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SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2018
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. CSP Technologies’ financial results are reported in the Pharma and Food + Beverage segments. 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, |  | 2018 |  | 2017 |  | 2016 |
Total Sales: |  |  |  |  |  |  |  |  |  |
Beauty + Home |  | $ | 1,446,231 |  | $ | 1,333,048 |  | $ | 1,278,151 |
Pharma |  |  | 955,069 |  |  | 805,913 |  |  | 741,473 |
Food + Beverage |  |  | 386,689 |  |  | 352,483 |  |  | 330,231 |
Total Sales |  | $ | 2,787,989 |  | $ | 2,491,444 |  | $ | 2,349,855 |
Less: Intersegment Sales: |  |  |  |  |  |  |  |  |  |
Beauty + Home |  | $ | 19,849 |  | $ | 19,262 |  | $ | 17,065 |
Pharma |  |  | 417 |  |  | 33 |  |  | — |
Food + Beverage |  |  | 2,962 |  |  | 2,866 |  |  | 1,856 |
Total Intersegment Sales |  | $ | 23,228 |  | $ | 22,161 |  | $ | 18,921 |
Net Sales: |  |  |  |  |  |  |  |  |  |
Beauty + Home |  | $ | 1,426,382 |  | $ | 1,313,786 |  | $ | 1,261,086 |
Pharma |  |  | 954,652 |  |  | 805,880 |  |  | 741,473 |
Food + Beverage |  |  | 383,727 |  |  | 349,617 |  |  | 328,375 |
Net Sales |  | $ | 2,764,761 |  | $ | 2,469,283 |  | $ | 2,330,934 |
Adjusted EBITDA (1): |  |  |  |  |  |  |  |  |  |
Beauty + Home |  | $ | 185,926 |  | $ | 173,227 |  | $ | 186,993 |
Pharma |  |  | 343,706 |  |  | 275,933 |  |  | 259,241 |
Food + Beverage |  |  | 57,589 |  |  | 62,903 |  |  | 61,588 |
Corporate & Other, unallocated |  |  | (36,285) |  |  | (37,457) |  |  | (31,712) |
Acquisition-related costs (2) |  |  | (23,770) |  |  | — |  |  | (8,217) |
Restructuring Initiatives (3) |  |  | (63,829) |  |  | (2,208) |  |  | — |
Gain on insurance recovery (4) |  |  | — |  |  | 10,648 |  |  | — |
Depreciation and amortization |  |  | (171,747) |  |  | (153,094) |  |  | (154,802) |
Interest Expense |  |  | (32,626) |  |  | (40,597) |  |  | (35,237) |
Interest Income |  |  | 7,056 |  |  | 5,470 |  |  | 2,643 |
Income before Income Taxes |  | $ | 266,020 |  | $ | 294,825 |  | $ | 280,497 |
Depreciation and Amortization: |  |  |  |  |  |  |  |  |  |
Beauty + Home |  | $ | 83,546 |  | $ | 79,422 |  | $ | 84,273 |
Pharma |  |  | 51,495 |  |  | 41,143 |  |  | 39,776 |
Food + Beverage |  |  | 27,467 |  |  | 24,720 |  |  | 23,891 |
Corporate & Other |  |  | 9,239 |  |  | 7,809 |  |  | 6,862 |
Depreciation and Amortization |  | $ | 171,747 |  | $ | 153,094 |  | $ | 154,802 |
Capital Expenditures: |  |  |  |  |  |  |  |  |  |
Beauty + Home |  | $ | 101,371 |  | $ | 76,425 |  | $ | 75,165 |
Pharma |  |  | 54,433 |  |  | 33,005 |  |  | 58,970 |
Food + Beverage |  |  | 41,236 |  |  | 38,730 |  |  | 21,533 |
Corporate & Other |  |  | 25,739 |  |  | 18,924 |  |  | 17,490 |
Transfer of Corporate Technology Expenditures (5) |  |  | (11,527) |  |  | (10,460) |  |  | (44,172) |
Capital Expenditures |  | $ | 211,252 |  | $ | 156,624 |  | $ | 128,986 |
Total Assets: |  |  |  |  |  |  |  |  |  |
Beauty + Home |  | $ | 1,373,816 |  | $ | 1,358,283 |  | $ | 1,270,858 |
Pharma |  |  | 1,324,696 |  |  | 881,443 |  |  | 831,569 |
Food + Beverage |  |  | 501,700 |  |  | 296,271 |  |  | 259,282 |
Corporate & Other |  |  | 177,523 |  |  | 601,826 |  |  | 245,076 |
Total Assets |  | $ | 3,377,735 |  | $ | 3,137,823 |  | $ | 2,606,785 |
| (1) |  | We evaluate 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, 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, 2018 and 2017 as follows (see Note 21 – Restructuring Initiatives for further details):
Year Ended December 31, |  | 2018 |  | 2017 |
Restructuring Initiatives by Segment |  |  |  |  |  |  |
Beauty + Home |  | $ | 52,244 |  | $ | 529 |
Pharma |  |  | 3,589 |  |  | — |
Food + Beverage |  |  | 4,185 |  |  | 1,679 |
Corporate & Other |  |  | 3,811 |  |  | — |
Total Restructuring Initiatives |  | $ | 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) |  | 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, 2018, 2017 and 2016:
|  | 2018 |  | 2017 |  | 2016 |
Net Sales to Unaffiliated Customers (1): |  |  |  |  |  |  |  |  |  |
United States |  | $ | 726,336 |  | $ | 642,164 |  | $ | 619,814 |
Europe: |  |  |  |  |  |  |  |  |  |
France |  |  | 862,364 |  |  | 744,856 |  |  | 695,727 |
Germany |  |  | 474,369 |  |  | 416,802 |  |  | 386,553 |
Italy |  |  | 144,044 |  |  | 131,523 |  |  | 126,890 |
Other Europe |  |  | 146,701 |  |  | 132,992 |  |  | 120,228 |
Total Europe |  |  | 1,627,478 |  |  | 1,426,173 |  |  | 1,329,398 |
Other Foreign Countries |  |  | 410,947 |  |  | 400,946 |  |  | 381,722 |
Total |  | $ | 2,764,761 |  | $ | 2,469,283 |  | $ | 2,330,934 |
Property, Plant and Equipment |  |  |  |  |  |  |  |  |  |
United States |  | $ | 265,004 |  | $ | 182,434 |  | $ | 175,578 |
Europe: |  |  |  |  |  |  |  |  |  |
France |  |  | 308,250 |  |  | 266,804 |  |  | 228,082 |
Germany |  |  | 154,505 |  |  | 163,948 |  |  | 154,588 |
Italy |  |  | 54,978 |  |  | 57,080 |  |  | 51,732 |
Other Europe |  |  | 59,411 |  |  | 59,963 |  |  | 54,575 |
Total Europe |  |  | 577,144 |  |  | 547,795 |  |  | 488,977 |
Other Foreign Countries |  |  | 149,465 |  |  | 137,677 |  |  | 119,766 |
Total |  | $ | 991,613 |  | $ | 867,906 |  | $ | 784,321 |
| (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 2018, 2017 or 2016.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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