Segments

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


•	Food Care; and


•	Product Care.

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. The Company evaluates performance of the reportable segments based on the results of each segment. The Company allocates expense to each segment based on various factors including direct usage of resources, allocation of headcount, allocation of software licenses or, in cases where costs are not clearly delineated, costs may be allocated on portion of either net trade sales or an expense factor such as cost of goods sold.

To accelerate productivity improvements and elimination of operational redundancies, the Company implemented a change in allocation of Corporate expenses. These expenses are now allocated to Food Care and Product Care segments. For comparison purposes, the Company presented 2017 and 2016 results to reflect the revised allocation of these costs. This change in expense allocation has no impact on the Company's reportable segments or total Company operating results.

We allocate and disclose depreciation and amortization expense to our segments, although depreciation and amortization are not included in the segment performance metric Adjusted EBITDA. We also allocate and disclose restructuring and other charges and impairment of goodwill and other intangible assets by segment, although they 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. The accounting policies of the reportable segments and Corporate are the same as those applied to the Consolidated Financial Statements. Refer to "Non-U.S. GAAP Information" for additional details on the use and calculation of our non-U.S. GAAP measures presented below.

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



	Year Ended December 31,
(In millions)	2018			2017			2016
Net Sales
Food Care	$	2,908.1		$	2,815.2		$	2,686.8
As a % of Total Company net sales	61.4		%	63.1		%	63.8		%
Product Care	1,824.6			1,646.4			1,524.5
As a % of Total Company net sales	38.6		%	36.9		%	36.2		%
Total Company Net Sales	$	4,732.7		$	4,461.6		$	4,211.3


	Year Ended December 31,
(In millions)	2018			2017			2016
Adjusted EBITDA from continuing operations
Food Care	$	577.8		$	538.1		$	520.1
Adjusted EBITDA Margin	19.9		%	19.1		%	19.4		%
Product Care	318.6			292.2			284.8
Adjusted EBITDA Margin	17.5		%	17.7		%	18.7		%
Corporate	(6.9		)	3.0			4.3
Non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations	$	889.5		$	833.3		$	809.2
Adjusted EBITDA Margin	18.8		%	18.7		%	19.2		%

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



	Year Ended December 31,
(In millions)	2018			2017			2016
Net earnings from continuing operations⁽¹⁾	$	150.3		$	62.8		$	292.3
Plus: Interest expense, net	(177.9		)	(184.2		)	(191.9		)
Plus: Income tax provision	307.5			330.5			95.6
Plus: Depreciation and amortization⁽³⁾	(161.4		)	(158.3		)	(154.0		)
Less: Depreciation and amortization adjustments	2.4			—			1.7
Plus Special Items:
Restructuring and other charges⁽⁴⁾	(47.8		)	(12.1		)	(2.5		)
Other restructuring associated costs	(15.8		)	(14.3		)	(19.8		)
Foreign currency exchange loss due to highly inflationary economies	(2.5		)	—			(1.7		)
Charges related to ceasing operations in Venezuela⁽²⁾	—			—			(48.5		)
Charges related to acquisition and divestiture activity	(13.3		)	(15.5		)	(1.8		)
Charges incurred related to the sale of Diversey	(20.9		)	(68.6		)	(1.4		)
Gain from class-action litigation settlement	14.9			—			—
Curtailment related to retained Diversey retirement plans	—			13.5			—
Other Special Items⁽⁵⁾	(9.4		)	(0.5		)	(1.4		)
Pre-tax impact of Special Items	(94.8		)	(97.5		)	(77.1		)
Non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations	$	889.5		$	833.3		$	809.2

⁽¹⁾

The sign values of the individual line items are consistent with those presented on our Consolidated Statements of Operations, where applicable. Interest expense, net; Income tax provision; Depreciation and amortization, net of adjustments and total Pre-tax impact of Special Items should be added to net earnings from continuing operations to calculate Non-U.S. GAAP Total Company Adjusted EBTIDA from continuing operations.


⁽²⁾	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 2 “Summary of Significant Accounting Policies and Recently Issued Accounting Standards," of the Notes to Consolidated Financial Statements for further details.


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



	Year Ended December 31,
(In millions)	2018		2017		2016
Food Care	$	105.4	$	108.9	$	110.0
Product Care	56.0		49.4		44.0
Total Company depreciation and amortization⁽ⁱ⁾	$	161.4	$	158.3	$	154.0


⁽ⁱ⁾	Includes share-based incentive compensation of $29.9 million in 2018, $38.2 million in 2017 and $50.9 million in 2016.


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



	Year Ended December 31,
(In millions)	2018		2017		2016
Food Care	$	17.7	$	7.6	$	1.6
Product Care	30.1		4.5		0.9
Total Company restructuring and other charges⁽ⁱ⁾	$	47.8	$	12.1	$	2.5


⁽ⁱ⁾	For the year ended December 31, 2016 restructuring and other charges excludes $0.3 million related to severance and termination benefits for employees in our Venezuelan subsidiaries.


⁽⁵⁾	Other Special Items for the year ended December 31, 2018 primarily included fees related to professional services. Other Special Items for the year ended December 31, 2017 primarily included transaction costs related to reorganizations. Other Special Items for the year ended December 31, 2016 primarily included legal fees associated with restructuring.

Assets by Reportable Segments

The following table shows assets allocated by reportable segment. Assets allocated by reportable segment include: trade receivables, net, inventory, net, property and equipment, net, goodwill, intangible assets, net and leased systems, net.



	December 31,
(In millions)	2018		2017
Assets allocated to segment:
Food Care	$	1,541.5	$	1,545.5
Product Care	2,643.5		2,620.2
Total segments	$	4,185.0	$	4,165.7
Assets not allocated:
Cash and cash equivalents	271.7		594.0
Assets held for sale	0.6		4.0
Income tax receivables	58.4		85.1
Other receivables	81.3		90.2
Deferred taxes	170.5		176.2
Other	282.7		165.1
Total	$	5,050.2	$	5,280.3

Geographic Information



	Year Ended December 31,
(In millions)	2018		2017		2016
Net sales⁽¹⁾:
North America⁽³⁾	$	2,548.9	$	2,415.0	$	2,237.8
EMEA	1,038.0		984.7		962.7
Latin America	417.1		409.3		396.8
APAC	728.7		652.6		614.0
Total	$	4,732.7	$	4,461.6	$	4,211.3
Total long-lived assets⁽¹⁾⁽²⁾:
North America	$	726.0	$	639.6
EMEA	270.5		274.1
Latin America	67.3		74.6
APAC	211.8		226.0
Total	$	1,275.6	$	1,214.3


⁽¹⁾	Net sales to external customers attributed to geographic areas represent net sales to external customers based on destination. No non-U.S. country accounted for net sales in excess of 10% of consolidated net sales for the years ended December 31, 2018, 2017 or 2016 or long-lived assets in excess of 10% of consolidated long-lived assets at December 31, 2018 and 2017.


⁽²⁾	Total long-lived assets represent total assets excluding total current assets, deferred tax assets, goodwill, intangible assets and non-current assets held for sale.


⁽³⁾	Net sales to external customers within the U.S. were $2,402.8 million, $2,278.6 million and $2,112.1 million for the years ended December 31, 2018, 2017 and 2016, respectively.