Segments (Tables)

9 Months Ended

Sep. 30, 2019

Net Sales and Adjusted EBITDA by Reportable Segments

The following tables show Net Sales and Adjusted EBITDA by reportable segment:



	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2019			2018			2019			2018
Net Sales:
Food Care	$	729.6		$	727.2		$	2,120.6		$	2,136.5
As a % of Total Company net sales	59.9		%	61.3		%	60.7		%	61.5		%
Product Care	488.9			459.0			1,371.6			1,335.9
As a % of Total Company net sales	40.1		%	38.7		%	39.3		%	38.5		%
Total Company Net Sales	$	1,218.5		$	1,186.2		$	3,492.2		$	3,472.4

	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2019			2018			2019			2018
Adjusted EBITDA from continuing operations
Food Care	$	159.6		$	145.4		$	458.1		$	415.5
Adjusted EBITDA Margin	21.9		%	20.0		%	21.6		%	19.4		%
Product Care	84.0			76.4			243.0			233.3
Adjusted EBITDA Margin	17.2		%	16.6		%	17.7		%	17.5		%
Corporate	(2.5		)	(2.9		)	(7.5		)	(7.6		)
Total Company Adjusted EBITDA from continuing operations	$	241.1		$	218.9		$	693.6		$	641.2
Adjusted EBITDA Margin	19.8		%	18.5		%	19.9		%	18.5		%

Reconciliation of Net Earning (Loss) to Total Company Adjusted EBITDA

The following table shows a reconciliation of net earnings before income tax provision to Total Company Adjusted EBITDA from continuing operations:



	Three Months Ended September 30,					Nine Months Ended September 30,
(In millions)	2019		2018			2019		2018
Earnings before income tax provision	$	102.3	$	109.0		$	234.8	$	339.3
Interest expense, net	48.5		44.8			136.6		131.3
Depreciation and amortization, net of adjustments⁽¹⁾	53.2		41.0			131.4		121.9
Special Items:
Restructuring charges⁽²⁾	6.9		6.6			43.6		22.3
Other restructuring associated costs⁽³⁾	12.8		0.7			50.8		2.5
Foreign currency exchange loss (gain) due to highly inflationary economies	1.3		(0.4		)	3.4		(0.4		)
Charges related to the Novipax settlement agreement	—		—			59.0		—
Charges related to acquisition and divestiture activity	6.0		13.5			9.2		31.3
Gain from class-action litigation settlement	—		—			—		(12.6		)
Other Special Items⁽⁴⁾	10.1		3.7			24.8		5.6
Pre-tax impact of Special Items	37.1		24.1			190.8		48.7
Total Company Adjusted EBITDA from continuing operations	$	241.1	$	218.9		$	693.6	$	641.2


⁽¹⁾	Depreciation and amortization by segment were as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2019			2018			2019			2018
Food Care	$	30.6		$	25.6		$	81.8		$	79.8
Product Care	22.7			15.5			50.7			42.5
Total Company depreciation and amortization⁽ⁱ⁾	53.3			41.1			132.5			122.3
Depreciation and amortization adjustments	(0.1		)	(0.1		)	(1.1		)	(0.4		)
Depreciation and amortization, net of adjustments	$	53.2		$	41.0		$	131.4		$	121.9


⁽ⁱ⁾	Includes share-based incentive compensation of $12.0 million and $25.2 million for the three and nine months ended September 30, 2019, respectively, and $8.3 million and $23.6 million for the three and nine months ended September 30, 2018, respectively.


⁽ⁱⁱ⁾	Depreciation and amortization adjustments represent depreciation and amortization which is considered to be related to a Special Item and are also included in the Special Items presented in the above table.


⁽²⁾	Restructuring charges by segment were as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2019		2018		2019		2018
Food Care	$	3.9	$	2.3	$	26.3	$	8.4
Product Care	3.0		4.3		17.3		13.9
Total Company restructuring charges	$	6.9	$	6.6	$	43.6	$	22.3


⁽³⁾	Other restructuring associated costs for three and nine months ended September 30, 2019, primarily relate to fees paid to third-party consultants in support of Reinvent SEE and costs related to property consolidations resulting from Reinvent SEE.

⁽⁴⁾

Other Special Items for the three and nine months ended September 30, 2019, primarily included fees related to professional services, mainly legal fees, directly associated with Special Items or events that are considered one-time or infrequent in nature.

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.



(In millions)	September 30, 2019		December 31, 2018
Assets allocated to segments:⁽¹⁾
Food Care	$	1,941.6	$	1,914.4
Product Care	2,723.8		2,273.8
Total segments	4,665.4		4,188.2
Assets not allocated:
Cash and cash equivalents	$	200.0	$	271.7
Income tax receivables	43.1		58.4
Other receivables	79.6		81.3
Deferred taxes	175.8		170.5
Other	512.5		280.1
Total	$	5,676.4	$	5,050.2


⁽¹⁾	Beginning in 2018, the Company implemented a change in allocation of Corporate expenses, which are now allocated to Food Care and Product Care segments. At that time, the Company revised the method of allocation for some assets including property and equipment, net and goodwill, which were previously unallocated.

The assets allocated to segments as of December 31, 2018 have been revised to correct an error in the previous allocation of property and equipment, net starting in the first quarter 2018. Assets allocated to Food Care were understated by $372.9 million with an offset to Product Care of $369.6 million and $3.3 million to assets not allocated. There is no impact to consolidated assets at December 31, 2018. This error did not impact the Company's annual assessment of goodwill impairment or any other impairment considerations of long-lived assets.