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 June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Total Sales:
Beauty + Home	$	374,161	$	327,475	$	757,624	$	654,408
Pharma		241,282		201,703		471,414		398,617
Food + Beverage		101,420		94,958		197,065		177,307
Total Sales		716,863		624,136		1,426,103		1,230,332
Less: Intersegment Sales:
Beauty + Home	$	5,625	$	5,358	$	10,915	$	9,843
Pharma		73		1		78		3
Food + Beverage		557		1,031		1,152		1,424
Total Intersegment Sales	$	6,255	$	6,390	$	12,145	$	11,270
Net Sales:
Beauty + Home	$	368,536	$	322,117	$	746,709	$	644,565
Pharma		241,209		201,702		471,336		398,614
Food + Beverage		100,863		93,927		195,913		175,883
Net Sales	$	710,608	$	617,746	$	1,413,958	$	1,219,062
Adjusted EBITDA (1):
Beauty + Home	$	45,846	$	44,550	$	98,981	$	86,638
Pharma		86,353		69,649		166,193		138,490
Food + Beverage		18,063		18,694		30,802		31,640
Corporate & Other, unallocated		(9,043)		(9,014)		(20,622)		(18,146)
Acquisition related costs (2)		(2,563)		—		(2,563)		—
Restructuring Initiatives (3)		(18,214)		—		(24,150)		—
Depreciation and amortization		(40,101)		(37,242)		(81,276)		(74,573)
Interest Expense		(7,964)		(7,712)		(16,019)		(15,974)
Interest Income		2,521		643		4,769		973
Income before Income Taxes	$	74,898	$	79,568	$	156,115	$	149,048

(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, taxes, depreciation, amortization, unallocated corporate expenses, restructuring and transaction costs.

(2)

Acquisition-related costs include transaction costs and purchase accounting adjustments related to inventory for acquisitions (see Note 17 – Acquisitions for further details).

(3)

Restructuring Initiatives includes expense items for the three and six months ended June 30, 2018 as follows (see Note 18 – Restructuring Initiatives for further details):


	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Business Transformation
Employee Severance and Other Costs	$	18,214	$	—	$	24,150	$	—
Total Restructuring Initiatives	$	18,214	$	—	$	24,150	$	—
Restructuring Initiatives by Segment
Beauty + Home	$	14,631	$	—	$	19,647	$	—
Pharma		1,224		—		1,588		—
Food + Beverage		1,354		—		1,669		—
Corporate & Other		1,005		—		1,246		—
Total Restructuring Initiatives	$	18,214	$	—	$	24,150	$	—