Note 4 Segments

The Company’s segment reporting structure consists of three reportable segments and an “Other” category and is as follows:

Food Care;

Diversey Care;

Product Care; and

Other (includes Corporate, Medical Applications and New Ventures businesses)

The Company’s Food Care, Diversey Care and Product Care segments are considered reportable segments under FASB ASC Topic 280. Our reportable segments are aligned with similar groups of products. Other includes Corporate and the Medical Applications and New Ventures businesses. Other includes certain costs that are not allocated to the reportable segments, primarily consisting of unallocated corporate overhead costs, including administrative functions and cost recovery variances not allocated to the reportable segments from global functional expenses.

Other also includes restructuring and other associated costs, expenses related to stock appreciation rights (“SARs”), which were issued in connection with the acquisition of Diversey in 2011, loss on debt redemptions and foreign currency exchange gains/losses related to Venezuelan subsidiaries and other one-time expenses and/or gains.

We allocate and disclose depreciation and amortization expense to our segments, although property and equipment, net is not allocated to the segment assets, nor is depreciation and amortization included in the segment performance metric Adjusted EBITDA. We also disclose restructuring and other charges and impairment of goodwill and other intangible assets by segment, although these items are not included in the segment performance metric Adjusted EBITDA since restructuring and other charges and impairment of goodwill and other intangible assets are categorized as special items as discussed above. The accounting policies of the reportable segments and Other are the same as those applied to the consolidated financial statements.

The following tables show Net Sales and Adjusted EBITDA by our segment reporting structure:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In millions)	2015			2014			2015			2014
Net Sales:
Food Care	$	836.4		$	983.5		$	2,562.8		$	2,849.9
As a % of Total Company net sales		47.9	%		49.8	%		48.6	%		49.3	%
Diversey Care		501.8			550.8			1,504.7			1,637.2
As a % of Total Company net sales		28.7	%		27.9	%		28.5	%		28.3	%
Product Care		384.7			420.7			1,142.8			1,223.2
As a % of Total Company net sales		22.0	%		21.3	%		21.7	%		21.2	%
Total Reportable Segments Net Sales		1,722.9			1,955.0			5,210.3			5,710.3
Other		23.3			20.5			67.3			66.5
Total Company Net Sales	$	1,746.2		$	1,975.5		$	5,277.6		$	5,776.8

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In millions)	2015			2014⁽¹⁾			2015			2014⁽¹⁾
Adjusted EBITDA:
Food Care	$	168.4		$	181.2		$	532.6		$	498.0
Adjusted EBITDA Margin		20.1	%		18.4	%		20.8	%		17.5	%
Diversey Care		66.4			69.9			176.5		186.7
Adjusted EBITDA Margin		13.2	%		12.7	%		11.7	%		11.4	%
Product Care		81.0			74.4		235.6			215.5
Adjusted EBITDA Margin		21.1	%		17.7	%		20.6	%		17.6	%
Total Reportable Segments Adjusted EBITDA		315.8			325.5			944.7			900.2
Other		(15.8	)		(23.2	)		(52.9	)		(63.4	)
Non-U.S. GAAP Total Company Adjusted EBITDA	$	300.0		$	302.3		$	891.8		$	836.8
Adjusted EBITDA Margin		17.2	%		15.3	%		16.9	%		14.5	%

⁽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.

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In millions)	2015			2014⁽¹⁾			2015			2014⁽¹⁾
Total Company Adjusted EBITDA	$	300.0		$	302.3		$	891.8		$	836.8
Depreciation and amortization⁽²⁾		(68.7	)		(77.3	)		(211.1	)		(241.7	)
Special items:
Accelerated depreciation of non-strategic assets related to restructuring programs		(0.1	)		0.3			0.2			0.2
Restructuring and other charges⁽³⁾		(38.4	)		(11.4	)		(68.0	)		(31.6	)
Other restructuring associated costs included in cost of sales and selling, general and administrative expenses		(13.0	)		(8.4	)		(32.2	)		(22.8	)
Development grant matter included in selling, general and administrative expenses		—			(14.0	)		—			(14.0	)
SARs		0.4			(1.0	)		(4.1	)		(3.2	)
Impairments of equity method investment		—			—			—			(5.7	)
Foreign currency exchange (loss) gains related to Venezuelan subsidiaries		(1.0	)		(4.1	)		(30.7	)		(18.9	)
Loss on debt redemption and refinancing activities		0.6			(17.7	)		(110.7	)		(18.5	)
Gain (loss) from Claims Settlement in 2014 and related costs		—			—			—			21.1
Gain (loss) from sale of North America foam trays and absorbent pads business		(0.5	)		—			28.7			—
Non-operating charge for contingent guarantee included in other income (expense), net		—			(2.5	)		—			(2.5	)
Other special items		1.5			1.0			8.6			(5.5	)
Interest expense		(54.8	)		(69.7	)		(172.3	)		(222.1	)
Income tax provision		39.4			36.7			88.3			79.8
Net earnings available to common stockholders	$	86.6		$	60.8		$	211.9		$	191.8

⁽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 nine month periods ended September 30, 2014 had we remained on the LIFO method of valuing those inventories:

	Three Months Ended		Nine Months Ended
(In millions)	September 30, 2014		September 30, 2014
Food Care	$	2.8	$	0.7
Diversey Care		—		—
Product Care		—		0.1
Total reportable segments		2.8		0.8
Other		—		—
Total Company LIFO Adjustments	$	2.8	$	0.8

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2015		2014		2015		2014
Food Care	$	26.6	$	30.6	$	81.8	$	92.1
Diversey Care		25.7		31.9		77.0		98.9
Product Care		9.3		9.8		28.8		30.7
Total reportable segments		61.6		72.3		187.6		221.7
Other		7.1		5.0		23.5		20.0
Total Company depreciation and amortization⁽¹⁾	$	68.7	$	77.3	$	211.1	$	241.7

⁽¹⁾	Includes share-based incentive compensation.

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2015		2014		2015		2014
Food Care	$	15.4	$	1.8	$	29.5	$	12.9
Diversey Care		16.0		8.2		25.5		12.0
Product Care		6.7		1.3		12.6		6.3
Total reportable segments		38.1		11.3		67.6		31.2
Other		0.3		0.1		0.4		0.4
Total Company restructuring and other charges	$	38.4	$	11.4	$	68.0	$	31.6

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.”

	September 30,		December 31,
(In millions)	2015		2014
Assets:
Trade receivables, net, and finished goods inventories, net
Food Care	$	613.3	$	682.1
Diversey Care		519.9		514.5
Product Care		251.9		279.1
Other		16.7		14.0
Total segments and other		1,401.8		1,489.7
Assets not allocated
Cash and cash equivalents		334.3		322.6
Property and equipment, net		905.9		970.6
Goodwill		2,917.0		2,998.6
Intangible assets, net		812.8		872.2
Assets held for sale		5.5		69.3
Other		1,209.0		1,318.7
Total	$	7,586.3	$	8,041.7