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Segments | 9 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
Segments | Segments The Company’s segment reporting structure consists of two reportable segments as follows and a Corporate category: •Food; and •Protective. The Company’s Food and Protective segments are considered reportable segments under ASC Topic 280. Our reportable segments are aligned with similar groups of products. Corporate includes certain costs that are not allocated to the reportable segments. 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 Segment 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 sales. We allocate and disclose depreciation and amortization expense to our segments, although depreciation and amortization are not included in the segment performance metric Segment 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 Segment Adjusted EBITDA since restructuring charges and impairment of goodwill and other intangible assets are categorized as Special Items (as identified below). The accounting policies of the reportable segments and Corporate are the same as those applied to the Condensed Consolidated Financial Statements. The following tables show Net sales and Segment Adjusted EBITDA by reportable segment:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In millions) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Net sales: |  |  |  |  |  |  |  |
Food |  | $ | 797.4 |  |  | $ | 704.6 |  |  | $ | 2,236.3 |  |  | $ | 2,068.1 |
As a % of Consolidated net sales |  | 56.7 | % |  | 57.0 | % |  | 55.9 | % |  | 58.1 | %
Protective |  | 609.3 |  |  | 532.6 |  |  | 1,766.0 |  |  | 1,494.2 |
As a % of Consolidated net sales |  | 43.3 | % |  | 43.0 | % |  | 44.1 | % |  | 41.9 | %
Consolidated Net sales |  | $ | 1,406.7 |  |  | $ | 1,237.2 |  |  | $ | 4,002.3 |  |  | $ | 3,562.3 |
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In millions) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Segment Adjusted EBITDA: |  |  |  |  |  |  |  |
Food Adjusted EBITDA |  | $ | 169.4 |  |  | $ | 152.4 |  |  | $ | 484.4 |  |  | $ | 477.8 |
Food Adjusted EBITDA Margin |  | 21.2 | % |  | 21.6 | % |  | 21.7 | % |  | 23.1 | %
Protective Adjusted EBITDA |  | 102.7 |  |  | 108.7 |  |  | 319.9 |  |  | 293.0 |
Protective Adjusted EBITDA Margin |  | 16.9 | % |  | 20.4 | % |  | 18.1 | % |  | 19.6 | %
Total Segment Adjusted EBITDA |  | $ | 272.1 |  |  | $ | 261.1 |  |  | $ | 804.3 |  |  | $ | 770.8 |
The following table shows a reconciliation of Segment Adjusted EBITDA to Earnings before income tax provision:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In millions) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Food Adjusted EBITDA |  | $ | 169.4 |  |  | $ | 152.4 |  |  | $ | 484.4 |  |  | $ | 477.8 |
Protective Adjusted EBITDA |  | 102.7 |  |  | 108.7 |  |  | 319.9 |  |  | 293.0 |
Corporate Adjusted EBITDA |  | (1.5) |  |  | (1.8) |  |  | (2.4) |  |  | 1.6 |
Interest expense, net |  | (42.4) |  |  | (43.0) |  |  | (127.6) |  |  | (130.7) |
Depreciation and amortization(1) |  | (55.2) |  |  | (56.2) |  |  | (170.3) |  |  | (161.1) |
Special Items: |  |  |  |  |  |  |  |
Restructuring charges(2) |  | (2.4) |  |  | (1.0) |  |  | (4.5) |  |  | (11.7) |
Other restructuring associated costs(3) |  | (5.4) |  |  | (7.2) |  |  | (15.5) |  |  | (15.0) |
Foreign currency exchange loss due to highly inflationary economies |  | (0.9) |  |  | (1.1) |  |  | (2.9) |  |  | (3.2) |
Loss on debt redemption and refinancing activities |  | (14.7) |  |  | — |  |  | (14.7) |  |  | — |
Increase in fair value of equity investments |  | 6.6 |  |  | — |  |  | 6.6 |  |  | — |
Charges related to acquisition and divestiture activity |  | (0.8) |  |  | (1.0) |  |  | (1.9) |  |  | (5.1) |
Other Special Items |  | (1.0) |  |  | (0.6) |  |  | (1.9) |  |  | (4.3) |
Pre-tax impact of Special Items |  | (18.6) |  |  | (10.9) |  |  | (34.8) |  |  | (39.3) |
Earnings before income tax provision |  | $ | 154.4 |  |  | $ | 149.2 |  |  | $ | 469.2 |  |  | $ | 441.3 |
(1)Depreciation and amortization by segment were as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In millions) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Food |  | $ | 32.3 |  |  | $ | 31.7 |  |  | $ | 96.7 |  |  | $ | 90.9 |
Protective |  | 22.9 |  |  | 24.5 |  |  | 73.6 |  |  | 70.2 |
Consolidated depreciation and amortization(i) |  | $ | 55.2 |  |  | $ | 56.2 |  |  | $ | 170.3 |  |  | $ | 161.1 |
(i) Includes share-based incentive compensation of $10.6 million and $34.4 million for the three and nine months ended September 30, 2021, respectively, and $12.3 million and $31.3 million for the three and nine months ended September 30, 2020, respectively. (2)Restructuring charges by segment were as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In millions) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Food |  | $ | 0.8 |  |  | $ | (1.4) |  |  | $ | 1.9 |  |  | $ | 3.8 |
Protective |  | 1.6 |  |  | 2.4 |  |  | 2.6 |  |  | 7.9 |
Consolidated restructuring charges |  | $ | 2.4 |  |  | $ | 1.0 |  |  | $ | 4.5 |  |  | $ | 11.7 |
(3)Restructuring associated costs for the three months ended September 30, 2021 primarily relate to fees paid to third-party consultants in support of the Reinvent SEE business transformation. Restructuring associated costs for the nine months ended September 30, 2021 also includes a one-time, non-cash cumulative translation adjustment (CTA) loss recognized due to the wind-up of one of our legal entities. Restructuring associated costs for the three and nine months ended September 30, 2020, primarily relate to fees paid to third-party consultants in support of the Reinvent SEE business transformation. 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) |  | September 30, 2021 |  | December 31, 2020
Assets allocated to segments: |  |  |  |
Food |  | $ | 2,168.2 |  |  | $ | 2,019.1 |
Protective |  | 2,885.5 |  |  | 2,795.4 |
Total segments |  | 5,053.7 |  |  | 4,814.5 |
Assets not allocated: |  |  |  |
Cash and cash equivalents |  | $ | 393.7 |  |  | $ | 548.7 |
Current assets held for sale |  | 3.3 |  |  | 0.3 |
Income tax receivables |  | 31.4 |  |  | 71.2 |
Other receivables |  | 96.7 |  |  | 69.5 |
Deferred taxes |  | 172.1 |  |  | 187.1 |
Other |  | 408.9 |  |  | 392.5 |
Total |  | $ | 6,159.8 |  |  | $ | 6,083.8 |

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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