Segments (Tables)

6 Months Ended

Jun. 30, 2015

Net Sales and Adjusted EBITDA of Reportable Segments

The following tables show net sales and Adjusted EBITDA by our segment reporting structure:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2015			2014			2015			2014
Net Sales:
Food Care	$	846.6		$	962.1		$	1,726.4		$	1,866.4
As a % of Total Company net sales		47.4	%		48.7	%		48.9	%		49.1	%
Diversey Care		535.0			581.3			1,002.9			1,086.4
As a % of Total Company net sales		30.0	%		29.5	%		28.4	%		28.6	%
Product Care		381.0			408.7			758.1			802.5
As a % of Total Company net sales		21.3	%		20.7	%		21.5	%		21.1	%
Total Reportable Segments Net Sales		1,762.6			1,952.1			3,487.4			3,755.3
Other		22.4			21.5			44.0			46.0
Total Company Net Sales	$	1,785.0		$	1,973.6		$	3,531.4		$	3,801.3

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2015			2014⁽¹⁾			2015			2014⁽¹⁾
Adjusted EBITDA:
Food Care	$	173.7		$	157.8		$	364.2		$	316.8
Adjusted EBITDA Margin		20.5	%		16.4	%		21.1	%		17.0	%
Diversey Care		69.1			72.4			110.1			116.8
Adjusted EBITDA Margin		12.9	%		12.5	%		11.0	%		10.8	%
Product Care		79.0			72.0			154.6			141.1
Adjusted EBITDA Margin		20.7	%		17.6	%		20.4	%		17.6	%
Total Reportable Segments Adjusted EBITDA		321.8			302.2			628.9			574.7
Other		(14.2	)		(18.4	)		(37.1	)		(40.2	)
Non-U.S. GAAP Total Company Adjusted EBITDA	$	307.6		$	283.8		$	591.8		$	534.5
Adjusted EBITDA Margin		17.2	%		14.4	%		16.8	%		14.1	%

⁽¹⁾

During the fourth quarter of 2014, we changed the method of valuing our inventories that used the LIFO method to the FIFO method, so that all of our inventories are now valued at FIFO. We applied this change in accounting principle retrospectively. Accordingly certain previously reported financial information has been revised. See Note 1, “Organization and Basis of Presentation-Changes in Accounting/Retrospective Application” for additional details regarding this accounting policy change.

Reconciliation of Total Company Adjusted EBITDA to Net Earnings

The following table shows a reconciliation of Total Company Adjusted EBITDA to net earnings available to common stockholders:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2015			2014⁽¹⁾			2015			2014⁽¹⁾
Total Company Adjusted EBITDA	$	307.6		$	283.8		$	591.8		$	534.5
Depreciation and amortization⁽²⁾		(69.3	)		(81.6	)		(142.4	)		(164.4	)
Special items:
Accelerated depreciation of non-strategic assets related to restructuring programs		(0.3	)		(0.1	)		0.3			(0.1	)
Restructuring and other charges⁽³⁾		(16.9	)		(14.1	)		(29.6	)		(20.2	)
Other restructuring associated costs included in cost of sales and selling, general and administrative expenses		(10.2	)		(9.6	)		(19.3	)		(15.0	)
SARs		(1.6	)		(1.7	)		(4.5	)		(2.2	)
Foreign currency exchange (loss) gains related to Venezuelan subsidiaries		(30.5	)		0.2			(29.7	)		(14.8	)
Loss on debt redemption and refinancing activities		(110.8	)		(0.4	)		(111.3	)		(0.8	)
Gain from Claims Settlement in 2014 and related costs	—				—			—			21.1
Gain from sale of North America foam trays and absorbent pads business		29.2			—			29.2			—
Other income (expense), net		4.7			(9.6	)		7.2			(11.6	)
Interest expense		(59.0	)		(73.9	)		(117.5	)		(152.4	)
Income tax provision		14.8			32.9			48.9			43.1
Net earnings available to common stockholders	$	28.1		$	60.1		$	125.3		$	131.0

⁽¹⁾

During the fourth quarter of 2014, we changed the method of valuing certain of our inventories that used the LIFO method to the FIFO method, so that all of our inventories are now valued at FIFO. We applied this change in accounting principle retrospectively. Accordingly certain previously reported financial information has been revised. See Note 1, “Organization and Basis of Presentation-Changes in Accounting/Retrospective Application” for additional details regarding this accounting policy change. The table below represents the impact to Earnings before income tax provision for the three month and six month periods ended June 30, 2014 had we remained on the LIFO method of valuing those inventories:

	Three Months Ended			Six Months Ended
(In millions)	June 30, 2014			June 30, 2014
Food Care	$	(1.6	)	$	(2.1	)
Diversey Care		0.1			—
Product Care		1.1			0.2
Total reportable segments		(0.4	)		(1.9	)
Other		—			0.1
Total Company LIFO Adjustments	$	(0.4	)	$	(1.8	)

⁽²⁾	Depreciation and amortization by segment is as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2015		2014		2015		2014
Food Care	$	26.7	$	27.1	$	55.2	$	59.1
Diversey Care		25.2		29.8		51.3		62.1
Product Care		9.4		9.9		19.5		20.5
Total reportable segments		61.3		66.8		126.0		141.7
Other		8.0		14.8		16.4		22.7
Total Company depreciation and amortization⁽¹⁾	$	69.3	$	81.6	$	142.4	$	164.4

⁽¹⁾	Includes share-based incentive compensation.

⁽³⁾	Restructuring and other charges by segment were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2015		2014		2015		2014
Food Care	$	7.2	$	7.0	$	14.1	$	11.1
Diversey Care		6.3		3.4		9.5		3.8
Product Care		3.3		3.5		5.9		5.0
Total reportable segments		16.8		13.9		29.5		19.9
Other		0.1		0.2		0.1		0.3
Total Company restructuring and other charges	$	16.9	$	14.1	$	29.6	$	20.2

Assets by Reportable Segments

The following table shows assets allocated by our segment reporting structure. Only assets identifiable by segment and reviewed by our chief operating decision maker by segment are allocated by the reportable segment assets, which are trade receivables, net, and finished goods inventory, net. All other assets are included in “Assets not allocated.”

	June 30,		December 31,
(In millions)	2015		2014
Assets:
Trade receivables, net, and finished goods inventories, net
Food Care	$	701.4	$	682.1
Diversey Care		566.4		514.5
Product Care		281.1		279.1
Other		16.4		14.0
Total segments and other		1,565.3		1,489.7
Assets not allocated
Cash and cash equivalents		569.2		322.6
Property and equipment, net		928.4		970.6
Goodwill		2,959.7		2,998.6
Intangible assets, net		832.4		872.2
Assets held for sale		5.8		69.3
Other		1,094.6		1,318.7
Total	$	7,955.4	$	8,041.7