EX-99 2 ex99sept2018.htm 8-K THIRD QUARTER 2018 EARNINGS Exhibit

News Release

Corporate Headquarters
770 Township Line Road
Yardley, PA 19067-4219
 
crownblacklogoa08.gif


 
CROWN HOLDINGS, INC. REPORTS THIRD QUARTER 2018 RESULTS
 

Yardley, PA - October 17, 2018. Crown Holdings, Inc. (NYSE: CCK) today announced its financial results for the third quarter ended September 30, 2018.

Third Quarter Highlights

Earnings per share $1.23 versus $1.32 in 2017
Adjusted earnings per share $1.71 for the quarter versus $1.46 in 2017; $4.20 YTD versus $3.39 in 2017
Global beverage can volumes grew 3% in the quarter and 4% year-to-date
Free cash flow guidance affirmed
Transit Packaging integration and performance on plan

Net sales in the third quarter were $3,174 million compared to $2,468 million in the third quarter of 2017 reflecting the impact of the Signode acquisition, an increase in beverage can volumes and the pass through of higher material costs to customers.
 
Income from operations was $365 million in the quarter compared to $328 million in the third quarter of 2017. Segment income increased to $415 million in the third quarter compared to $352 million in the prior year third quarter primarily due to the Signode acquisition.

Commenting on the quarter, Timothy J. Donahue, President and Chief Executive Officer, stated, “The Company’s performance was solid, and we remain on plan for the remainder of the year.  Growth in our global beverage can businesses continued to be robust, offsetting soft European food can volumes reflecting the extremely challenging weather conditions which resulted in poor harvest yields. Growth in beverage cans is underpinned by the can’s increasing popularity among customers and consumers due to its many inherent benefits, including being the world’s most sustainable form of beverage packaging.   

“Equally important, our global growth projects remain on schedule.  We commenced production in July at a new one-line beverage can plant in Yangon, Myanmar.  The first line of the beverage can plant in Valencia, Spain began operations in October, with the second line to begin in December.  We will also start up a third beverage can line at the Company’s existing plant in Phnom Penh, Cambodia in November.

“We continue to expect the combined results of our business portfolio will generate significant cash this year and next which will be used, as planned, to reduce the floating rate portion of our debt.”

Interest expense was $105 million in the third quarter of 2018 compared to $64 million in 2017 primarily due to higher outstanding debt from borrowings incurred to finance the Signode acquisition.

Net income attributable to Crown Holdings in the third quarter was $164 million compared to $177 million in the third quarter of 2017. Reported diluted earnings per share were $1.23 in the third quarter of 2018 compared to $1.32 in 2017. Adjusted diluted earnings per share increased to $1.71 over the $1.46 in 2017.

A reconciliation from net income and diluted earnings per share to adjusted net income and adjusted diluted earnings per share is provided below.

Nine Month Results
Net sales for the first nine months of 2018 increased to $8,417 million compared to $6,530 million in the first nine months of 2017 primarily due to the impact of the Signode acquisition, increased beverage can volumes, the pass through of higher material costs to customers and $187 million of favorable currency translation.


Page 1 of 10


News Release

Corporate Headquarters
770 Township Line Road
Yardley, PA 19067-4219
 
crownblacklogoa08.gif

Income from operations was $878 million in the first nine months of 2018 compared to $812 million in the prior year period. Segment income for the nine months increased to $1,049 million over the $873 million in 2017 reflecting the Signode acquisition.

Interest expense was $282 million for the first nine months of 2018 compared to $187 million in 2017 primarily due to higher outstanding debt from borrowings incurred to finance the Signode acquisition.                 
                   
Net income attributable to Crown Holdings in the first nine months of 2018 was $386 million compared to $412 million in the first nine months of 2017.  Reported diluted earnings per share were $2.88 compared to $3.02 in 2017.  Adjusted diluted earnings per share increased to $4.20 over the $3.39 in 2017. 

Outlook
The Company currently expects fourth quarter adjusted diluted earnings to be in the range of $0.97 to $1.02 per share.

The adjusted effective income tax rate for the full year of 2018 is expected to be between 25% and 26%. Adjusted free cash flow, as defined below, is currently expected to be approximately $625 million for 2018 and $775 million for 2019, unchanged from prior guidance.

Non-GAAP Measures
Segment income, adjusted free cash flow, adjusted net income, the adjusted effective tax rate and adjusted diluted earnings per share are not defined terms under U.S. generally accepted accounting principles (non-GAAP measures). Non-GAAP measures should not be considered in isolation or as a substitute for income from operations, net income, diluted earnings per share or cash flow data prepared in accordance with U.S. GAAP and may not be comparable to calculations of similarly titled measures by other companies.

The Company views segment income as the principal measure of the performance of its operations and adjusted free cash flow as the principal measure of its liquidity. The Company considers both of these measures in the allocation of resources. Adjusted free cash flow has certain limitations, however, including that it does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure. The amount of mandatory versus discretionary expenditures can vary significantly between periods. The Company believes that adjusted net income, the adjusted effective tax rate and adjusted diluted earnings per share are useful in evaluating the Company’s operations as these measures are adjusted for items that affect comparability between periods. Reconciliations of estimated adjusted diluted earnings per share for the fourth quarter and full year of 2018 to estimated diluted earnings per share on a GAAP basis are not provided in this release due to the unavailability of estimates of the following, the timing and magnitude of which the Company is unable to reliably forecast without unreasonable efforts, which are excluded from estimated adjusted diluted earnings per share and could have a significant impact on earnings per share on a GAAP basis: gains or losses on the sale of businesses or other assets, restructuring costs, asset impairment charges, acquisition related costs including fair value adjustments to inventory, asbestos-related charges, losses from early extinguishment of debt, the tax impact of the items above, and the impact of tax law changes or other tax matters. The Company believes that adjusted free cash flow provides a meaningful measure of liquidity and a useful basis for assessing the Company’s ability to fund its activities, including the financing of acquisitions, debt repayments, share repurchases or possible future dividends. Segment income, adjusted free cash flow, the adjusted effective tax rate, adjusted net income and adjusted diluted earnings per share are derived from the Company’s Consolidated Statements of Operations and Cash Flows and Consolidated Balance Sheets, as applicable, and reconciliations to segment income, adjusted free cash flow, the adjusted effective tax rate, adjusted net income and adjusted diluted earnings per share can be found within this release.

Conference Call
The Company will hold a conference call tomorrow, October 18, 2018 at 9:00 a.m. (EDT) to discuss this news release. Forward-looking and other material information may be discussed on the conference call. The dial-in numbers for the conference call are (630) 395-0194 or toll-free (888) 324-8108 and the access password is “packaging.” A live webcast of the call will be made available to the public on the internet at the Company’s website, www.crowncork.com. A replay of the conference call will be available for a one-week period ending at midnight on October 25. The telephone numbers for the replay are (203) 369-1045 or toll free (866) 439-3740.



Page 2 of 10


News Release

Corporate Headquarters
770 Township Line Road
Yardley, PA 19067-4219
 
crownblacklogoa08.gif

Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all other information in this press release consists of forward-looking statements. These forward-looking statements involve a number of risks, uncertainties and other factors, including the continuation of performance and market trends in 2018, including customer and consumer preference for beverage cans and increasing global beverage can demand; the Company’s ability to successfully complete and begin production at capacity expansion projects within expected timelines and budgets in Cambodia and Spain; the Company’s ability to successfully manage other projects; the Company’s ability to generate expected earnings and cash flow in 2018 and 2019; and the successful integration of Signode that may cause actual results to be materially different from those expressed or implied in the forward-looking statements. Important factors that could cause the statements made in this press release or the actual results of operations or financial condition of the Company to differ are discussed under the caption "Forward Looking Statements" in the Company's Form 10-K Annual Report for the year ended December 31, 2017 and in subsequent filings made prior to or after the date hereof. The Company does not intend to review or revise any particular forward-looking statement in light of future events.

Crown Holdings, Inc., through its subsidiaries, is a leading global supplier of rigid packaging products to consumer marketing companies, as well as transit and protective packaging products, equipment and services to a broad range of end markets. World headquarters are located in Yardley, Pennsylvania.

For more information, contact:
Thomas A. Kelly, Senior Vice President and Chief Financial Officer, (215) 698-5341
Thomas T. Fischer, Vice President, Investor Relations and Corporate Affairs, (215) 552-3720
Edward Bisno, Bisno Communications, (212) 717-7578



Unaudited Consolidated Statements of Operations, Balance Sheets, Statements of Cash Flows, Segment Information and Supplemental Data follow.




Page 3 of 10


News Release

Corporate Headquarters
770 Township Line Road
Yardley, PA 19067-4219
 
crownblacklogoa08.gif


Consolidated Statements of Operations (Unaudited)
(in millions, except share and per share data)

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017 (1)
 
2018
 
2017 (1)
Net sales
$
3,174

 
$
2,468

 
$
8,417

 
$
6,530

 
 
 
 
 
 
 
 
Cost of products sold
2,530

 
1,972

 
6,804

 
5,235

Depreciation and amortization
127

 
63

 
305

 
183

Selling and administrative expense
153

 
89

 
402

 
270

Restructuring and other
(1
)
 
16

 
28

 
30

Income from operations (2) 
365

 
328

 
878

 
812

 
 
 
 
 
 
 
 
Other pension and postretirement
(13
)
 
(19
)
 
(47
)
 
(43
)
Foreign exchange
(14
)
 

 
14

 
4

Earnings before interest and taxes
392

 
347

 
911

 
851

Interest expense
105

 
64

 
282

 
187

Interest income
(6
)
 
(4
)
 
(17
)
 
(10
)
Loss from early extinguishment of debt

 

 

 
7

Income before income taxes
293

 
287

 
646

 
667

Provision for income taxes
102

 
79

 
196

 
178

Equity earnings
2

 

 
3

 

Net income
193

 
208

 
453

 
489

Net income attributable to noncontrolling interests
(29
)
 
(31
)
 
(67
)
 
(77
)
Net income attributable to Crown Holdings
$
164

 
$
177

 
$
386

 
$
412

 
 
 
 
 
 
 
 
Earnings per share attributable to Crown
  Holdings common shareholders:
 
 
 
 


 


     Basic
$
1.23

 
$
1.32

 
$
2.89

 
$
3.03

     Diluted
$
1.23

 
$
1.32

 
$
2.88

 
$
3.02

 

 
 
 


 


Weighted average common shares outstanding:
 
 
 
 
 
 
 
     Basic
133,729,731

 
134,020,310

 
133,608,065

 
135,906,571

     Diluted
133,849,368

 
134,415,656

 
133,816,005

 
136,394,239

Actual common shares outstanding
135,190,167

 
134,274,620

 
135,190,167

 
134,274,620




(1) Prior year results have been restated to reflect new accounting guidance on the presentation of pension and postretirement expense in the statement of operations.

(2) A reconciliation from income from operations to segment income follows.

Page 4 of 10


News Release

Corporate Headquarters
770 Township Line Road
Yardley, PA 19067-4219
 
crownblacklogoa08.gif

Consolidated Supplemental Financial Data (Unaudited)
(in millions)
Reconciliation from Income from Operations to Segment Income
The Company views segment income, as defined below, as a principal measure of performance of its operations and for the allocation of resources. Segment income is defined by the Company as income from operations adjusted to exclude intangibles amortization charges, provisions for asbestos and restructuring and other, the impact of fair value adjustments to inventory acquired in an acquisition, and the timing impact of hedge ineffectiveness.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Income from operations
$
365

 
$
328

 
$
878

 
$
812

Intangibles amortization
51

 
9

 
103

 
29

Fair value adjustment to inventory (1) 


 
 
 
40

 
 
Provision for restructuring and other
(1
)
 
16

 
28

 
30

Impact of hedge ineffectiveness (1)


 
(1
)
 

 
2

Segment Income
$
415

 
$
352

 
1,049

 
873


(1) Included in cost of products sold

Segment Information
Net Sales
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Americas Beverage
$
872

 
$
763

 
$
2,478

 
$
2,166

European Beverage
418

 
428

 
1,194

 
1,133

European Food
623

 
639

 
1,565

 
1,477

Asia Pacific
321

 
300

 
990

 
865

Transit Packaging
585

 


 
1,205

 


     Total reportable segments
2,819

 
2,130

 
7,432

 
5,641

Non-reportable segments (2)
355

 
338

 
985

 
889

     Total net sales
$
3,174

 
$
2,468

 
$
8,417

 
$
6,530


Segment Income (3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Americas Beverage
$
125

 
$
129

 
$
336

 
$
342

European Beverage
66

 
77

 
180

 
198

European Food
90

 
100

 
231

 
222

Asia Pacific
46

 
40

 
137

 
124

Transit Packaging
81

 


 
175

 


     Total reportable segments
408

 
346

 
1,059

 
886

Non-reportable segments (2)
40

 
39

 
102

 
101

Corporate and other unallocated items
(33
)
 
(33
)
 
(112
)
 
(114
)
     Total segment income
$
415

 
$
352

 
$
1,049

 
$
873


(2) Includes the Company's food can and closures businesses in North America, aerosol can businesses in North America and Europe, promotional packaging business in Europe, and tooling and equipment operations in the U.S. and United Kingdom.

(3) Prior year segment income has been restated to reflect new accounting guidance on the presentation of pension and postretirement expense and the Company’s revised policy to exclude intangibles amortization charges from segment income. A reconciliation from 2017 segment income to amounts previously reported is included below.

Page 5 of 10


News Release

Corporate Headquarters
770 Township Line Road
Yardley, PA 19067-4219
 
crownblacklogoa08.gif

Consolidated Supplemental Data (Unaudited)
(in millions, except per share data)

Reconciliation from Net Income and Diluted Earnings Per Share to Adjusted Net Income and Adjusted Diluted Earnings Per Share

The following table reconciles reported net income and diluted earnings per share attributable to the Company to adjusted net income and adjusted diluted earnings per share, as used elsewhere in this release.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Net income/diluted earnings per share
   attributable to Crown Holdings, as reported
$
164

 
$
1.23

 
$
177

 
$
1.32

 
$
386

 
$
2.88

 
$
412

 
$
3.02

Intangibles amortization (1)
51

 
0.38

 
9

 
0.07

 
103

 
0.77

 
29

 
0.21

     Fair value adjustment to inventory (2)

 

 
 
 
 
 
40

 
0.30

 
 
 
 
     Restructuring and other (3)
(1
)
 
(0.01
)
 
12

 
0.09

 
28

 
0.21

 
26

 
0.19

     Impact of hedge ineffectiveness (4) 
 
 
 
 
(1
)
 
(0.01
)
 
 
 
 
 
2

 
0.01

Acquisition costs (5)
 
 
 
 
 
 
 
 
24

 
0.18

 
 
 
 
     Loss from early extinguishment of debt (6)
 
 
 
 


 

 
 
 
 
 
7

 
0.05

     Income taxes and noncontrolling interests (7)
15

 
0.11

 
(1
)
 
(0.01
)
 
(19
)
 
(0.14
)
 
(14
)
 
(0.09
)
Adjusted net income/diluted earnings per share
$
229

 
$
1.71

 
$
196

 
$
1.46

 
$
562

 
$
4.20

 
$
462

 
$
3.39

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective tax rate as reported
34.8
%
 
 
 
27.5
%
 
 
 
30.3
%
 
 
 
26.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted effective tax rate (8)
25.4
%
 
 
 
26.1
%
 
 
 
25.4
%
 
 
 
26.3
%
 
 
Adjusted net income, adjusted diluted earnings per share and the adjusted effective tax rate are non-GAAP measures and are not meant to be considered in isolation or as a substitute for net income, diluted earnings per share and effective tax rates determined in accordance with U.S. generally accepted accounting principles. The Company believes these non-GAAP measures provide useful information to evaluate the performance of the Company’s ongoing business.

(1)
In the third quarter and first nine months of 2018, the Company recorded charges of $51 million ($38 million net of tax) and $103 million ($76 million net of tax) for intangibles amortization arising from acquisitions, including its acquisition of Signode in the second quarter of 2018.  In the third quarter and first nine months of 2017, the Company recorded charges of $9 million ($7 million net of tax) and $29 million ($21 million net of tax) for intangibles amortization.

(2)
In the second quarter of 2018, the Company recorded a charge of $40 million ($29 million net of tax) in cost of products sold for fair value adjustment related to the sale of inventory acquired in its acquisition of Signode.

(3)
In the third quarter and first nine months of 2018, the Company recorded net restructuring and other charges of $12 million ($10 million net of tax) and $34 million ($31 million net of tax) including $22 million of transaction costs for the nine months in connection with its acquisition of Signode.  In the third quarter and first nine months of 2017, the Company recorded restructuring and other charges of $3 million ($3 million net of tax) and $23 million ($18 million net of tax) primarily due to the settlement of a litigation matter related to Mivisa that arose prior to its acquisition by Crown in 2014, and $4 million of curtailment gain reported in other pension and postretirement.

In the third quarter and first nine months of 2018, the Company recorded gains of $13 million ($11 million net of tax) and $6 million ($5 million net of tax) for asset sales and impairments.  In the third quarter and first nine months of 2017, the Company recorded charges of $9 million ($9 million net of tax) and $3 million ($4 million net of tax) for asset sales and impairments.

(4)
In the third quarter and first nine months of 2017, the Company recorded benefits of $1 million (less than $1 million net of tax) and charges of $2 million ($2 million net of tax) in cost of products sold related to the timing impact of hedge ineffectiveness caused primarily by volatility in the metal premium component of aluminum prices.

(5)
In the first quarter of 2018, the Company recorded a charge of $15 million ($10 million net of tax) for net losses arising from its hedge of the U.S. dollar purchase price of its acquisition of Signode.  Also in the first quarter, the Company incurred net charges of $9 million ($7 million net of tax) for pre-acquisition interest carrying costs on borrowings to finance the acquisition.  

(6)
In the second quarter of 2017, the Company recorded a charge of $7 million ($5 million net of tax) for the write off of deferred financing fees in connection with the refinancing of its term loan and revolving credit facilities.

(7)
In the third quarter and first nine months of 2018, the Company recorded income tax and noncontrolling interest benefits of $13 million and $47 million related to the items described above. Also in the third quarter of 2018, the Company recorded charges of $28 million related to taxes on the distribution of foreign earnings, including an adjustment for the impact of the “Tax Cut and Jobs Act”. In the third quarter and first nine months of 2017, the Company recorded income tax benefits of $1 million and $14 million related to the items described above.

(8)
Income tax effects on adjusted net income were calculated using the applicable tax rates of the underlying jurisdictions.

Page 6 of 10


News Release

Corporate Headquarters
770 Township Line Road
Yardley, PA 19067-4219
 
crownblacklogoa08.gif



Consolidated Balance Sheets (Condensed & Unaudited)
(in millions)
 
 
 
 
September 30,
2018
 
2017
Assets
 
 
 
Current assets
 
 
 
   Cash and cash equivalents
$
298

 
$
374

   Receivables, net
1,968

 
1,098

   Inventories
1,639

 
1,430

   Prepaid expenses and other current assets
193

 
251

        Total current assets
4,098

 
3,153

 

 

Goodwill and intangible assets, net
6,753

 
3,562

Property, plant and equipment, net
3,722

 
3,066

Other non-current assets
762

 
715

        Total
$
15,335

 
$
10,496

 

 

 

 

Liabilities and equity

 

Current liabilities

 

   Short-term debt
$
53

 
$
50

   Current maturities of long-term debt
89

 
68

   Accounts payable and accrued liabilities
3,459

 
2,919

        Total current liabilities
3,601

 
3,037

 

 

Long-term debt, excluding current maturities
8,928

 
5,114

Other non-current liabilities
1,496

 
1,233

 

 

Noncontrolling interests
369

 
314

Crown Holdings shareholders' equity
941

 
798

Total equity
1,310

 
1,112

        Total
$
15,335

 
$
10,496











Page 7 of 10


News Release

Corporate Headquarters
770 Township Line Road
Yardley, PA 19067-4219
 
crownblacklogoa08.gif

Consolidated Statements of Cash Flows (Condensed & Unaudited)
(in millions)
Nine months ended September 30,
2018
 
2017
 
 
 
 
Cash flows from operating activities
 
 
 
   Net income
$
453

 
$
489

   Depreciation and amortization
305

 
183

   Restructuring and other
28

 
30

   Pension expense
8

 
14

   Pension contributions
(14
)
 
(46
)
   Stock-based compensation
17

 
16

   Working capital changes and other
(1,029
)
 
(956
)
          Net cash used for operating activities (1)
(232
)
 
(270
)
 
 
 
 
Cash flows from investing activities
 
 
 
   Capital expenditures
(305
)
 
(282
)
   Beneficial interest in transferred receivables
490

 
758

   Acquisition of business, net of cash acquired
(3,912
)
 

   Proceeds from sale of assets
27

 

   Other
(19
)
 
(12
)
          Net cash provided by/(used for) investing activities
(3,719
)
 
464

 
 
 
 
Cash flows from financing activities
 
 
 
   Net change in debt
3,999

 
(24
)
   Dividends paid to noncontrolling interests
(18
)
 
(68
)
   Common stock repurchased
(4
)
 
(339
)
   Debt issue costs
(70
)
 
(15
)
   Other, net
(5
)
 
46

          Net cash provided by/(used for) financing activities
3,902

 
(400
)
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
(32
)
 
16

 

 

Net change in cash and cash equivalents
(81
)
 
(190
)
Cash and cash equivalents at January 1
435

 
576

 

 

Cash and cash equivalents at September 30 (2)
$
354

 
$
386



(1) Adjusted free cash flow is defined by the Company as net cash used for operating activities plus beneficial interest in transferred receivables less capital expenditures and certain other items. A reconciliation from net cash used for operating activities to adjusted free cash flow for the three and nine months ended September 30, 2018 and 2017 follows.

(2)
Cash and cash equivalents includes $56 and $12 of restricted cash at September 30, 2018 and 2017.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Net cash used for operating activities
$
260

 
$
205

 
$
(232
)
 
$
(270
)
Beneficial interest in transferred receivables (3)
155

 
251

 
490

 
758

Acquisition costs

 

 
22

 

Adjusted cash used for operating activities
415

 
456

 
280

 
488

Capital expenditures
(105
)
 
(82
)
 
(305
)
 
(282
)
Adjusted free cash flow
$
310

 
$
374

 
$
(25
)
 
$
206


(3) Prior year cash flow has been restated to reflect new accounting guidance related to the classification of certain cash receipts associated with the Company’s receivable securitization programs. Certain receipts previously reported in cash from operations are now reported in cash from investing activities as “Beneficial interest in transferred receivables”.

Page 8 of 10


News Release

Corporate Headquarters
770 Township Line Road
Yardley, PA 19067-4219
 
crownblacklogoa08.gif


Consolidated Supplemental Data (Unaudited)
(in millions, except per share data)



Reconciliation of 2017 Segment Income to Amounts Previously Reported
 
 
 
 
 
 
 
 
 
Third Quarter 2017 Segment Income (1)
 
 
 
 
 
 
 
 
 
 
As
 
 
 
 
 
As
 
 
Previously
 
Pension and
 
Intangibles
 
Currently
Segment
 
Reported
 
Postretirement
 
Amortization
 
Reported
Americas Beverage
 
$
131

 
$
(6
)
 
$
4

 
$
129

European Beverage
 
78

 
(1
)
 


 
77

European Food
 
96

 

 
4

 
100

Asia Pacific
 
40

 

 


 
40

Non-reportable
 
43

 
(5
)
 
1

 
39

Corporate and unallocated
 
(30
)
 
(3
)
 


 
(33
)
Total segment income
 
$
358

 
$
(15
)
 
$
9

 
$
352

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
YTD 2017 Segment Income (1)
 
 
 
 
 
 
 
 
 
 
As
 
 
 
 
 
As
 
 
Previously
 
Pension and
 
Intangibles
 
Currently
Segment
 
Reported
 
Postretirement
 
Amortization
 
Reported
Americas Beverage
 
$
345

 
$
(18
)
 
$
15

 
$
342

European Beverage
 
201

 
(3
)
 


 
198

European Food
 
210

 

 
12

 
222

Asia Pacific
 
124

 

 


 
124

Non-reportable
 
113

 
(14
)
 
2

 
101

Corporate and unallocated
 
(110
)
 
(4
)
 


 
(114
)
Total segment income
 
$
883

 
$
(39
)
 
$
29

 
$
873



(1) Prior year segment income has been restated to reflect new accounting guidance on the presentation of pension and postretirement expense and the Company's revised policy to exclude intangibles amortization charges from segment income.



Page 9 of 10


News Release

Corporate Headquarters
770 Township Line Road
Yardley, PA 19067-4219
 
crownblacklogoa08.gif


Consolidated Supplemental Data (Unaudited)
(in millions, except per share data)



Comparative Results for Signode


 
Revenue
 
Segment Income
 
Depreciation (1)
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Q1
$
588

 
$
526

 
$
79

 
$
76

 
$
13

 
$
12

Q2
620

 
575

 
94

 
80

 
14

 
13

Q3
585

 
565

 
81

 
82

 
15

 
12

Q4
 
 
566

 
 
 
82

 
 
 
13

 
 
 
$
2,232

 
 
 
$
320

 
 
 
$
50



(1)
Amount of depreciation expense included in segment income, including acquisition step-up depreciation in 2018.



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