SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2019

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 16 – SEGMENT INFORMATION

We are organized into three reporting segments. Our Beauty + Home segment sells to the personal care, beauty and home care markets. Our Pharma segment serves customers in the prescription drug, consumer health care, injectables and active packaging markets. Our Food + Beverage segment sells to the food and beverage markets.

The accounting policies of the segments are the same as those described in Part II, Item 8, Note 1 - Summary of Significant Accounting Policies in our Annual Report on Form 10-K for the year ended December 31, 2018. We evaluate performance of our business units and allocate resources based upon Adjusted EBITDA. Adjusted EBITDA is defined as earnings before net interest, taxes, depreciation, amortization, unallocated corporate expenses, restructuring and acquisition-related costs. All internal segment reporting and discussions of results with our Chief Operating Decision Maker (CODM) are based on segment Adjusted EBITDA.

Financial information regarding our reporting segments is shown below:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Total Sales:
Beauty + Home	$	333,870	$	346,040	$	1,056,626	$	1,103,664
Pharma		271,608		227,691		830,679		699,105
Food + Beverage		104,458		97,297		328,280		294,362
Total Sales		709,936		671,028	$	2,215,585	$	2,097,131
Less: Intersegment Sales:
Beauty + Home	$	5,688	$	4,280	$	18,705	$	15,195
Pharma		2,357		176		6,788		254
Food + Beverage		613		797		1,693		1,949
Total Intersegment Sales	$	8,658	$	5,253	$	27,186	$	17,398
Net Sales:
Beauty + Home	$	328,182	$	341,760	$	1,037,921	$	1,088,469
Pharma		269,251		227,515		823,891		698,851
Food + Beverage		103,845		96,500		326,587		292,413
Net Sales	$	701,278	$	665,775	$	2,188,399	$	2,079,733
Adjusted EBITDA:
Beauty + Home	$	41,475	$	42,174	$	143,411	$	141,155
Pharma		96,546		84,516		295,553		250,709
Food + Beverage		18,728		15,482		56,363		46,284
Corporate & Other, unallocated		(9,943)		(7,954)		(33,328)		(28,576)
Acquisition-related costs (1)		(1,355)		(10,369)		(2,636)		(12,932)
Restructuring Initiatives (2)		(6,019)		(23,852)		(17,286)		(48,002)
Depreciation and amortization		(49,218)		(41,857)		(144,574)		(123,133)
Interest Expense		(8,898)		(8,735)		(26,868)		(24,754)
Interest Income		957		1,537		3,738		6,306
Income before Income Taxes	$	82,273	$	50,942	$	274,373	$	207,057

(1) Acquisition-related costs include transaction costs and purchase accounting adjustments related to inventory and backlog for acquisitions (see Note 18 – Acquisitions for further details).

(2) Restructuring Initiatives includes expense items for the three and nine months ended September 30, 2019 and 2018 as follows (see Note 19 – Restructuring Initiatives for further details):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Restructuring Initiatives by Segment
Beauty + Home	$	5,341	$	18,854	$	14,869	$	38,501
Pharma		168		2,008		381		3,596
Food + Beverage		204		2,638		826		4,307
Corporate & Other		306		352		1,210		1,598
Total Restructuring Initiatives	$	6,019	$	23,852	$	17,286	$	48,002