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Acquisitions | 9 Months Ended
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Sep. 30, 2020
Business Combinations [Abstract] |
Acquisitions | Acquisitions Acquisitions Automated Packaging Systems, LLC On August 1, 2019 the Company acquired 100% of the limited liability company interest in Automated Packaging Systems, LLC, formerly, Automated Packaging Systems, Inc. (“Automated”), a manufacturer of automated bagging systems. The acquisition is included in our Protective reporting segment. Automated offers opportunities to expand the Company's automated solutions and into adjacent markets. Cash paid for Automated was $441.4 million. The opening balance sheet includes $58.2 million of assumed liabilities in connection with a deferred incentive compensation plan for Automated's European employees. Of this amount, $19.0 million and $19.7 million were paid during the nine months ending September 30, 2020 and the fourth quarter of 2019, respectively. Sealed Air is expected to make the remaining payment to the deferred incentive compensation plan participants in June 2021. The purchase price was primarily funded with proceeds from the incremental term facility provided for under an amendment to our Credit Facility, as described in Note 14, "Debt and Credit Facilities," of the Notes to Condensed Consolidated Financial Statements. For the nine months ended September 30, 2020, transaction expenses recognized for the Automated acquisition were $0.3 million. These expenses primarily relate to the first quarter purchase price adjustment and are included within selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. The following table summarizes the consideration transferred to acquire Automated and the allocation of purchase price among the assets acquired and liabilities assumed, including measurement period adjustments recorded through the finalized purchase price allocation on August 1, 2020.
|  | Revised Preliminary Allocation |  | Measurement Period |  | Final Allocation
(In millions) |  | As of August 1, 2019 |  | Adjustments |  | As of September 30, 2020
Total consideration transferred |  | $ | 445.7 |  |  | $ | (4.3) |  |  | $ | 441.4 |
Assets: |  |  |  |  |  |
Cash and cash equivalents |  | 16.0 |  |  | (0.2) |  |  | 15.8 |
Trade receivables, net |  | 37.3 |  |  | — |  |  | 37.3 |
Other receivables |  | 0.3 |  |  | — |  |  | 0.3 |
Inventories, net |  | 40.7 |  |  | (0.7) |  |  | 40.0 |
Prepaid expenses and other current assets |  | 2.3 |  |  | — |  |  | 2.3 |
Property and equipment, net(1) |  | 76.9 |  |  | 8.7 |  |  | 85.6 |
Identifiable intangible assets, net(1) |  | 81.1 |  |  | (0.6) |  |  | 80.5 |
Goodwill |  | 261.3 |  |  | (14.6) |  |  | 246.7 |
Operating lease right-of-use-assets |  | — |  |  | 4.3 |  |  | 4.3 |
Other non-current assets |  | 24.7 |  |  | 1.1 |  |  | 25.8 |
Total assets |  | $ | 540.6 |  |  | $ | (2.0) |  |  | $ | 538.6 |
Liabilities: |  |  |  |  |  |
Accounts payable |  | 12.0 |  |  | — |  |  | 12.0 |
Current portion of long-term debt |  | 2.6 |  |  | (0.5) |  |  | 2.1 |
Current portion of operating lease liabilities |  | — |  |  | 1.5 |  |  | 1.5 |
Other current liabilities |  | 56.2 |  |  | (3.3) |  |  | 52.9 |
Long-term debt, less current portion |  | 4.3 |  |  | (0.3) |  |  | 4.0 |
Long-term operating lease liabilities, less current portion |  | — |  |  | 2.8 |  |  | 2.8 |
Deferred taxes |  | — |  |  | 0.5 |  |  | 0.5 |
Other non-current liabilities |  | 19.8 |  |  | 1.6 |  |  | 21.4 |
Total liabilities |  | $ | 94.9 |  |  | $ | 2.3 |  |  | $ | 97.2 |
(1)In the Preliminary Allocation as of August 1, 2019, $2.4 million of software was initially recorded as computer hardware within Property and equipment, net as disclosed in the 2019 Form 10-K. The asset represents software acquired and has been reclassified in identifiable intangible assets, net within Revised Preliminary Allocation in the table above. Measurement period adjustments recorded in the current year through finalization of the purchase price allocation on August 1, 2020 were primarily a result of the deferred incentive compensation payment adjustment and a favorable net working capital and purchase price settlement with the seller of $4.3 million during the first quarter. The following table summarizes the acquired identifiable intangible assets, net and their useful lives.
|  | Amount |  | Useful life
|  | (in millions) |  | (in years)
Customer relationships |  | $ | 28.9 |  |  | 13.0
Trademarks and tradenames |  | 15.6 |  |  | 9.1
Capitalized software |  | 2.4 |  |  | 3.0
Technology |  | 29.6 |  |  | 6.4
Backlog |  | 4.0 |  |  | 0.4
Total intangible assets with definite lives |  | $ | 80.5 |  |  |
Goodwill is a result of the expected synergies and cross-selling opportunities that this acquisition is expected to bring to the Company, as well as the expected growth potential in the acquired automated and sustainable solutions. Goodwill allocated to Automated's U.S. entities is deductible for tax purposes. Goodwill allocated to Automated's foreign entities is not deductible for tax purposes. The goodwill balance has been recorded to the Protective reportable segment. Other non-current assets include the net overfunded position of a closed defined benefit pension plan in the United Kingdom. Refer to Note 17, "Defined Benefit Pension Plans and Other Post-Employment Benefit Plans," of the Notes to Condensed Consolidated Financial Statements for additional information on the Company's other defined benefit pension plans. In conjunction with the acquisition and subsequent integration, the Company expects to incur restructuring charges. No restructuring accrual is included in our opening balance sheet as the liability did not exist at the time of acquisition. Refer to Note 13, "Restructuring Activities," of the Notes to Condensed Consolidated Financial Statements for more detail on the Company's restructuring activity. The inclusion of Automated in our consolidated financial statements is not deemed material with respect to the requirement to provide pro forma results of operations in ASC 805. As such, pro forma information is not presented. Other 2019 Acquisition Activity During the second quarter of 2019, Food had acquisition activity resulting in a total purchase price paid of $23.4 million. The Company allocated the consideration transferred to the fair value of assets acquired and liabilities assumed, resulting in an allocation to goodwill of $6.0 million. The final purchase price adjustments resulting in an increase to goodwill of $0.3 million were recorded in the third quarter of 2019. Identifiable intangible assets acquired were not material.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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