Segments

As a result of the sale of Diversey, we have changed our segment reporting structure. The Food Care division now excludes the food hygiene and cleaning business, which is included in discontinued operations, and includes our Medical Applications and New Ventures businesses, which were previously reported in the “Other” category. The Other category also previously included “Corporate” which is now its own category.

The Company’s segment reporting structure now consists of two reportable segments and a Corporate category as follows:


•	Food Care (including Medical Applications and New Ventures businesses);


•	Product Care; and


•	Corporate.

The Company’s Food Care and Product Care segments are considered reportable segments under FASB ASC Topic 280. Our reportable segments are aligned with similar groups of products and management team. Corporate 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.

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. As of January 1, 2017 we modified our calculation of Adjusted EBITDA to exclude interest income. The impact in this modification was $2.0 million and $3.6 million for the three and six months ended June 30, 2016, respectively. We also disclose restructuring and other charges by segment, although these items are not included in the segment performance metric Adjusted EBITDA since restructuring and other charges are categorized as special items as outlined in the table reconciling U.S. GAAP net earnings from continuing operations to Non-U.S. GAAP Total Company Adjusted EBITDA set forth below. The accounting policies of the reportable segments and Corporate are the same as those applied to the Condensed Consolidated Financial Statements.

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



	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2017			2016			2017			2016
Net Sales:
Food Care	$	679.5		$	664.6		$	1,335.1		$	1,303.0
As a % of Total Company net sales	63.5		%	64.0		%	63.5		%	63.7		%
Product Care	390.8			374.3			767.4			741.8
As a % of Total Company net sales	36.5		%	36.0		%	36.5		%	36.3		%
Total Company Net Sales	$	1,070.3		$	1,038.9		$	2,102.5		$	2,044.8

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2017			2016			2017			2016
Adjusted EBITDA from continuing operations
Food Care	$	146.2		$	146.5		$	287.7		$	285.1
Adjusted EBITDA Margin	21.5		%	22.0		%	21.5		%	21.9		%
Product Care	77.1			78.7			151.2			155.8
Adjusted EBITDA Margin	19.7		%	21.0		%	19.7		%	21.0		%
Corporate⁽¹⁾	(27.0)			(31.5)			(60.7)			(61.0)
Non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations	$	196.3		$	193.7		$	378.2		$	379.9
Adjusted EBITDA Margin	18.3		%	18.6		%	18.0		%	18.6		%


⁽¹⁾	Corporate includes costs previously allocated to the Diversey Care segment and food hygiene and cleaning business of our Food Care segment reported within discontinued operations of $2.9 million and $2.2 million for three months ended June 30, 2017 and 2016, respectively, and $10.9 million and $7.3 million for six months ended June 30, 2017 and 2016, respectively.

The following table shows a reconciliation of U.S. GAAP net earnings from continuing operations to Non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations:



	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2017			2016			2017			2016
Net earnings (loss) from continuing operations	$	28.5		$	1.6		$	(25.3	)	$	76.5
Interest expense	(50.9		)	(50.9		)	(99.7		)	(101.8		)
Interest income	3.2			2.0			5.4			3.6
Income tax provision	56.1			53.0			192.5			70.6
Depreciation and amortization⁽¹⁾⁽³⁾	(36.4		)	(38.5		)	(73.6		)	(73.4		)
Accelerated depreciation and amortization of fixed assets and intangible assets for Venezuelan subsidiaries⁽¹⁾	—			0.7			—			0.7
Special Items:
Restructuring and other charges⁽¹⁾⁽⁴⁾	(2.0		)	(0.9		)	(3.9		)	(0.7		)
Other restructuring associated costs included in cost of sales and selling, general and administrative expenses	(5.9		)	(4.1		)	(9.8		)	(8.0		)
SARs	—			(0.9		)	—			(1.0		)
Foreign currency exchange loss related to Venezuelan subsidiaries	—			(0.6		)	—			(1.6		)
Charges related to ceasing operations in Venezuela⁽¹⁾	—			(47.3		)	—			(47.3		)
(Loss) gain on sale of North American foam trays and absorbent pads business and European food trays business	(0.2		)	—			2.1			(1.6		)
Loss related to the sale of other businesses, investments and property, plant and equipment	(0.2		)	(0.4		)	(0.2		)	(2.1		)
Charges incurred related to the sale of Diversey	(17.8		)	—			(33.9		)	—
Other special items⁽²⁾	(1.5		)	1.8			2.6			0.4
Pre-tax impact of Special items	(27.6		)	(52.4		)	(43.1		)	(61.9		)
Non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations	$	196.3		$	193.7		$	378.2		$	379.9


⁽¹⁾	Due to the ongoing challenging economic situation in Venezuela, the Company approved a program in the second quarter of 2016 to cease operations in the country. Refer to Note 1, "Organization and Basis of Presentation," of the Notes to the Condensed Consolidated Financial Statement for further details.

⁽²⁾

Other special items for the six months ended June 30, 2017 primarily included a recovered wage tax as the result of a court ruling partially offset by legal fees associated with restructuring and acquisitions. For the three months ended June 30, 2017 other special items primarily included an expense related to the recovered wage tax reserve as well as legal fees associated with restructuring and acquisitions. Other special items for the three and six months ended June 30, 2016 primarily included a reduction in a non-income tax reserve following the completion of a governmental audit partially offset by legal fees associated with restructuring and acquisitions.


⁽³⁾	Depreciation and amortization by segment is as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2017		2016		2017		2016
Food Care	$	24.3	$	22.3	$	49.4	$	45.2
Product Care	$	11.0	$	9.4	$	22.5	$	19.0
Corporate	$	1.1	$	6.8	$	1.7	$	9.2
Total Company depreciation and amortization⁽¹⁾	$	36.4	$	38.5	$	73.6	$	73.4


⁽¹⁾	Includes share-based incentive compensation of $10.9 million and $18.9 million for the three and six months ended June 30, 2017, respectively, and $13.9 million and $25.4 million for the three and six ended June 30, 2016, respectively.


⁽⁴⁾	Restructuring and other charges by segment were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2017		2016		2017		2016
Food Care	$	1.3	$	0.5	$	2.5	$	0.4
Product Care	0.7		0.4		1.4		0.3
Total Company restructuring and other charges⁽¹⁾	$	2.0	$	0.9	$	3.9	$	0.7

⁽¹⁾For the three and six months ended June 30, 2016 restructuring and other charges excludes $0.3 million related to severance and termination benefits for employees in our Venezuelan subsidiaries.

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.”



(In millions)	June 30, 2017		December 31, 2016
Assets:
Trade receivables, net, and finished goods inventories, net
Food Care	$	383.4	$	459.8
Product Care	230.0		261.5
Total segments	$	613.4	$	721.3
Assets not allocated
Cash and cash equivalents	$	243.0	$	333.7
Property and equipment, net	926.7		889.6
Goodwill	1,889.1		1,882.9
Intangible assets, net	41.0		40.1
Assets held for sale	3,016.4		2,851.7
Other	897.3		679.9
Total	$	7,626.9	$	7,399.2