NOTE 15 – SEGMENT INFORMATION

The Company is organized into three reporting segments. Operations that sell dispensing systems and sealing solutions primarily to the personal care, beauty and home care markets form the Beauty + Home segment. Operations that sell dispensing systems and sealing solutions primarily to the prescription drug, consumer health care and injectables markets form the Pharma segment. Operations that sell dispensing systems and sealing solutions primarily to the food and beverage markets form the Food + Beverage segment. The accounting policies of the segments are the same as those described in Note 1 - Summary of Significant Accounting Policies, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. In order to more closely align with how the markets analyze our segment results, we have changed our non-U.S.GAAP segment measure of profitability from Segment Income to Adjusted EBITDA beginning in 2018. All internal segment reporting and discussions of results with our Chief Operating Decision Maker (CODM) are now based on segment Adjusted EBITDA. All references to segment profitability have been updated for this change.

Financial information regarding the Company’s reporting segments is shown below:


Three Months Ended March 31,	2018		2017
Total Sales:
Beauty + Home	$	383,463	$	326,933
Pharma		230,132		196,914
Food + Beverage		95,645		82,349
Total Sales		709,240		606,196
Less: Intersegment Sales:
Beauty + Home	$	5,290	$	4,485
Pharma		5		2
Food + Beverage		595		393
Total Intersegment Sales	$	5,890	$	4,880
Net Sales:
Beauty + Home	$	378,173	$	322,448
Pharma		230,127		196,912
Food + Beverage		95,050		81,956
Net Sales	$	703,350	$	601,316
Adjusted EBITDA (1):
Beauty + Home	$	53,135	$	42,088
Pharma		79,840		68,841
Food + Beverage		12,739		12,946
Corporate & Other, unallocated		(11,579)		(9,132)
Restructuring Initiatives (2)		(5,936)		—
Depreciation and amortization		(41,175)		(37,331)
Interest Expense		(8,055)		(8,262)
Interest Income		2,248		330
Income before Income Taxes	$	81,217	$	69,480

(1)

The Company evaluates performance of our business units and allocates resources based upon Adjusted EBITDA. Adjusted EBITDA is defined as earnings before net interest expense, depreciation and amortization, unallocated corporate expenses, restructuring initiatives and income taxes.

(2)

Restructuring Initiatives includes expense items for the three months ended March 31, 2018 as follows (see Note 18 – Restructuring Initiatives for further details):


Three Months Ended March 31,	2018
Business Transformation
Employee Severance and Other Costs	$	5,936
Total Restructuring Initiatives	$	5,936
Restructuring Initiatives by Segment
Beauty + Home	$	5,016
Pharma		364
Food + Beverage		315
Corporate & Other		241
Total Restructuring Initiatives	$	5,936