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Segments | 12 Months Ended
--- | ---
Dec. 31, 2015
Segment Reporting [Abstract] |
Segments | Note 4 Segments The Company’s 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. Other includes certain costs that are not allocated to the reportable segments, as applicable, primarily consisting of unallocated corporate overhead costs, including administrative functions and cost recovery variances not allocated to the reportable segments from global functional expenses. 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 outlined in the table reconciling Non-U.S. GAAP Total Company Adjusted EBITDA to U.S. GAAP net earnings from continuing operations set forth below. The accounting policies of the reportable segments and Other are the same as those applied to the Consolidated Financial Statements. The following tables show net sales and Adjusted EBITDA by our segment reporting structure:
|  | Year Ended December 31, |
(In millions) |  | 2015 |  |  | 2014 |  |  | 2013 |
Net Sales: |  |  |  |  |  |  |  |  |  |  |  |
Food Care |  | $ | 3,405.1 |  |  | $ | 3,835.3 |  |  | $ | 3,814.2 |
As a % of Total Company net sales |  |  | 48.4 | % |  |  | 49.5 | % |  |  | 49.6 | %
Diversey Care |  |  | 1,999.1 |  |  |  | 2,173.1 |  |  |  | 2,160.8 |
As a % of Total Company net sales |  |  | 28.4 | % |  |  | 28.0 | % |  |  | 28.1 | %
Product Care |  |  | 1,540.5 |  |  |  | 1,655.0 |  |  |  | 1,610.0 |
As a % of Total Company net sales |  |  | 21.9 | % |  |  | 21.4 | % |  |  | 20.9 | %
Total Reportable Segments Net Sales |  |  | 6,944.7 |  |  |  | 7,663.4 |  |  |  | 7,585.0 |
Other |  |  | 86.8 |  |  | 87.1 |  |  |  | 105.8 |
Total Company Net Sales |  | $ | 7,031.5 |  |  | $ | 7,750.5 |  |  | $ | 7,690.8 |
|  | Year Ended December 31, |
(In millions) |  | 2015 |  |  | 2014 |  |  | 2013 |
Adjusted EBITDA: |  |  |  |  |  |  |  |  |  |  |  |
Food Care |  | $ | 689.8 |  |  | $ | 670.2 |  |  | $ | 614.7 |
Adjusted EBITDA Margin |  |  | 20.3 | % |  |  | 17.5 | % |  |  | 16.1 | %
Diversey Care |  | 231.9 |  |  |  | 245.0 |  |  | 237.3 |
Adjusted EBITDA Margin |  |  | 11.6 | % |  |  | 11.3 | % |  |  | 11.0 | %
Product Care |  |  | 321.0 |  |  | 292.7 |  |  | 266.3 |
Adjusted EBITDA Margin |  |  | 20.8 | % |  |  | 17.7 | % |  |  | 16.5 | %
Total Reportable Segments Adjusted EBITDA |  |  | 1,242.7 |  |  |  | 1,207.9 |  |  |  | 1,118.3 |
Other |  |  | (68.6 | ) |  |  | (89.6 | ) |  |  | (77.8 | )
Non-U.S. GAAP Total Company Adjusted EBITDA |  | $ | 1,174.1 |  |  | $ | 1,118.3 |  |  | $ | 1,040.5 |
Adjusted EBITDA Margin |  |  | 16.7 | % |  |  | 14.4 | % |  |  | 13.5 | %
The following table shows a reconciliation of Non-U.S. GAAP Total Company Adjusted EBITDA to U.S. GAAP net earnings from continuing operations:
|  | Year Ended December 31, |
(In millions) |  | 2015 |  |  | 2014 |  |  | 2013 |
Total Company Adjusted EBITDA |  | $ | 1,174.1 |  |  | $ | 1,118.3 |  |  | $ | 1,040.5 |
Depreciation and amortization (1) |  |  | (274.5 | ) |  |  | (320.8 | ) |  |  | (307.5 | )
Special items: |  |  |  |  |  |  |  |  |  |  |  |
Accelerated depreciation of non-strategic assets related to restructuring programs |  |  | 0.2 |  |  |  | 2.1 |  |  |  | 5.3 |
Restructuring and other charges(2) |  |  | (78.3 | ) |  |  | (65.7 | ) |  |  | (73.8 | )
Other restructuring associated costs included in cost of sales and selling, general and administrative expenses |  |  | (42.9 | ) |  |  | (35.8 | ) |  |  | (26.6 | )
Development grant matter included in selling, general and administrative expenses |  |  | — |  |  |  | (14.0 | ) |  |  | — |
Termination of licensing agreement |  |  | — |  |  |  | (5.3 | ) |  |  | — |
SARs |  |  | (3.9 | ) |  |  | (8.1 | ) |  |  | (38.1 | )
Impairments of equity method investment |  |  | — |  |  |  | (5.7 | ) |  |  | (2.1 | )
Foreign currency exchange (loss) gains related to Venezuelan subsidiaries |  |  | (33.1 | ) |  |  | (20.4 | ) |  |  | (13.1 | )
Loss on debt redemption and refinancing activities |  |  | (110.0 | ) |  |  | (102.5 | ) |  |  | (36.3 | )
Gain (loss) from Claims Settlement in 2014 and related costs |  |  | — |  |  |  | 21.1 |  |  |  | (1.0 | )
Gain, net, on sale of North American foam trays and absorbent pads business and European food trays business |  |  | 13.4 |  |  |  | — |  |  |  | — |
Non-operating charge for contingent guarantee included in other income (expense), net |  |  | — |  |  |  | (2.5 | ) |  |  | — |
Other special items |  |  | 8.6 |  |  |  | (5.8 | ) |  |  | (6.1 | )
Interest expense |  |  | (227.7 | ) |  |  | (287.7 | ) |  |  | (361.0 | )
Income tax provision |  |  | 90.5 |  |  |  | 9.1 |  |  |  | 84.9 |
Net earnings from continuing operations |  | $ | 335.4 |  |  | $ | 258.1 |  |  | $ | 95.3 |
(1) | Depreciation and amortization by segment is as follows:
|  | Year Ended December 31, |
(In millions) |  | 2015 |  |  | 2014 |  |  | 2013 |
Food Care |  | $ | 107.9 |  |  | $ | 121.3 |  |  | $ | 118.4 |
Diversey Care |  |  | 105.5 |  |  |  | 126.3 |  |  |  | 132.3 |
Product Care |  |  | 37.4 |  |  |  | 41.4 |  |  |  | 38.2 |
Total reportable segments |  |  | 250.8 |  |  |  | 289.0 |  |  |  | 288.9 |
Other |  |  | 23.7 |  |  |  | 31.8 |  |  |  | 18.6 |
Total Company depreciation and amortization(1) |  | $ | 274.5 |  |  | $ | 320.8 |  |  | $ | 307.5 |
(1) | Includes share-based incentive compensation of $61.2 million in 2015, $54.1 million in 2014, and $24.1 million in 2013.
(2) | Restructuring and other charges by segment were as follows:
|  | Year Ended December 31, |
(In millions) |  | 2015 |  |  | 2014 |  |  | 2013 |
Food Care |  | $ | 37.9 |  |  | $ | 27.3 |  |  | $ | 25.1 |
Diversey Care |  |  | 22.2 |  |  |  | 24.3 |  |  |  | 32.2 |
Product Care |  |  | 17.2 |  |  |  | 13.6 |  |  |  | 16.4 |
Total reportable segments |  |  | 77.3 |  |  |  | 65.2 |  |  |  | 73.7 |
Other |  |  | 1.0 |  |  |  | 0.5 |  |  |  | 0.1 |
Total Company restructuring and other charges |  | $ | 78.3 |  |  | $ | 65.7 |  |  | $ | 73.8 |
The restructuring and other charges in 2015 primarily relate to our previously announced Fusion program. The restructuring and other charges in 2014 and 2013 primarily relate to our previously announced Earnings Quality Improvement Program (EQIP). See Note 9, “Restructuring and Relocation 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, |  |  | December 31, |
(In millions) |  | 2015 |  |  | 2014 |
Assets: |  |  |  |  |  |  |  |
Trade receivables, net, and finished goods inventories, net |  |  |  |  |  |  |  |
Food Care |  | $ | 522.4 |  |  | $ | 678.2 |
Diversey Care |  |  | 440.3 |  |  |  | 514.5 |
Product Care |  |  | 219.6 |  |  |  | 279.1 |
Other |  |  | 14.8 |  |  |  | 14.0 |
Total segments and other |  |  | 1,197.1 |  |  |  | 1,485.8 |
Assets not allocated |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  | 358.4 |  |  |  | 286.4 |
Property and equipment, net |  |  | 930.7 |  |  |  | 943.0 |
Goodwill |  |  | 2,909.5 |  |  |  | 2,996.9 |
Intangible assets, net |  |  | 784.3 |  |  |  | 872.2 |
Assets held for sale |  |  | 10.3 |  |  |  | 106.4 |
Other |  |  | 1,235.7 |  |  |  | 1,262.5 |
Total |  | $ | 7,426.0 |  |  | $ | 7,953.2 |
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 using a measurement date of October 1st. See Note 7, “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, 2015 by our segment reporting structure, and the details of our impairment review. Geographic Information
|  | Year Ended December 31, |
(In millions) |  | 2015 |  |  | 2014 |  |  | 2013 |
Net sales(1): |  |  |  |  |  |  |  |  |  |  |  |
North America(4) |  | $ | 2,923.2 |  |  | $ | 3,071.9 |  |  | $ | 3,004.9 |
EMEA(3) |  |  | 2,410.4 |  |  |  | 2,783.2 |  |  |  | 2,770.7 |
Latin America |  |  | 695.8 |  |  |  | 807.5 |  |  |  | 840.7 |
APAC(3) |  |  | 1,002.1 |  |  |  | 1,087.9 |  |  |  | 1,074.5 |
Total |  | $ | 7,031.5 |  |  | $ | 7,750.5 |  |  | $ | 7,690.8 |
Total long-lived assets(1)(2): |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 616.5 |  |  | $ | 542.5 |  |  |  |  |
EMEA(3) |  |  | 377.3 |  |  |  | 413.2 |  |  |  |  |
Latin America |  |  | 127.0 |  |  |  | 143.6 |  |  |  |  |
APAC(3) |  |  | 191.1 |  |  |  | 216.8 |  |  |  |  |
Total |  | $ | 1,311.9 |  |  | $ | 1,316.1 |  |  |  |  |
(1) | Net sales to external customers attributed to geographic areas represent net sales to external customers based on destination. No non-U.S. country accounted for net sales in excess of 10% of consolidated net sales for the years ended December 31, 2015, 2014, or 2013 or long-lived assets in excess of 10% of consolidated long-lived assets at December 31, 2015 and 2014.
(2) | Total long-lived assets represent total assets excluding total current assets, deferred tax assets, goodwill and intangible assets.
(3) | As previously announced, the Company underwent a reorganization of its AMAT region. This reorganization involved transitioning the previously reported AMAT region to an Asia Pacific (APAC) region, which now includes Asia, Australia, New Zealand and moving the Middle East, Africa and Turkey countries into the Company’s existing European regional organization, now referred to as EMEA. This took effect beginning in the second quarter of 2015.
(4) | Net sales to external customers within the U.S. were $2,685.3 million for the year ended December 31, 2015, $2,797.5 million for the year ended December 31, 2014 and $2,724.5 million for the year ended December 31, 2013.

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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 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: 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=51669610&loc=d3e9038-108599 Reference 3: 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=51669610&loc=d3e8971-108599 Reference 4: 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=51669610&loc=d3e8595-108599 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=51669610&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 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: 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=51669610&loc=d3e8844-108599 Reference 8: 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=51669610&loc=d3e8984-108599 Reference 9: 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=51669610&loc=d3e9031-108599 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=51669610&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 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: 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=51669610&loc=d3e8864-108599 Reference 13: 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=51669610&loc=d3e8924-108599 Reference 14: 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=51669610&loc=d3e8906-108599 + Details
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