Segments (Tables)
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9 Months Ended |
Sep. 30, 2017 |
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| Segment Reporting [Abstract] |
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| 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
September 30, | | Nine Months Ended
September 30, | (In millions) | | 2017 | | 2016 | | 2017 | | 2016 | Net Sales: | | |
| | |
| | |
| | |
| Food Care | | $ | 716.0 |
| | $ | 676.2 |
| | $ | 2,051.1 |
| | $ | 1,979.2 |
| As a % of Total Company net sales | | 63.3 | % | | 63.5 | % | | 63.4 | % | | 63.6 | % | Product Care | | 415.3 |
| | 388.9 |
| | 1,182.7 |
| | 1,130.7 |
| As a % of Total Company net sales | | 36.7 | % | | 36.5 | % | | 36.6 | % | | 36.4 | % | Total Company Net Sales | | $ | 1,131.3 |
| | $ | 1,065.1 |
| | $ | 3,233.8 |
| | $ | 3,109.9 |
| | | | | | | | Three Months Ended
September 30, | | Nine Months Ended
September 30, | (In millions) | | 2017 | | 2016 | | 2017 | | 2016 | Adjusted EBITDA from continuing operations | | |
| | |
| | |
| | |
| Food Care | | $ | 158.3 |
| | $ | 155.6 |
| | $ | 446.0 |
| | $ | 440.7 |
| Adjusted EBITDA Margin | | 22.1 | % | | 23.0 | % | | 21.7 | % | | 22.3 | % | Product Care | | 86.5 |
| | 88.0 |
| | 237.7 |
| | 243.8 |
| Adjusted EBITDA Margin | | 20.8 | % | | 22.6 | % | | 20.1 | % | | 21.6 | % | Corporate(1) | | (28.0) |
| | (30.7) |
| | (88.7) |
| | (91.7) |
| Non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations | | $ | 216.8 |
| | $ | 212.9 |
| | $ | 595.0 |
| | $ | 592.8 |
| Adjusted EBITDA Margin | | 19.2 | % | | 20.0 | % | | 18.4 | % | | 19.1 | % |
| | (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 $2.8 million and $3.5 million for the three months ended September 30, 2017 and 2016, respectively, and $13.7 million and $10.4 million for the nine months ended September 30, 2017 and 2016, respectively. |
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| Reconciliation of Total Company Adjusted EBITDA to Net Earnings |
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
September 30, | | Nine Months Ended
September 30, | (In millions) | | 2017 | | 2016 | | 2017 | | 2016(1) | Net earnings from continuing operations | | $ | 62.4 |
| | $ | 63.8 |
| | $ | 37.8 |
| | $ | 141.1 |
| Interest expense | | (54.0 | ) | | (49.6 | ) | | (153.7 | ) | | (151.4 | ) | Interest income | | 4.9 |
| | 1.7 |
| | 10.3 |
| | 5.3 |
| Income tax provision | | 43.7 |
| | 54.1 |
| | 236.5 |
| | 124.7 |
| Depreciation and amortization(3) | | (42.7 | ) | | (39.6 | ) | | (116.3 | ) | | (113.0 | ) | Accelerated depreciation and amortization of fixed assets and intangible assets for Venezuelan subsidiaries | | — |
| | 0.1 |
| | — |
| | 0.8 |
| Special Items: | | | | | | | | | Restructuring and other charges(4) | | (6.2 | ) | | (1.3 | ) | | (9.2 | ) | | (1.1 | ) | Other restructuring associated costs included in cost of sales and selling, general and administrative expenses | | (2.9 | ) | | (5.2 | ) | | (12.7 | ) | | (13.2 | ) | SARs | | — |
| | 0.3 |
| | — |
| | (0.7 | ) | Foreign currency exchange loss related to Venezuelan subsidiaries | | — |
| | — |
| | — |
| | (1.6 | ) | Charges related to ceasing operations in Venezuela | | — |
| | — |
| | — |
| | (47.3 | ) | Gain (loss) on sale of North American foam trays and absorbent pads business and European food trays business | | 0.2 |
| | — |
| | 2.3 |
| | (1.6 | ) | (Loss) gain related to the sale of other businesses, investments and property, plant and equipment | | (6.9 | ) | | 2.1 |
| | (7.1 | ) | | — |
| Charges incurred related to the sale of Diversey | | (13.7 | ) | | — |
| | (47.6 | ) | | — |
| Settlement/curtailment benefits related to retained Diversey retirement plans | | 13.5 |
| | — |
| | 13.5 |
| | — |
| Other special items(2) | | (2.9 | ) | | (3.5 | ) | | (0.2 | ) | | (3.2 | ) | Pre-tax impact of Special items | | (18.9 | ) | | (7.6 | ) | | (61.0 | ) | | (68.7 | ) | Non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations | | $ | 216.8 |
| | $ | 212.9 |
| | $ | 595.0 |
| | $ | 592.8 |
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| | (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 three and nine months ended September 30, 2017, primarily included transaction fees related to various divestitures and acquisitions. Other special items for the three and nine months ended September 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
September 30, | | Nine Months Ended
September 30, | (In millions) | | 2017 | | 2016 | | 2017 | | 2016 | Food Care | | $ | 26.4 |
| | $ | 23.1 |
| | $ | 75.8 |
| | $ | 68.3 |
| Product Care | | $ | 11.7 |
| | $ | 9.6 |
| | $ | 34.2 |
| | $ | 28.6 |
| Corporate | | $ | 4.6 |
| | $ | 6.9 |
| | $ | 6.3 |
| | $ | 16.1 |
| Total Company depreciation and amortization(1) | | $ | 42.7 |
| | $ | 39.6 |
| | $ | 116.3 |
| | $ | 113.0 |
|
| | (1) | Includes share-based incentive compensation of $12.3 million and $31.2 million for the three and nine months ended September 30, 2017, respectively, and $12.2 million and $37.6 million for the three and nine months ended September 30, 2016, respectively. |
| | (4) | Restructuring and other charges by segment were as follows: |
| | | | | | | | | | | | | | | | | | | | Three Months Ended
September 30, | | Nine Months Ended
September 30, | (In millions) | | 2017 | | 2016 | | 2017 | | 2016 | Food Care | | $ | 3.9 |
| | $ | 0.8 |
| | $ | 5.8 |
| | $ | 0.7 |
| Product Care | | 2.3 |
| | 0.5 |
| | 3.4 |
| | 0.4 |
| Total Company restructuring and other charges(1) | | $ | 6.2 |
| | $ | 1.3 |
| | $ | 9.2 |
| | $ | 1.1 |
|
(1) For the nine months ended September 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) | | September 30, 2017 | | December 31, 2016 | Assets: | | |
| | |
| Trade receivables, net, and finished goods inventories, net | | |
| | |
| Food Care | | $ | 519.0 |
| | $ | 459.8 |
| Product Care | | 334.0 |
| | 261.5 |
| Total segments | | $ | 853.0 |
| | $ | 721.3 |
| Assets not allocated | | | | | Cash and cash equivalents | | $ | 1,304.7 |
| | $ | 333.7 |
| Property and equipment, net | | 951.0 |
| | 889.6 |
| Goodwill | | 1,898.3 |
| | 1,882.9 |
| Intangible assets, net | | 44.8 |
| | 40.1 |
| Assets held for sale | | 20.8 |
| | 2,851.7 |
| Other | | 866.8 |
| | 679.9 |
| Total | | $ | 5,939.4 |
| | $ | 7,399.2 |
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