
Exhibit No.
Filing(1)
3.1(i)
Amended and Restated Certificate of
Incorporation, as filed on April 28, 2011
with the Office of Delaware Secretary of
State
3.1
Current Report on Form 8-K, filed April 29,
2011
3.1(ii)
Certificate of Amendment to Amended and
Restated Certificate of Incorporation,
effective as of April 25, 2024.
3.1
Current Report on Form 8-K, filed April 26,
2024
3.1(iii)
Amended and Restated Bylaws, effective as
of April 25, 2024
3.2
Current Report on Form 8-K,
filed April 26, 2024
4.1
Indenture, dated as of March 15, 1991,
between Registrant and Security Pacific
National Bank, as Trustee (the “1991
Indenture”)
4.1
Registration Statement on Form S-3 (File
No. 33-39491), filed March 19, 1991
4.2
First Supplemental Indenture, dated as of
March 16, 1993, between Registrant and
BankAmerica National Trust Company, as
successor Trustee (the “Supplemental
Indenture”)
4.4
Registration Statement on Form S-3 (File
No. 33-59642), filed March 17, 1993
4.3
Officers’ Certificate establishing a series of
Securities entitled “Medium-Term Notes,
Series C” under the 1991 Indenture, as
amended by the Supplemental Indenture
4.1
Current Report on Form 8-K, filed May 12,
1995
4.4
Indenture, dated as of July 3, 2001,
between Registrant and Chase Manhattan
Bank and Trust Company, National
Association, as trustee (the “2001
Indenture”)
4.1
Registration Statement on Form S-3 (File
No. 333-64558), filed July 3, 2001
4.5
Officers’ Certificate establishing Securities
entitled “6.000% Notes due 2033” under
the 2001 Indenture
4.2
Current Report on Form 8-K, filed
January 16, 2003
4.6
6.000% Notes Due 2033
4.4
Current Report on Form 8-K, filed
January 16, 2003
4.7
Indenture, dated as of November 20, 2007,
between Registrant and Bank of New York
4.2
Current Report on Form 8-K, filed
November 20, 2007
4.8
Third Supplemental Indenture, dated as of
April 8, 2013, between Registrant and Bank
of NY
4.2
Current Report on Form 8-K, filed April 8,
2013
Avery Dennison Corporation | 2024 Annual Report
93

Exhibit No.
Exhibit Name
Originally
Filed as
Exhibit No.
Filing(1)
4.9
Fourth Supplemental Indenture, dated as of
March 3, 2017, between Registrant and
The Bank of New York Mellon Trust
Company, N.A. (“BNY Mellon”) as Trustee
(including Form of 1.250% Senior Notes
due 2025 on Exhibit A thereto)
4.2
Current Report on Form 8-K, filed March 3,
2017
4.10
Fifth Supplemental Indenture, dated as of
December 6, 2018, between Registrant and
BNY Mellon, as Trustee (including Form of
4.875% Senior Notes due 2028 on Exhibit
A thereto)
4.2
Current Report on Form 8-K, filed
December 6, 2018
4.11
Sixth Supplemental Indenture, dated as of
March 11, 2020, between Registrant and
BNY Mellon, as Trustee (including Form of
2.650% Senior Notes due 2030 on Exhibit
A thereto)
4.2
Current Report on Form 8-K, filed March 11,
2020
4.12
Seventh Supplemental Indenture, dated as
of August 18, 2021, between Registrant
and BNY Mellon, as Trustee
4.2
Current Report on Form 8-K filed on
August 18, 2021
4.13
Eighth Supplemental Indenture, dated as of
August 18, 2021, between Registrant and
BNY Mellon, as Trustee (including Form of
2.250% Senior Notes due 2032 on Exhibit
A thereto)
4.3
Current Report on Form 8-K filed on
August 18, 2021
4.14
Ninth Supplemental Indenture, dated as of
March 15, 2023, between Registrant and
The Bank of New York Mellon Trust
Company, N.A., as Trustee (including Form
of 5.750% Senior Notes due 2033 on
Exhibit A thereto)
4.2
Current Report on Form 8-K filed on
March 15, 2023
4.15
Tenth Supplemental Indenture between
Registrant and The Bank of New York
Mellon Trust Company, N.A., as Trustee,
dated as of November 4, 2024 (including
Form of 3.750% Senior Notes due 2034 on
Exhibit A thereto)
4.2
Current Report on Form 8-K, filed on
November 4, 2024
4.16†
Description of Securities
N/A
N/A
10.1
Credit Agreement, dated as of June 26,
2024, among Registrant, as borrower; a
syndicate of lenders party thereto; Mizuho
Bank, Ltd., as administrative agent; Mizuho
Bank, Ltd. and Bank of America, N.A., as
syndication agents; and Citibank, N.A., as
documentation agent
10.1
Current Report on Form 8-K, filed June 27,
2024
10.2*
Amended and Restated Supplemental
Executive Retirement Plan (“SERP”)
10.11.1
Quarterly Report on Form 10-Q, filed
August 12, 2009
94
2024 Annual Report | Avery Dennison Corporation

Exhibit No.
Exhibit Name
Originally
Filed as
Exhibit No.
Filing(1)
10.3*
Complete Restatement and Amendment of
Executive Variable Deferred Compensation
Plan (“EVDCP”)
10.16
1994 Annual Report on Form 10-K, filed
March 30, 1995
10.4*
Amendment No. 1 to EVDCP
10.16.1
1999 Annual Report on Form 10-K, filed
March 30, 2000
10.5*
Amended and Restated 2005 Directors
Variable Deferred Compensation Plan
10.18.2
Quarterly Report on Form 10-Q, filed
May 10, 2011
10.6*
Amended and Restated Stock Option and
Incentive Plan (“Equity Plan”)
A
2012 Proxy Statement on Schedule 14A,
filed March 9, 2012
10.7*
First Amendment to Equity Plan
10.20
2014 Annual Report on Form 10-K, filed
February 25, 2015
10.8*
2017 Incentive Award Plan (“2017 Plan”)
B
2017 Proxy Statement on Schedule 14A,
filed March 10, 2017
10.9*
Amended and Restated Annual Incentive
Plan
10.1
Quarterly Report on Form 10-Q, filed
May 1, 2020
10.10*
Complete Restatement and Amendment of
Executive Deferred Retirement Plan
(“EDRP”)
10.28
1994 Annual Report on Form 10-K, filed
March 30, 1995
10.11*
Amendment No. 1 to EDRP
10.28.1
1999 Annual Report on Form 10-K, filed
March 30, 2000
10.12*
Amendment No. 2 to EDRP
10.28.2
2001 Annual Report on Form 10-K, filed
March 4, 2002
10.13*
2005 Executive Variable Deferred
Retirement Plan, amended and restated
January 1, 2019
4.4
Registration Statement on Form S-8, filed
July 30, 2024
10.14*†
Amended and Restated Key Executive
Change of Control Severance Plan
N/A
N/A
10.15*†
Amended and Restated Executive
Severance Plan
N/A
N/A
10.16*†
Form of Executive Severance Agreement
N/A
N/A
10.17*
Amended and Restated Long-Term
Incentive Unit Plan (“LTI Unit Plan”)
10.2
Quarterly Report on Form 10-Q, filed
May 1, 2020
10.18*
Form of Restricted Stock Unit Agreement
under Equity Plan
10.38
2013 Annual Report on Form 10-K, filed
February 26, 2014
10.19*
Form of Performance Unit Agreement under
Equity Plan
10.39
2013 Annual Report on Form 10-K, filed
February 26, 2014
10.20*
Form of Market-Leveraged Stock Unit
Agreement under Equity Plan
10.40
2013 Annual Report on Form 10-K, filed
February 26, 2014
Avery Dennison Corporation | 2024 Annual Report
95

Exhibit No.
Exhibit Name
Originally
Filed as
Exhibit No.
Filing(1)
10.21*
Form of Long-Term Incentive Unit
Agreement under LTI Unit Plan
10.41
2013 Annual Report on Form 10-K, filed
February 26, 2014
10.22*
Form of Director Restricted Stock Unit
Agreement under 2017 Plan
10.2
Quarterly Report on Form 10-Q, filed
August 1, 2017
10.23*
Form of Employee Market-Leveraged Stock
Unit Agreement under 2017 Plan
10.3
Quarterly Report on Form 10-Q, filed
August 1, 2017
10.24*
Form of Employee Performance Unit
Agreement under 2017 Plan
10.4
Quarterly Report on Form 10-Q, filed
August 1, 2017
10.25*
Form of Employee Restricted Stock Unit
Agreement under 2017 Plan
10.5
Quarterly Report on Form 10-Q, filed
August 1, 2017
10.26*
Form of Employee Non-Qualified Stock
Option Agreement under 2017 Plan
10.6
Quarterly Report on Form 10-Q, filed
August 1, 2017
10.27*
Offer Letter to Gregory Lovins, dated
July 10, 2017
10.1
Quarterly Report on Form 10-Q, filed
August 1, 2017
10.28*
Offer Letter to Deena Baker-Nel, dated
August 26, 2020
10.1
Quarterly Report on Form 10-Q,
filed May 3, 2022
10.29*
Offer Letter to Ignacio Walker, dated
August 25, 2020
10.2
Quarterly Report on Form 10-Q,
filed May 3, 2022
10.30*
Offer Letter to Francisco Melo, dated
February 27, 2023
10.2
Quarterly Report on Form 10-Q, filed
May 2, 2023
10.31*
Offer Letter to Mitchell Butier, dated
May 25, 2023
10.1
Quarterly Report on Form 10-Q, filed
August 1, 2023
10.32*
Offer Letter to Deon Stander, dated May 25,
2023
10.2
Quarterly Report on Form 10-Q, filed
August 1, 2023
10.33
Offer Letter to Ryan Yost, dated
February 12, 2024
10.1
Quarterly Report on Form 10-Q, filed
April 30, 2024
10.34†
Offer Letter to Danny Allouche, dated
November 14, 2024
N/A
N/A
19†
Insider Trading Compliance Policy and
Procedures
N/A
N/A
21†
List of Subsidiaries
N/A
N/A
23†
Consent of PricewaterhouseCoopers LLP,
Independent Registered Public Accounting
Firm
N/A
N/A
24†
Power of Attorney (see Signatures – Power
of Attorney)
N/A
N/A
31.1†
Certification of Chief Executive Officer
pursuant to Section 302 of the Sarbanes-
Oxley Act of 2002
N/A
N/A
96
2024 Annual Report | Avery Dennison Corporation

Exhibit No.
Exhibit Name
Originally
Filed as
Exhibit No.
Filing(1)
31.2†
Certification of Chief Financial Officer
pursuant to Section 302 of the Sarbanes-
Oxley Act of 2002
N/A
N/A
32.1††
Certification of Chief Executive Officer
pursuant to Section 906 of the Sarbanes-
Oxley Act of 2002
N/A
N/A
32.2††
Certification of Chief Financial Officer
pursuant to Section 906 of the Sarbanes-
Oxley Act of 2002
N/A
N/A
97
Policy for Recovery of Erroneously Awarded
Compensation
97
2023 Annual Report on Form 10-K, filed
February 21, 2024
101.INS†††
Inline XBRL Instance Filing – the instance
document does not appear in the Interactive
Data File because its XBRL tags are
embedded within the Inline XBRL
document
N/A
N/A
101.SCH†††
Inline XBRL Extension Schema Filing
N/A
N/A
101.CAL†††
Inline XBRL Extension Calculation Linkbase
Filing
N/A
N/A
101.DEF†††
Inline XBRL Extension Definition Linkbase
Filing
N/A
N/A
101.LAB†††
Inline XBRL Extension Label Linkbase Filing
N/A
N/A
101.PRE†††
Inline XBRL Extension Presentation
Linkbase Filing
N/A
N/A
104†††
Inline XBRL for the cover page of this
Annual Report on Form 10-K, included as
part of the Exhibit 101 inline XBRL
document set
(1)
Unless otherwise noted, the File Number for all filings is File No. 1-7685.
*
Management contract or compensatory plan or arrangement required to be filed as an exhibit to this Form 10-K
pursuant to Item 15(b) of Form 10-K.
†
Filed herewith.
††
This certification is being furnished solely to accompany this report pursuant to 18 U.S.C. 1350, and is not being
filed for purposes of Section 18 of the Exchange Act and is not to be incorporated by reference into any filing of
the registrant, whether made before or after the date hereof, regardless of any general incorporation language in
such filing.
†††
Furnished herewith. Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are
deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the
Securities Act, are deemed not filed for purposes of Section 18 of the Exchange Act and otherwise are not subject
to liability under those sections.
Item 16. FORM 10-K SUMMARY
Not applicable.
Avery Dennison Corporation | 2024 Annual Report
97

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
AVERY DENNISON CORPORATION
By:
/s/ Danny G. Allouche
Danny G. Allouche
Senior Vice President, Chief Strategy and
Corporate Development Officer, and Interim
Chief Financial Officer
Dated: February 26, 2025
98
2024 Annual Report | Avery Dennison Corporation

POWER OF ATTORNEY
Each person whose signature appears below does hereby constitute and appoint Danny G. Allouche and Ignacio J.
Walker, and each of them, with full power of substitution, his or her true and lawful attorney-in-fact to act for him or her
in any and all capacities, to sign this Annual Report on Form 10-K and any or all amendments or supplements thereto,
and to file each of the same, with all exhibits thereto, and other documents in connection therewith, with the Securities
and Exchange Commission, granting unto said attorneys-in-fact, and each of them, full power and authority to do and
perform each and every act and thing requisite and necessary to be done in order to effectuate the same as fully, to all
intents and purposes, as he or she could do in person, hereby ratifying and confirming all that said attorneys-in-fact or
substitutes, or any of them, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and as of the dates indicated.
Signature
Title
Date
/s/ Deon M. Stander
Deon M. Stander
President, Chief Executive Officer
and Director
(Principal Executive Officer)
February 26, 2025
/s/ Danny G. Allouche
Danny G. Allouche
Senior Vice President, Chief Strategy
and Corporate Development Officer,
and Interim Chief Financial Officer
(Principal Financial Officer)
February 26, 2025
/s/ Divina F. Santiago
Divina F. Santiago
Vice President, Controller
(Principal Accounting Officer)
February 26, 2025
/s/ Mitchell R. Butier
Mitchell R. Butier
Executive Chairman
February 26, 2025
/s/ Bradley A. Alford
Bradley A. Alford
Director
February 26, 2025
/s/ Ward H. Dickson
Ward H. Dickson
Director
February 26, 2025
/s/ Andres A. Lopez
Andres A. Lopez
Director
February 26, 2025
/s/ Maria Fernanda Mejia
Maria Fernanda Mejia
Director
February 26, 2025
/s/ Francesca Reverberi
Francesca Reverberi
Director
February 26, 2025
/s/ Patrick T. Siewert
Patrick T. Siewert
Director
February 26, 2025
/s/ William R. Wagner
William R. Wagner
Director
February 26, 2025
Avery Dennison Corporation | 2024 Annual Report
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