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Segments | 12 Months Ended
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Dec. 31, 2013
Segment Reporting [Abstract] |
Segments | Note 5 Segments Effective as of January 1, 2014, we changed our segment reporting structure in order to reflect the way management now makes operating decisions and manages the growth and profitability of the business. This change corresponds with management’s current approach of allocating costs and resources and assessing the performance of our segments. We report our segment information in accordance with the provisions of Financial Accounting Standards Board Accounting Standards Codification Topic 280, “Segment Reporting,” (“FASB ASC Topic 280”). There has been no change in our total consolidated financial condition or results of operations previously reported as a result of the change in our segment structure. There were no changes to the reportable segment assets as a result of the change in segment reporting. As a result, the Company’s new segment reporting structure consists of three reportable segments and an “Other” category and is as follows:
| • |  | Food Care;
| • |  | Diversey Care;
| • |  | Product Care; and
| • |  | Other (includes Corporate, Medical Applications and New Ventures businesses)
The Company’s Food Care, Diversey Care and Product Care segments are considered reportable segments under FASB ASC Topic 280. Our reportable segments are aligned with similar groups of products. Other includes Corporate and the Medical Applications and New Ventures businesses. The Medical Applications and New Ventures businesses were previously included in the Company’s “Other Category.” Other includes certain costs that are not allocated to the reportable segments, primarily consisting of unallocated corporate overhead costs, including administrative functions and cost recovery variances not allocated to the reportable segments from global functional expenses. Other also includes all items the Company categorizes as special or unusual items that are reported on the condensed consolidated statements of operations. These special items primarily consist of restructuring and other associated costs, expenses related to stock appreciation rights (“SARs”), which were issued in connection with the acquisition of Diversey in 2011, loss on debt redemptions and foreign currency exchange gains/losses related to Venezuelan subsidiaries. As of January 1, 2014, the Company also changed the segment performance measure in which the chief operating decision maker (“CODM”), the Company’s Chief Executive Officer, assesses segment performance and makes allocation decisions by segment from operating profit (a U.S. GAAP financial measure) to Adjusted EBITDA (a non-U.S. GAAP financial measure). Adjusted EBITDA is defined as Earnings before Interest Expense, Taxes, Depreciation and Amortization, adjusted to exclude the impact of special items. See “Use of Non-U.S. GAAP Information” above for further information of our use of non-U.S. GAAP measures. We allocate and disclose depreciation and amortization expense to our segments, although property and equipment, net is not allocated to the segment assets, nor is depreciation and amortization included in the segment performance metric Adjusted EBITDA. We also disclose restructuring and other charges and impairment of goodwill and other intangible assets by segment, although these items are not included in the segment performance metric Adjusted EBITDA since restructuring and other charges and impairment of goodwill and other intangible assets are categorized as special items as discussed above. The accounting policies of the reportable segments and Other are the same as those applied to the condensed consolidated financial statements. The changes in the Company’s segment structure and segment performance measure better provides the CODM with information to assess segment performance and to make resource and allocation decisions, as the new segment structure and performance measure reflect the current management of our businesses. Accordingly, the new measure will also assist our investors by providing them with a better understanding of the segment so that the user can make a more informed decision about the Company, which is consistent with FASB ASC Topic 280. The following tables show net sales and Adjusted EBITDA by our segment reporting structure:
|  | 2013 |  |  | 2012 |  |  | 2011 |
Net sales |  |  |  |  |  |  |  |
Food Care |  | $ | 3,814.2 |  |  | $ | 3,744.0 |  |  | $ | 3,242.3 |
Diversey Care |  |  | 2,160.8 |  |  |  | 2,131.9 |  |  |  | 534.6 |
Product Care |  |  | 1,610.0 |  |  |  | 1,580.4 |  |  |  | 1,595.0 |
Total reportable segments |  |  | 7,585.0 |  |  |  | 7,456.3 |  |  |  | 5,371.9 |
Other |  |  | 105.8 |  |  |  | 102.9 |  |  |  | 95.4 |
Total |  | $ | 7,690.8 |  |  | $ | 7,559.2 |  |  | $ | 5,467.3 |
Adjusted EBITDA |  |  |  |  |  |  |  |
Food Care |  | $ | 613.9 |  |  | $ | 577.7 |  |  | $ | 532.3 |
Adjusted EBITDA margin |  |  | 16.1 | % |  |  | 15.4 | % |  |  | 16.4 | %
Diversey Care |  |  | 237.3 |  |  |  | 217.9 |  |  |  | 39.8 |
Adjusted EBITDA margin |  |  | 11.0 | % |  |  | 10.2 | % |  |  | 7.4 | %
Product Care |  |  | 264.5 |  |  |  | 267.4 |  |  |  | 263.1 |
Adjusted EBITDA margin |  |  | 16.4 | % |  |  | 16.9 | % |  |  | 16.5 | %
Total reportable segments Adjusted EBITDA |  | $ | 1,115.7 |  |  | $ | 1,063.0 |  |  | $ | 835.2 |
Adjusted EBITDA margin |  |  | 14.7 | % |  |  | 14.3 | % |  |  | 15.5 | %
Other |  |  | (77.7 | ) |  |  | (82.3 | ) |  |  | (79.3 | )
Adjusted EBITDA margin |  |  | (73.4 | )% |  |  | (80.0 | )% |  |  | (83.1 | )%
Total Company Adjusted EBITDA |  | $ | 1,038.0 |  |  | $ | 980.7 |  |  | $ | 755.9 |
Adjusted EBITDA margin |  |  | 13.5 | % |  |  | 13.0 | % |  |  | 13.8 | %
The following table shows a reconciliation of Non-U.S. GAAP Total Company Adjusted EBITDA to U.S. GAAP net earnings from continuing operations:
|  | 2013 |  |  | 2012 |  |  | 2011 |
Non-U.S. GAAP Total Company Adjusted EBITDA |  | $ | 1,038.0 |  |  | $ | 980.7 |  |  | $ | 755.9 |
Depreciation and amortization(1) |  |  | (307.5 | ) |  |  | (317.1 | ) |  |  | (208.3 | )
Special items(2): |  |  |  |  |  |  |  |
Write-down of non-strategic assets included in depreciation and amortization(2) |  |  | 5.3 |  |  |  | 0.8 |  |  |  | — |
Impairment of goodwill and other intangible assets(3) |  |  | — |  |  |  | (1,892.3 | ) |  |  | — |
Restructuring and other charges(4) |  |  | (73.8 | ) |  |  | (142.5 | ) |  |  | (52.2 | )
Other restructuring associated costs included in cost of sales and selling general and administrative expenses |  |  | (32.0 | ) |  |  | (38.9 | ) |  |  | (3.9 | )
SARs |  |  | (38.1 | ) |  |  | (18.4 | ) |  |  | — |
Costs related to the acquisition and integration of Diversey |  |  | (1.1 | ) |  |  | (7.4 | ) |  |  | (64.8 | )
Impairment of equity method investment in 2013 and 2012 including related bad debt write-down of $2.3 million in 2012 |  |  | (2.1 | ) |  |  | (25.8 | ) |  |  | — |
Foreign currency exchange losses related to Venezuelan subsidiaries |  |  | (13.1 | ) |  |  | (0.4 | ) |  |  | (0.3 | )
Loss on debt redemption |  |  | (36.3 | ) |  |  | (36.9 | ) |  |  | — |
Settlement agreement related costs |  |  | (1.0 | ) |  |  | (0.7 | ) |  |  | (0.9 | )
Additional cost of sales for the step-up in inventories, net related to the Diversey acquisition in 2011 |  |  | — |  |  |  | — |  |  |  | (10.8 | )
Legacy Diversey non-recurring charges in 2011 |  |  | — |  |  |  | — |  |  |  | (12.6 | )
Gain on sale of facility in 2011 |  |  | — |  |  |  | — |  |  |  | 3.9 |
Other expense, net |  |  | 0.4 |  |  |  | 1.0 |  |  |  | — |
Interest expense |  |  | (361.0 | ) |  |  | (384.7 | ) |  |  | (216.6 | )
Income tax provision (benefit) |  |  | 84.0 |  |  |  | (264.7 | ) |  |  | 56.7 |
U.S. GAAP net earnings (loss) from continuing operations |  | $ | 93.7 |  |  | $ | (1,617.9 | ) |  | $ | 132.7 |
(1) | Depreciation and amortization by segment is as follows:
|  | 2013 |  |  | 2012 |  |  | 2011 |
Food Care |  | $ | 118.4 |  |  | $ | 140.0 |  |  | $ | 113.7 |
Diversey Care |  |  | 132.3 |  |  |  | 127.6 |  |  |  | 34.7 |
Product Care |  |  | 38.2 |  |  |  | 37.9 |  |  |  | 40.9 |
Total reportable segments |  |  | 288.9 |  |  |  | 305.5 |  |  |  | 189.3 |
Other (includes write-down of non-strategic assets) |  |  | 18.6 |  |  |  | 11.6 |  |  |  | 19.0 |
Total Company |  | $ | 307.5 |  |  | $ | 317.1 |  |  | $ | 208.3 |
(2) | Includes items the Company considers unusual or special items. See “Non-U.S. GAAP information” above for further information.
(3) | Impairment of goodwill and other intangible assets in 2012 by our segment reporting structure was as follows:
|  | 2012 |
Food Care |  | $ | 543.4 |
Diversey Care |  |  | 1,326.7 |
Product Care |  |  | — |
Other |  |  | 22.2 |
Total |  | $ | 1,892.3 |
See Note 8, “Goodwill and Identifiable Intangible Assets” for a discussion of the facts and circumstance that led to this impairment in 2012.
(4) | Restructuring and other charges by our segment reporting structure were as follows:
|  | 2013 |  |  | 2012 |  |  | 2011 |
Food Care |  | $ | 25.1 |  |  | $ | 72.0 |  |  | $ | 13.1 |
Diversey Care |  |  | 32.2 |  |  |  | 53.1 |  |  |  | 39.5 |
Product Care |  |  | 16.4 |  |  |  | 16.7 |  |  |  | (0.4 | )
Other |  |  | 0.1 |  |  |  | 0.7 |  |  |  | — |
Total |  | $ | 73.8 |  |  | $ | 142.5 |  |  | $ | 52.2 |
The restructuring and other charges in 2013 primarily relate to our previously announced Earnings Quality Improvement Program (EQIP). The restructuring and other charges in 2012 and 2011 primarily relate to the Integration and Optimization Program (IOP). See Note 10, “Restructuring Activities,” for further discussion. Assets by Reportable Segments The following table shows assets allocated by our segment reporting structure. Only assets which are identifiable by segment and reviewed by our chief operating decision maker by segment are allocated to the reportable segment assets, which are trade receivables, net, and finished goods inventories, net. All other assets are included in “Assets not allocated.”
|  | December 31, 2013 |  |  | December 31, 2012 |
Assets: |  |  |  |  |  |  |  |
Trade receivables, net, and finished goods inventories, net |  |  |  |  |  |  |  |
Food Care |  | $ | 768.5 |  |  | $ | 811.9 |
Diversey Care |  |  | 543.0 |  |  |  | 587.8 |
Product Care |  |  | 310.1 |  |  |  | 331.3 |
Other |  |  | 19.3 |  |  |  | 22.0 |
Total segments and other |  |  | 1,640.9 |  |  |  | 1,753.0 |
Assets not allocated |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  | 992.4 |  |  |  | 679.6 |
Property and equipment, net |  |  | 1,134.5 |  |  |  | 1,194.2 |
Goodwill |  |  | 3,114.6 |  |  |  | 3,151.2 |
Intangibles, net |  |  | 1,016.9 |  |  |  | 1,131.6 |
Assets held for sale |  |  | — |  |  |  | 87.3 |
Other assets |  |  | 1,234.9 |  |  |  | 1,334.8 |
Total |  | $ | 9,134.2 |  |  | $ | 9,331.7 |
Allocation of Goodwill and Identifiable Intangible Assets to Reportable Segments Our management views goodwill and identifiable intangible assets as corporate assets, so we do not allocate their balances to the reportable segments. However, we are required to allocate their balances to each reporting unit to perform our annual impairment review, which we do during the fourth quarter of the year. See Note 8, “Goodwill and Identifiable Intangible Assets,” for the allocation of goodwill and identifiable intangible assets and the changes in their balances in the year ended December 31, 2013 by our segment reporting structure, and the details of our impairment review. Geographic Information
|  | 2013 |  |  | 2012 |  |  | 2011 |
Net sales(1): |  |  |  |  |  |  |  |  |  |  |  |
United States |  |  | 2,729.7 |  |  |  | 2,684.7 |  |  |  | 2,279.6 |
Canada |  |  | 277.2 |  |  |  | 267.7 |  |  |  | 172.6 |
Europe |  |  | 2,447.8 |  |  |  | 2,416.5 |  |  |  | 1,581.9 |
Latin America |  |  | 824.3 |  |  |  | 799.7 |  |  |  | 545.7 |
AMAT |  |  | 846.8 |  |  |  | 794.4 |  |  |  | 346.0 |
JANZ |  |  | 565.0 |  |  |  | 596.2 |  |  |  | 541.5 |
Total |  |  | 7,690.8 |  |  |  | 7,559.2 |  |  |  | 5,467.3 |
Total long-lived assets(1)(2): |  |  |  |  |  |  |  |  |  |  |  |
United States |  |  | 2,918.0 |  |  |  | 2,985.0 |  |  |  | 4,536.3 |
Canada |  |  | 93.0 |  |  |  | 105.8 |  |  |  | 48.0 |
Europe |  |  | 1,591.5 |  |  |  | 1,643.2 |  |  |  | 1,945.3 |
Latin America |  |  | 233.6 |  |  |  | 259.8 |  |  |  | 385.4 |
AMAT |  |  | 650.0 |  |  |  | 699.8 |  |  |  | 815.8 |
JANZ |  |  | 167.3 |  |  |  | 198.5 |  |  |  | 169.9 |
Total |  |  | 5,653.4 |  |  |  | 5,892.1 |  |  |  | 7,900.7 |
(1) | Net sales attributed to the geographic areas represent net sales to external customers. No non-U.S. country had net sales in excess of 10% of consolidated net sales or long-lived assets in excess of 10% of consolidated long-lived assets at December 31, 2013 and 2012.
(2) | Total long-lived assets are total assets excluding total current assets and deferred tax assets.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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