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, 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 by segment, although these items are not included in the segment performance metric Adjusted EBITDA since restructuring and other charges 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:

	Three Months Ended
	March 31,
(In millions)	2016			2015
Net Sales:
Food Care	$	764.7		$	879.8
As a % of Total Company net sales		48.1	%		50.4	%
Diversey Care		441.4			467.9
As a % of Total Company net sales		27.8	%		26.8	%
Product Care⁽¹⁾		367.2			379.9
As a % of Total Company net sales		23.1	%		21.8	%
Total Reportable Segments Net Sales		1,573.3			1,727.6
Other⁽¹⁾		17.3			18.8
Total Company Net Sales	$	1,590.6		$	1,746.4

	Three Months Ended
	March 31,
(In millions)	2016			2015
Adjusted EBITDA:
Food Care	$	147.8		$	190.5
Adjusted EBITDA Margin		19.3	%		21.7	%
Diversey Care		36.3		41.1
Adjusted EBITDA Margin		8.2	%		8.8	%
Product Care⁽¹⁾	77.1			76.4
Adjusted EBITDA Margin		21.0	%		20.1	%
Total Reportable Segments Adjusted EBITDA		261.2			308.0
Other⁽¹⁾		(18.1	)		(23.8	)
Non-U.S. GAAP Total Company Adjusted EBITDA	$	243.1		$	284.2
Adjusted EBITDA Margin		15.3	%		16.3	%

⁽¹⁾	As of January 1, 2016, our Kevothermal business was moved from Other to our Product Care Segment. This resulted in a reclassification of $2.8 million of net sales and $0.8 million of adjusted EBITDA for the three months ended March 31, 2015.

The following table shows a reconciliation of Total Company Adjusted EBITDA to Net earnings available to common stockholders:

	Three Months Ended
	March 31,
(In millions)	2016			2015
Total Company Adjusted EBITDA	$	243.1		$	284.2
Depreciation and amortization⁽¹⁾		(63.5	)		(73.1	)
Special items:
Accelerated depreciation of non-strategic assets related to restructuring programs		—			0.6
Restructuring and other charges⁽²⁾		—			(12.7	)
Other restructuring associated costs included in cost of sales and selling, general and administrative expenses		(6.1	)		(8.6	)
Gain from sale of building in connection with relocation		—			3.5
SARs		(0.3	)		(2.9	)
Foreign currency exchange (loss) gains related to Venezuelan subsidiaries		(1.7	)		0.8
Loss from sale of European food trays business		(1.6	)		—
Other special items		(2.9	)		(2.0	)
Interest expense		(54.7	)		(58.5	)
Income tax provision		20.4			34.1
Net earnings available to common stockholders	$	91.9		$	97.2

⁽¹⁾	Depreciation and amortization by segment is as follows:

	Three Months Ended
	March 31,
(In millions)	2016		2015
Food Care	$	25.7	$	28.5
Diversey Care		23.0		26.1
Product Care		9.6		10.1
Total reportable segments		58.3		64.7
Other		5.2		8.4
Total Company depreciation and amortization⁽¹⁾	$	63.5	$	73.1

⁽¹⁾

Includes share-based incentive compensation of $14.4 million for the three months ended March 31, 2016 and $18.3 million for the three months ended March 31, 2015.

⁽²⁾	Restructuring and other charges by segment were as follows:

	Three Months Ended
	March 31,
(In millions)	2016		2015
Food Care	$	—	$	6.9
Diversey Care		—		3.2
Product Care		—		2.6
Total reportable segments		—		12.7
Other		—		—
Total Company restructuring and other charges	$	—	$	12.7

Assets by Reportable Segments

The following table shows assets allocated by our segment reporting structure. Only assets identifiable by segment and reviewed by our chief operating decision maker by segment are allocated by the reportable segment assets, which are trade receivables, net, and finished goods inventory, net. All other assets are included in “Assets not allocated.”

	March 31,		December 31,
(In millions)	2016		2015
Assets:
Trade receivables, net, and finished goods inventories, net
Food Care	$	555.6	$	522.4
Diversey Care		467.6		440.3
Product Care		230.1		222.0
Other		17.8		12.5
Total segments and other		1,271.1		1,197.2
Assets not allocated
Cash and cash equivalents		315.7		358.4
Property and equipment, net		954.4		930.7
Goodwill		2,929.4		2,909.5
Intangible assets, net		783.6		784.3
Assets held for sale		3.5		10.3
Other		1,281.6		1,199.6
Total	$	7,539.3	$	7,390.0