Segments (Tables)
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12 Months Ended |
Dec. 31, 2018 |
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| Segment Reporting [Abstract] |
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| Net Sales and Adjusted EBITDA of Reportable Segments |
he 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 | % |
|
| Reconciliation of Non-U.S. GAAP Adjusted EBITDA to U.S. GAAP 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: | | | | | | | | | | | | | | | | 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. |
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| 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 |
|
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| Geographic Information |
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. |
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