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Segments | 6 Months Ended
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Jun. 30, 2019
Segment Reporting [Abstract] |
Segments | Segments The Company’s segment reporting structure consists of two reportable segments and a Corporate category as follows:
• | Food Care; and
• | Product Care.
The Company’s Food Care and Product Care segments are considered reportable segments under FASB ASC Topic 280. Our reportable segments are aligned with similar groups of products and management team. Corporate 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. The Company evaluates performance of the reportable segments based on the results of each segment. The Company allocates expense to each segment based on various factors including direct usage of resources, allocation of headcount, allocation of software licenses or, in cases where costs are not clearly delineated, costs may be allocated on portion of either net trade sales or an expense factor such as cost of goods sold. We allocate and disclose depreciation and amortization expense to our segments, although depreciation and amortization are not included in the segment performance metric Adjusted EBITDA. We also allocate and disclose restructuring charges and impairment of goodwill and other intangible assets by segment, although they are not included in the segment performance metric Adjusted EBITDA since restructuring charges and impairment of goodwill and other intangible assets are categorized as Special Items. The accounting policies of the reportable segments and Corporate are the same as those applied to the Condensed Consolidated Financial Statements. Refer to "Non-U.S. GAAP Information" for additional details on the use and calculation of our non-U.S. GAAP measures presented below. The following tables show Net Sales and Adjusted EBITDA by reportable segment:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In millions) |  | 2019 |  | 2018 |  | 2019 |  | 2018
Net Sales: |  |  |  |  |  |  |  |  |  |  |  |
Food Care |  | $ | 711.0 |  |  | $ | 713.0 |  |  | $ | 1,391.0 |  |  | $ | 1,409.3 |
As a % of Total Company net sales |  | 61.2 | % |  | 61.7 | % |  | 61.2 | % |  | 61.6 | %
Product Care |  | 450.0 |  |  | 442.2 |  |  | 882.7 |  |  | 876.9 |
As a % of Total Company net sales |  | 38.8 | % |  | 38.3 | % |  | 38.8 | % |  | 38.4 | %
Total Company Net Sales |  | $ | 1,161.0 |  |  | $ | 1,155.2 |  |  | $ | 2,273.7 |  |  | $ | 2,286.2 |
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In millions) |  | 2019 |  | 2018 |  | 2019 |  | 2018
Non-U.S. GAAP Adjusted EBITDA from continuing operations |  |  |  |  |  |  |  |  |  |  |  |
Food Care |  | $ | 155.6 |  |  | $ | 135.4 |  |  | $ | 298.5 |  |  | $ | 270.1 |
Adjusted EBITDA Margin |  | 21.9 | % |  | 19.0 | % |  | 21.5 | % |  | 19.2 | %
Product Care |  | 84.0 |  |  | 78.5 |  |  | 159.0 |  |  | 156.9 |
Adjusted EBITDA Margin |  | 18.7 | % |  | 17.8 | % |  | 18.0 | % |  | 17.9 | %
Corporate |  | (2.9 | ) |  | 3.6 |  |  | (5.0 | ) |  | (4.7 | )
Non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations |  | $ | 236.7 |  |  | $ | 217.5 |  |  | $ | 452.5 |  |  | $ | 422.3 |
Adjusted EBITDA Margin |  | 20.4 | % |  | 18.8 | % |  | 19.9 | % |  | 18.5 | %
The following table shows a reconciliation of net earnings (loss) from continuing operations to non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In millions) |  | 2019 |  | 2018 |  | 2019 |  | 2018
Net earnings (loss) from continuing operations |  | $ | 25.5 |  |  | $ | 83.3 |  |  | $ | 89.8 |  |  | $ | (124.7 | )
Interest expense, net |  | 43.2 |  |  | 44.5 |  |  | 88.1 |  |  | 86.5 |
Income tax provision |  | 12.3 |  |  | 33.5 |  |  | 42.7 |  |  | 355.0 |
Depreciation and amortization, net of adjustments(1) |  | 38.0 |  |  | 40.7 |  |  | 78.2 |  |  | 80.9 |
Special Items: |  |  |  |  |  |  |  |
Restructuring charges(2) |  | 29.3 |  |  | 7.1 |  |  | 36.7 |  |  | 15.7 |
Other restructuring associated costs(3) |  | 21.3 |  |  | (0.4 | ) |  | 38.0 |  |  | 1.8 |
Foreign currency exchange loss due to highly inflationary economies |  | 1.3 |  |  | — |  |  | 2.1 |  |  | — |
Charges related to the Novipax settlement agreement |  | 59.0 |  |  | — |  |  | 59.0 |  |  | — |
(Income) charges related to acquisition and divestiture activity |  | (0.5 | ) |  | 7.0 |  |  | 3.2 |  |  | 17.8 |
Loss (gain) from class-action litigation settlement |  | — |  |  | 0.1 |  |  | — |  |  | (12.6 | )
Other Special Items(4) |  | 7.3 |  |  | 1.7 |  |  | 14.7 |  |  | 1.9 |
Pre-tax impact of Special Items |  | 117.7 |  |  | 15.5 |  |  | 153.7 |  |  | 24.6 |
Non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations |  | $ | 236.7 |  |  | $ | 217.5 |  |  | $ | 452.5 |  |  | $ | 422.3 |
(1) | Depreciation and amortization by segment were as follows:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In millions) |  | 2019 |  | 2018 |  | 2019 |  | 2018
Food Care |  | $ | 25.0 |  |  | $ | 27.2 |  |  | $ | 51.2 |  |  | $ | 54.1 |
Product Care |  | 13.1 |  |  | 13.6 |  |  | 28.0 |  |  | 27.1 |
Total Company depreciation and amortization(i) |  | 38.1 |  |  | 40.8 |  |  | 79.2 |  |  | 81.2 |
Depreciation and amortization adjustments |  | (0.1 | ) |  | (0.1 | ) |  | (1.0 | ) |  | (0.3 | )
Depreciation and amortization, net of adjustments |  | $ | 38.0 |  |  | $ | 40.7 |  |  | $ | 78.2 |  |  | $ | 80.9 |
(i) | Includes share-based incentive compensation of $4.8 million and $13.2 million for the three and six months ended June 30, 2019, respectively, and $7.7 million and $15.3 million for the three and six months ended June 30, 2018, respectively.
(2) | Restructuring charges by segment were as follows:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In millions) |  | 2019 |  | 2018 |  | 2019 |  | 2018
Food Care |  | $ | 18.6 |  |  | $ | 1.5 |  |  | $ | 22.4 |  |  | $ | 6.1 |
Product Care |  | 10.7 |  |  | 5.6 |  |  | 14.3 |  |  | 9.6 |
Total Company restructuring charges |  | $ | 29.3 |  |  | $ | 7.1 |  |  | $ | 36.7 |  |  | $ | 15.7 |
(3) | Other restructuring associated costs for three and six months ended June 30, 2019, primarily relate to fees paid to third-party consultants in support of Reinvent SEE and costs related to property consolidations resulting from Reinvent SEE.
(4) | Other Special Items for the three and six months ended June 30, 2019, primarily included fees related to professional services.
Assets by Reportable Segments The following table shows assets allocated by reportable segment. Assets allocated by reportable segment include: trade receivables, net; inventory, net; property and equipment, net; goodwill; intangible assets, net; and leased systems, net.
(In millions) |  | June 30, 2019 |  | December 31, 2018
Assets allocated to segments:(1) |  |  |  |  |  |
Food Care |  | $ | 2,012.1 |  |  | $ | 1,914.4 |
Product Care |  | 2,260.9 |  |  | 2,273.8 |
Total segments |  | 4,273.0 |  |  | 4,188.2 |
Assets not allocated: |  |  |  |
Cash and cash equivalents |  | $ | 222.2 |  |  | $ | 271.7 |
Assets held for sale |  | 0.6 |  |  | 0.6 |
Income tax receivables |  | 53.4 |  |  | 58.4 |
Other receivables |  | 91.7 |  |  | 81.3 |
Deferred taxes |  | 175.5 |  |  | 170.5 |
Other |  | 400.1 |  |  | 279.5 |
Total |  | $ | 5,216.5 |  |  | $ | 5,050.2 |
(1) | Beginning in 2018, the Company implemented a change in allocation of Corporate expenses, which are now allocated to Food Care and Product Care segments. At that time, the Company revised the method of allocation for some assets including property and equipment, net and goodwill, which were previously unallocated.
The assets allocated to segments as of December 31, 2018 have been revised to correct an error in the previous allocation of property and equipment, net starting in the first quarter 2018. Assets allocated to Food Care were understated by $372.9 million with an offset to Product Care of $369.6 million and $3.3 million to assets not allocated. There is no impact to the financial statements to total identifiable assets at December 31, 2018. This error did not impact the Company's annual assessment of goodwill impairment or any other impairment considerations of long-lived 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://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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