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Segments | 12 Months Ended
--- | ---
Dec. 31, 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. Corporate includes certain costs that are not allocated to or monitored by the reportable segments' management. The Company evaluates performance of the reportable segments based on the results of each segment. The performance metric used by the Company's chief operating decision maker to evaluate performance of our reportable segments is Adjusted EBITDA. 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. However, restructuring charges and goodwill are not included in the segment performance metric Adjusted EBITDA since they are categorized as certain specified items (“Special Items”), in addition to certain transaction and other charges and gains related to acquisitions and divestitures and certain other specific items excluded from the calculation of Adjusted EBITDA. The accounting policies of the reportable segments and Corporate are the same as those applied to the Consolidated Financial Statements. The following tables show Net Sales and Adjusted EBITDA by reportable segment:
|  | Year Ended December 31,
(In millions) |  | 2019 |  | 2018 |  | 2017
Net Sales |  |  |  |  |  |  |  |  |
Food Care |  | $ | 2,880.5 |  |  | $ | 2,908.1 |  |  | $ | 2,815.2 |
As a % of Total Company net sales |  | 60.1 | % |  | 61.4 | % |  | 63.1 | %
Product Care |  | 1,910.6 |  |  | 1,824.6 |  |  | 1,646.4 |
As a % of Total Company net sales |  | 39.9 | % |  | 38.6 | % |  | 36.9 | %
Total Company Net Sales |  | $ | 4,791.1 |  |  | $ | 4,732.7 |  |  | $ | 4,461.6 |
|  | Year Ended December 31,
(In millions) |  | 2019 |  | 2018 |  | 2017
Adjusted EBITDA from continuing operations |  |  |  |  |  |  |  |  |
Food Care |  | $ | 629.3 |  |  | $ | 577.8 |  |  | $ | 538.1 |
Adjusted EBITDA Margin |  | 21.8 | % |  | 19.9 | % |  | 19.1 | %
Product Care |  | 349.9 |  |  | 318.6 |  |  | 292.2 |
Adjusted EBITDA Margin |  | 18.3 | % |  | 17.5 | % |  | 17.7 | %
Corporate |  | (14.4 | ) |  | (6.9 | ) |  | 3.0 |
Total Company Adjusted EBITDA from continuing operations |  | $ | 964.8 |  |  | $ | 889.5 |  |  | $ | 833.3 |
Adjusted EBITDA Margin |  | 20.1 | % |  | 18.8 | % |  | 18.7 | %
The following table shows a reconciliation of net earnings before income tax provision to Total Company Adjusted EBITDA from continuing operations:
|  | Year Ended December 31,
(In millions) |  | 2019 |  | 2018 |  | 2017
Earnings before income tax provision |  | $ | 370.3 |  |  | $ | 457.8 |  |  | $ | 393.3 |
Interest expense, net |  | 184.1 |  |  | 177.9 |  |  | 184.2 |
Depreciation and amortization, net of adjustments(1) |  | 184.5 |  |  | 159.0 |  |  | 158.3 |
Special Items: |  |  |  |  |  |
Restructuring charges(2) |  | 41.9 |  |  | 47.8 |  |  | 12.1 |
Other restructuring associated costs(3) |  | 60.3 |  |  | 15.8 |  |  | 14.3 |
Foreign currency exchange loss due to highly inflationary economies |  | 4.6 |  |  | 2.5 |  |  | — |
Loss on debt redemption and refinancing activities |  | 16.1 |  |  | 1.9 |  |  | — |
Charges related to acquisition and divestiture activity |  | 14.9 |  |  | 34.2 |  |  | 84.1 |
Charges related to the Novipax settlement agreement |  | 59.0 |  |  | — |  |  | — |
Gain from class-action litigation settlement |  | — |  |  | (14.9 | ) |  | — |
Curtailment related to retained Diversey retirement plans |  | — |  |  | — |  |  | (13.5 | )
Other Special Items(4) |  | 29.1 |  |  | 7.5 |  |  | 0.5 |
Pre-tax impact of Special Items |  | 225.9 |  |  | 94.8 |  |  | 97.5 |
Total Company Adjusted EBITDA from continuing operations |  | $ | 964.8 |  |  | $ | 889.5 |  |  | $ | 833.3 |
(1) | Depreciation and amortization by segment were as follows:
|  | Year Ended December 31,
(In millions) |  | 2019 |  | 2018 |  | 2017
Food Care |  | $ | 110.3 |  |  | $ | 105.4 |  |  | $ | 108.9 |
Product Care |  | 75.0 |  |  | 56.0 |  |  | 49.4 |
Total Company depreciation and amortization(i) |  | 185.3 |  |  | 161.4 |  |  | 158.3 |
Depreciation and amortization adjustments(ii) |  | (0.8 | ) |  | (2.4 | ) |  | — |
Depreciation and amortization, net of adjustments |  | $ | 184.5 |  |  | $ | 159.0 |  |  | $ | 158.3 |
(i) | Includes share-based incentive compensation of $34.4 million in 2019, $29.9 million in 2018 and $38.2 million in 2017.
(ii) | Represents depreciation and amortization which is considered to be related to a Special Item and are also included in the Special Items presented in the above table.
(2) | Restructuring and other charges by segment were as follows:
|  | Year Ended December 31,
(In millions) |  | 2019 |  | 2018 |  | 2017
Food Care |  | $ | 23.5 |  |  | $ | 17.7 |  |  | $ | 7.6 |
Product Care |  | 18.4 |  |  | 30.1 |  |  | 4.5 |
Total Company restructuring charges |  | $ | 41.9 |  |  | $ | 47.8 |  |  | $ | 12.1 |
(3) | Other restructuring associated costs for the year ended December 31, 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 years ended December 31, 2019 and 2018, primarily included fees related to professional services, mainly legal fees, directly associated with Special Items or events that are considered one-time or infrequent
in nature. Other Special Items for the year ended December 31, 2017, primarily included transaction costs related to reorganizations. 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.
|  | December 31,
(In millions) |  | 2019 |  | 2018
Assets allocated to segments:(1) |  |  |  |  |  |
Food Care |  | $ | 1,997.8 |  |  | $ | 1,914.4 |
Product Care |  | 2,762.9 |  |  | 2,273.8 |
Total segments |  | $ | 4,760.7 |  |  | $ | 4,188.2 |
Assets not allocated: |  |  |  |
Cash and cash equivalents |  | 262.4 |  |  | 271.7 |
Assets held for sale |  | 2.8 |  |  | 0.6 |
Income tax receivables |  | 32.8 |  |  | 58.4 |
Other receivables |  | 80.3 |  |  | 81.3 |
Deferred taxes |  | 238.6 |  |  | 170.5 |
Other |  | 387.6 |  |  | 279.5 |
Total |  | $ | 5,765.2 |  |  | $ | 5,050.2 |
(1) | 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. 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 consolidated 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.
Geographic Information
|  | Year Ended December 31,
(In millions) |  | 2019 |  | 2018 |  | 2017
Net sales(1)(2): |  |  |  |  |  |
North America(3) |  | $ | 2,828.1 |  |  | $ | 2,734.9 |  |  | $ | 2,591.5 |
EMEA |  | 1,010.4 |  |  | 1,038.5 |  |  | 983.4 |
South America |  | 233.8 |  |  | 229.5 |  |  | 231.8 |
APAC |  | 718.8 |  |  | 729.8 |  |  | 654.9 |
Total |  | $ | 4,791.1 |  |  | $ | 4,732.7 |  |  | $ | 4,461.6 |
Total long-lived assets(1)(2)(4): |  |  |  |  |  |
North America |  | $ | 919.3 |  |  | $ | 740.5 |  |  |
EMEA |  | 345.8 |  |  | 270.5 |  |  |
South America |  | 50.2 |  |  | 52.8 |  |  |
APAC |  | 248.3 |  |  | 211.8 |  |  |
Total |  | $ | 1,563.6 |  |  | $ | 1,275.6 |  |  |
(1) | Amounts by geography have been reclassified from prior year disclosure to reflect adjustments to our regional operating model. As of January 1, 2019, our geographic regions are: North America, EMEA, South America and APAC. Our North American operations include Canada, the United States, Mexico and Central America. Mexico and Central America were previously included in Latin America. Refer to Note 2, "Summary of Significant Accounting Policies and Recently Issued Accounting Standards," of the Notes to Consolidated Financial Statements.
(2) | No non-U.S. country accounted for net sales in excess of 10% of consolidated net sales for the years ended December 31, 2019, 2018 or 2017 or long-lived assets in excess of 10% of consolidated long-lived assets at December 31, 2019 and 2018.
(3) | Net sales to external customers within the U.S. were $2,501.6 million, $2,402.3 million and $2,280.0 million for the years ended December 31, 2019, 2018 and 2017, respectively.
(4) Total long-lived assets represent total assets excluding total current assets, deferred tax assets, goodwill, intangible assets and non-current assets held for sale.

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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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