XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Segments | 6 Months Ended
--- | ---
Jun. 30, 2016
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, 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 Condensed Consolidated Financial Statements. The following tables show Net Sales and Adjusted EBITDA by our segment reporting structure:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
(In millions) |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Net Sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Food Care |  | $ | 802.3 |  |  | $ | 846.6 |  |  | $ | 1,567.0 |  |  | $ | 1,726.4 |
As a % of Total Company net sales |  |  | 46.5 | % |  |  | 47.4 | % |  |  | 47.2 | % |  |  | 48.9 | %
Diversey Care |  |  | 531.9 |  |  |  | 535.0 |  |  |  | 973.3 |  |  |  | 1,002.9 |
As a % of Total Company net sales |  |  | 30.8 | % |  |  | 30.0 | % |  |  | 29.3 | % |  |  | 28.4 | %
Product Care(1) |  |  | 374.2 |  |  |  | 383.9 |  |  |  | 741.4 |  |  |  | 763.8 |
As a % of Total Company net sales |  |  | 21.7 | % |  |  | 21.5 | % |  |  | 22.3 | % |  |  | 21.6 | %
Other(1) |  |  | 18.6 |  |  |  | 19.5 |  |  |  | 35.9 |  |  |  | 38.3 |
Total Company Net Sales |  | $ | 1,727.0 |  |  | $ | 1,785.0 |  |  | $ | 3,317.6 |  |  | $ | 3,531.4 |
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
(In millions) |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Adjusted EBITDA: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Food Care |  | $ | 162.8 |  |  | $ | 173.7 |  |  | $ | 310.6 |  |  | $ | 364.2 |
Adjusted EBITDA Margin |  |  | 20.3 | % |  |  | 20.5 | % |  |  | 19.8 | % |  |  | 21.1 | %
Diversey Care |  |  | 86.2 |  |  |  | 69.0 |  |  |  | 122.5 |  |  | 110.1 |
Adjusted EBITDA Margin |  |  | 16.2 | % |  |  | 12.9 | % |  |  | 12.6 | % |  |  | 11.0 | %
Product Care(1) |  |  | 78.8 |  |  |  | 79.6 |  |  | 155.9 |  |  |  | 156.0 |
Adjusted EBITDA Margin |  |  | 21.1 | % |  |  | 20.7 | % |  |  | 21.0 | % |  |  | 20.4 | %
Other(1) |  |  | (22.2 | ) |  |  | (14.7 | ) |  |  | (40.3 | ) |  |  | (38.5 | )
Non-U.S. GAAP Total Company Adjusted EBITDA |  | $ | 305.6 |  |  | $ | 307.6 |  |  | $ | 548.7 |  |  | $ | 591.8 |
Adjusted EBITDA Margin |  |  | 17.7 | % |  |  | 17.2 | % |  |  | 16.5 | % |  |  | 16.8 | %
(1) | As of January 1, 2016, our Kevothermal business was moved from Other to our Product Care Segment. This resulted in a reclassification of $2.9 million of net sales and $0.6 million of adjusted EBITDA for the three months ended June 30, 2015 and $5.7 million of net sales and $1.4 million of adjusted EBITDA for the six months ended June 30, 2015.
The following table shows a reconciliation of Total Company Adjusted EBITDA to Net earnings available to common stockholders:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
(In millions) |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Total Company Adjusted EBITDA |  | $ | 305.6 |  |  | $ | 307.6 |  |  | $ | 548.7 |  |  | $ | 591.8 |
Depreciation and amortization (1)(3) |  |  | (74.3 | ) |  |  | (69.3 | ) |  |  | (137.8 | ) |  |  | (142.4 | )
Special items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accelerated depreciation of non-strategic assets related to restructuring programs |  |  | 0.1 |  |  |  | (0.3 | ) |  |  | 0.1 |  |  |  | 0.3 |
Accelerated depreciation and amortization of fixed assets and intangible assets for Venezuelan subsidiaries(1) |  |  | 4.8 |  |  |  | — |  |  |  | 4.8 |  |  |  | — |
Restructuring and other charges(1)(4) |  |  | (1.6 | ) |  |  | (16.9 | ) |  |  | (1.6 | ) |  |  | (29.6 | )
Other restructuring associated costs included in cost of sales and selling, general and administrative expenses |  |  | (5.2 | ) |  |  | (10.7 | ) |  |  | (11.3 | ) |  |  | (19.2 | )
SARs |  |  | 0.1 |  |  |  | (1.6 | ) |  |  | (0.2 | ) |  |  | (4.5 | )
Foreign currency exchange (loss) gains related to Venezuelan subsidiaries |  |  | (1.1 | ) |  |  | (30.5 | ) |  |  | (2.8 | ) |  |  | (29.7 | )
Charges related to ceasing operations in Venezuela(1) |  |  | (52.1 | ) |  |  | — |  |  |  | (52.1 | ) |  |  | — |
Loss on debt redemption and refinancing activities |  |  | — |  |  |  | (110.8 | ) |  |  | — |  |  |  | (111.3 | )
Gain (loss) on sale of North American foam trays and absorbent pads business and European food trays business |  |  | — |  |  |  | 29.2 |  |  |  | (1.6 | ) |  |  | 29.2 |
Gain (loss) related to the sale of other businesses, investments and property, plant and equipment |  |  | (0.4 | ) |  |  | 5.3 |  |  |  | (2.1 | ) |  |  | 8.8 |
Other special items(2) |  |  | 1.4 |  |  |  | (0.1 | ) |  |  | 0.2 |  |  |  | (1.7 | )
Interest expense |  |  | (54.3 | ) |  |  | (59.0 | ) |  |  | (109.0 | ) |  |  | (117.5 | )
Income tax provision |  |  | 73.4 |  |  |  | 14.8 |  |  |  | 93.8 |  |  |  | 48.9 |
Net earnings available to common stockholders |  | $ | 49.6 |  |  | $ | 28.1 |  |  | $ | 141.5 |  |  | $ | 125.3 |
(1) | Due to the ongoing challenging economic situation in Venezuela, the Company approved a program in the second quarter of 2016 to cease operations in the country. Refer to Note 1 of the Condensed Consolidated Statement of Operations for further details.
(2) | Other special items for the three and six months ended June 30, 2016 primarily included a reduction in a non-income tax reserve following the completion of a governmental audit partially offset by legal fees associated with restructuring and acquisitions. Other special items for the three and six months ended June 30, 2015 primarily included legal fees associated with restructuring and acquisitions.
(3) | Depreciation and amortization by segment is as follows:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
(In millions) |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Food Care |  | $ | 24.5 |  |  | $ | 26.8 |  |  | $ | 50.2 |  |  | $ | 55.3 |
Diversey Care |  |  | 25.0 |  |  |  | 25.2 |  |  |  | 48.0 |  |  |  | 51.3 |
Product Care |  |  | 9.3 |  |  |  | 9.4 |  |  |  | 18.9 |  |  |  | 19.5 |
Other |  |  | 15.5 |  |  |  | 7.9 |  |  |  | 20.7 |  |  |  | 16.3 |
Total Company depreciation and amortization(1) |  | $ | 74.3 |  |  | $ | 69.3 |  |  | $ | 137.8 |  |  | $ | 142.4 |
(1) | Includes share-based incentive compensation of $16.8 million and $31.2 million for the three and six months ended June 30, 2016 and $14.9 million and $33.2 million for the three and six months ended June 30, 2015, respectively.
(4) | Restructuring and other charges by segment were as follows:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
(In millions) |  |  | 2016 |  |  |  | 2015 |  |  |  | 2016 |  |  |  | 2015 |
Food Care |  | $ | 0.7 |  |  | $ | 7.2 |  |  | $ | 0.7 |  |  | $ | 14.1 |
Diversey Care |  |  | 0.5 |  |  |  | 6.3 |  |  |  | 0.5 |  |  |  | 9.5 |
Product Care |  |  | 0.4 |  |  |  | 3.3 |  |  |  | 0.4 |  |  |  | 5.9 |
Other |  |  | — |  |  |  | 0.1 |  |  |  | — |  |  |  | 0.1 |
Total Company restructuring and other charges(1) |  | $ | 1.6 |  |  | $ | 16.9 |  |  | $ | 1.6 |  |  | $ | 29.6 |
(1) | For the three and six months ended June 30, 2016 restructuring and other charges excludes $0.3 million related to severance and termination benefits for employees in our Venezuelan subsidiaries.
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.”
|  | June 30, |  |  | December 31, |
(In millions) |  | 2016 |  |  | 2015 |
Assets: |  |  |  |  |  |  |  |
Trade receivables, net, and finished goods inventories, net |  |  |  |  |  |  |  |
Food Care |  | $ | 563.3 |  |  | $ | 522.4 |
Diversey Care |  |  | 515.8 |  |  |  | 440.3 |
Product Care |  |  | 238.0 |  |  |  | 222.0 |
Other |  |  | 15.3 |  |  |  | 12.5 |
Total segments and other |  |  | 1,332.4 |  |  |  | 1,197.2 |
Assets not allocated |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  | 297.5 |  |  |  | 358.4 |
Property and equipment, net |  |  | 980.0 |  |  |  | 930.7 |
Goodwill |  |  | 2,906.8 |  |  |  | 2,909.5 |
Intangible assets, net |  |  | 764.4 |  |  |  | 784.3 |
Assets held for sale |  |  | 3.4 |  |  |  | 10.3 |
Other |  |  | 1,242.2 |  |  |  | 1,199.6 |
Total |  | $ | 7,526.7 |  |  | $ | 7,390.0 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration