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SEGMENT INFORMATION
12 Months Ended
Dec. 31, 2019
SEGMENT INFORMATION  
SEGMENT INFORMATION

NOTE 18 SEGMENT INFORMATION

We are organized into three reporting segments. Operations that sell dispensing systems and sealing solutions primarily to the beauty, personal care and home care markets form the Beauty + Home segment. Operations that sell dispensing systems and sealing solutions to the prescription drug, consumer health care, injectables and active packaging markets form the Pharma segment. Operations that sell dispensing systems and sealing solutions 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 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 our reporting segments is shown below:

Year Ended December 31,

2019

    

2018

    

2017

    

Total Sales:

Beauty + Home

$

1,376,027

$

1,446,231

$

1,333,048

Pharma

 

1,100,463

 

955,069

 

805,913

Food + Beverage

 

418,017

 

386,689

 

352,483

Total Sales

$

2,894,507

$

2,787,989

$

2,491,444

Less: Intersegment Sales:

Beauty + Home

$

23,313

$

19,849

$

19,262

Pharma

 

9,412

 

417

 

33

Food + Beverage

 

2,050

 

2,962

 

2,866

Total Intersegment Sales

$

34,775

$

23,228

$

22,161

Net Sales:

Beauty + Home

$

1,352,714

$

1,426,382

$

1,313,786

Pharma

 

1,091,051

 

954,652

 

805,880

Food + Beverage

 

415,967

 

383,727

 

349,617

Net Sales

$

2,859,732

$

2,764,761

$

2,469,283

Adjusted EBITDA (1):

Beauty + Home

$

181,150

$

185,926

$

173,227

Pharma

 

387,483

 

343,706

 

275,933

Food + Beverage

 

68,108

 

57,589

 

62,903

Corporate & Other, unallocated

 

(44,406)

 

(36,285)

 

(37,457)

Acquisition-related costs (2)

(3,927)

(23,770)

Restructuring Initiatives (3)

 

(20,472)

 

(63,829)

 

(2,208)

Gain on insurance recovery (4)

10,648

Depreciation and amortization (5)

(194,552)

(171,747)

(153,094)

Interest Expense

(35,489)

(32,626)

(40,597)

Interest Income

 

4,174

 

7,056

 

5,470

Income before Income Taxes

$

342,069

$

266,020

$

294,825

Depreciation and Amortization:

Beauty + Home

$

82,778

$

83,546

$

79,422

Pharma

 

65,590

 

51,495

 

41,143

Food + Beverage

 

35,728

 

27,467

 

24,720

Corporate & Other

 

10,456

 

9,239

 

7,809

Depreciation and Amortization

$

194,552

$

171,747

$

153,094

Capital Expenditures:

Beauty + Home

$

96,040

$

101,371

$

76,425

Pharma

 

89,702

 

54,433

 

33,005

Food + Beverage

 

45,130

 

41,236

 

38,730

Corporate & Other

 

13,933

 

25,739

 

18,924

Transfer of Corporate Technology Expenditures (6)

(2,529)

(11,527)

(10,460)

Capital Expenditures

$

242,276

$

211,252

$

156,624

Total Assets:

Beauty + Home

$

1,378,292

$

1,373,816

$

1,358,283

Pharma

 

1,422,815

 

1,324,696

 

881,443

Food + Beverage

 

534,527

 

501,700

 

296,271

Corporate & Other

 

226,485

 

177,523

 

601,826

Total Assets

$

3,562,119

$

3,377,735

$

3,137,823

(1)We evaluate performance of our reporting segments and allocate resources based upon Adjusted EBITDA. Adjusted EBITDA is defined as earnings before net interest, taxes, depreciation, amortization, unallocated corporate expenses, restructuring, acquisition-related costs and insurance recoveries.
(2)Acquisition-related costs include transaction costs and purchase accounting adjustments related to inventory for acquisitions (see Note 20 – Acquisitions for further details).
(3)Restructuring Initiatives includes expense items for the years ended December 31, 2019 and 2018 as follows (see Note 21 – Restructuring Initiatives for further details):

Year Ended December 31,

    

2019

    

2018

    

2017

    

Restructuring Initiatives by Segment

Beauty + Home

$

17,682

$

52,244

$

529

Pharma

 

632

 

3,589

 

Food + Beverage

 

391

 

4,185

 

1,679

Corporate & Other

1,767

3,811

Total Restructuring Initiatives

$

20,472

$

63,829

$

2,208

(4)The gain on insurance recovery relates to the Annecy fire (see Note 19 – Insurance Settlement Receivable for further details).
(5)Depreciation and amortization includes amortization related to acquisition purchase accounting adjustments for backlog.  See the reconciliation of Non-U.S. GAAP measures starting on page 22.
(6)The transfer of corporate technology expenditures represents amounts of projects managed by corporate for the benefit of specific entities within each segment. Once the projects are complete, all related costs are allocated from corporate to and paid by the appropriate entity and the associated assets are then depreciated at the entity level.

Geographic Information

The following are net sales and long-lived asset information by geographic area and product information for the years ended December 31, 2019, 2018 and 2017:

    

2019

    

2018

    

2017

 

Net Sales to Unaffiliated Customers (1):

United States

$

836,768

$

726,336

$

642,164

Europe:

France

 

895,110

862,364

744,856

Germany

 

452,409

474,369

416,802

Italy

 

141,867

144,044

131,523

Other Europe

 

149,083

146,701

132,992

Total Europe

 

1,638,469

1,627,478

1,426,173

Other Foreign Countries

 

384,495

410,947

400,946

Total

$

2,859,732

$

2,764,761

$

2,469,283

Property, Plant and Equipment

United States

$

300,820

$

265,004

$

182,434

Europe:

France

 

338,288

308,250

266,804

Germany

 

163,782

154,505

163,948

Italy

 

53,562

54,978

57,080

Other Europe

 

63,636

59,411

59,963

Total Europe

 

619,268

577,144

547,795

Other Foreign Countries

 

167,590

149,465

137,677

Total

$

1,087,678

$

991,613

$

867,906

(1)Sales are attributed to countries based upon where the sales invoice to unaffiliated customers is generated.

No single customer represents 6% or more of our net sales in 2019, 2018 or 2017.