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Segments | 3 Months Ended
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Mar. 31, 2020
Segment Reporting [Abstract] |
Segments | Segments The Company’s segment reporting structure consists of two reportable segments as follows and a Corporate category: •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, 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 Consolidated Financial Statements. The following tables show Net Sales and Adjusted EBITDA by reportable segment:
|  |  |  |  |  | Three Months Ended March 31, |  |
(In millions) |  |  |  |  |  | 2020 |  | 2019
Net Sales: |  |  |  |  |  |  |  |
Food Care |  |  |  |  |  | $ | 690.3 |  |  | $ | 680.0 |
As a % of Total Company net sales |  |  |  |  |  | 58.8 | % |  | 61.1 | %
Product Care |  |  |  |  |  | 483.6 |  |  | 432.7 |
As a % of Total Company net sales |  |  |  |  |  | 41.2 | % |  | 38.9 | %
Total Company Net Sales |  |  |  |  |  | $ | 1,173.9 |  |  | $ | 1,112.7 |
|  |  |  |  |  | Three Months Ended March 31, |  |
(In millions) |  |  |  |  |  | 2020 |  | 2019
Adjusted EBITDA from continuing operations |  |  |  |  |  |  |  |
Food Care |  |  |  |  |  | $ | 156.3 |  |  | $ | 142.9 |
Adjusted EBITDA Margin |  |  |  |  |  | 22.6 | % |  | 21.0 | %
Product Care |  |  |  |  |  | 92.8 |  |  | 75.0 |
Adjusted EBITDA Margin |  |  |  |  |  | 19.2 | % |  | 17.3 | %
Corporate |  |  |  |  |  | 4.1 |  |  | (2.1) |
Total Company Adjusted EBITDA from continuing operations |  |  |  |  |  | $ | 253.2 |  |  | $ | 215.8 |
Adjusted EBITDA Margin |  |  |  |  |  | 21.6 | % |  | 19.4 | %
The following table shows a reconciliation of net earnings before income tax provision to Total Company Adjusted EBITDA from continuing operations:
|  |  |  |  |  | Three Months Ended March 31, |  |
(In millions) |  |  |  |  |  | 2020 |  | 2019
Earnings before income tax provision |  |  |  |  |  | $ | 147.2 |  |  | $ | 94.7 |
Interest expense, net |  |  |  |  |  | 44.4 |  |  | 44.9 |
Depreciation and amortization, net of adjustments(1) |  |  |  |  |  | 51.5 |  |  |  | 40.2 |
Special Items: |  |  |  |  |  |  |  |
Restructuring charges(2) |  |  |  |  |  | 0.6 |  |  | 7.4 |
Other restructuring associated costs(3) |  |  |  |  |  | 4.0 |  |  | 16.7 |
Foreign currency exchange loss due to highly inflationary economies |  |  |  |  |  | 0.9 |  |  | 0.8 |
Charges related to acquisition and divestiture activity |  |  |  |  |  | 2.9 |  |  | 3.7 |
Other Special Items(4) |  |  |  |  |  | 1.7 |  |  | 7.4 |
Pre-tax impact of Special Items |  |  |  |  |  | 10.1 |  |  | 36.0 |
Total Company Adjusted EBITDA from continuing operations |  |  |  |  |  | $ | 253.2 |  |  | $ | 215.8 |
(1)Depreciation and amortization by segment were as follows:
|  |  |  |  |  | Three Months Ended March 31, |  |
(In millions) |  |  |  |  |  | 2020 |  | 2019
Food Care |  |  |  |  |  | $ | 29.0 |  |  | $ | 26.2 |
Product Care |  |  |  |  |  | 22.5 |  |  | 14.9 |
Total Company depreciation and amortization(i) |  |  |  |  |  | $ | 51.5 |  |  | $ | 41.1 |
Depreciation and amortization adjustments |  |  |  |  |  | — |  |  | (0.9) |
Depreciation and amortization, net of adjustments |  |  |  |  |  | $ | 51.5 |  |  |  | $ | 40.2 |
(i) Includes share-based incentive compensation of $8.5 million and $8.4 million for the three months ended March 31, 2020 and 2019, respectively. (2)Restructuring charges by segment were as follows:
|  |  |  |  |  | Three Months Ended March 31, |  |
(In millions) |  |  |  |  |  | 2020 |  | 2019
Food Care |  |  |  |  |  | $ | 0.3 |  |  | $ | 3.8 |
Product Care |  |  |  |  |  | 0.3 |  |  | 3.6 |
Total Company restructuring charges |  |  |  |  |  | $ | 0.6 |  |  | $ | 7.4 |
(3)Other restructuring associated costs for the three months ended March 31, 2020 primarily relate to fees paid to third-party consultants in support of Reinvent SEE. Other restructuring associated costs for the three months ended March 31, 2019 primarily relate to fees paid to third-party consultants in support of Reinvent SEE and costs associated with property consolidations and machinery and equipment relocations resulting from Reinvent SEE. See Note 13, "Restructuring Activities," to the Condensed Consolidated Financial Statements for additional information related to our Reinvent SEE and our restructuring program. (4)Other Special Items for the three months ended March 31, 2019, primarily included fees related to professional services mainly legal fees, directly associated with Special Items or events that are considered one-time or infrequent. 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) |  | March 31, 2020 |  | December 31, 2019
Assets allocated to segments: |  |  |  |
Food Care |  | $ | 1,923.8 |  |  | $ | 1,997.8 |
Product Care |  | 2,701.8 |  |  | 2,762.9 |
Total segments |  | 4,625.6 |  |  | 4,760.7 |
Assets not allocated: |  |  |  |
Cash and cash equivalents |  | $ | 274.6 |  |  | $ | 262.4 |
Assets held for sale |  | 1.8 |  |  | 2.8 |
Income tax receivables |  | 15.9 |  |  | 32.8 |
Other receivables |  | 74.3 |  |  | 80.3 |
Deferred taxes |  | 228.8 |  |  | 238.6 |
Other |  | 450.0 |  |  | 387.6 |
Total |  | $ | 5,671.0 |  |  | $ | 5,765.2 |

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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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