Segments

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segments

19. Segments

Management monitors the operating results of its reportable segments separately for the purpose of making decisions about resource allocation and performance assessment. Management evaluates performance on the basis of Adjusted EBITDA. Adjusted EBITDA is defined as consolidated net income (loss), plus the sum of: net loss (income) from discontinued operations, interest expense, net of interest income; income tax expense (benefit); depreciation; amortization; impairment charges; loss on extinguishment of debt; other operating expenses, net (see “Note 6: Other operating expenses, net”); and other expense, net (see “Note 8: Other expense, net”). For 2020, Adjusted EBITDA also includes an adjustment to remove a Brazil VAT charge (see “Note 17: Commitments and contingencies” for more information).

Transfer prices between reportable segments are set on an arms-length basis in a similar manner to transactions with third parties. Corporate operating expenses that directly benefit segments have been allocated to the reportable segments. Allocable operating expenses are identified through a review process by management. These costs are allocated to the reportable segments on a basis that reasonably approximates the use of services. This is typically measured on a weighted distribution of margin, asset, headcount or time spent.

Financial information for the Company’s reportable segments is as follows:

(in millions)	USA		EMEA		Canada		LATAM		Other/ Eliminations (1)		Consolidated
	Three months ended June 30, 2020
External customers	$	1,169.4	$	409.6	$	331.5	$	98.7	$	—	$	2,009.2
Inter-segment	23.0		0.9		0.7		—		(24.6)		—
Total net sales	$	1,192.4	$	410.5	$	332.2	$	98.7	$	(24.6)	$	2,009.2
Adjusted EBITDA	$	95.2	$	39.7	$	25.2	$	11.0	$	(7.9)	$	163.2
Long-lived assets (2)	$	824.8	$	176.4	$	185.8	$	28.9	$	40.3	$	1,256.2

(in millions)	USA		EMEA		Canada		LATAM		Other/ Eliminations (1)		Consolidated
	Three months ended June 30, 2019
External customers	$	1,605.3	$	457.9	$	404.8	$	116.6	$	—	$	2,584.6
Inter-segment	23.4		1.0		1.7		—		(26.1)		—
Total net sales	$	1,628.7	$	458.9	$	406.5	$	116.6	$	(26.1)	$	2,584.6
Adjusted EBITDA	$	127.6	$	38.2	$	33.8	$	9.4	$	(7.9)	$	201.1
Long-lived assets (2)	$	892.8	$	185.4	$	188.5	$	34.9	$	29.3	$	1,330.9

(in millions)	USA		EMEA		Canada		LATAM		Other/ Eliminations (1)		Consolidated
	Six months ended June 30, 2020
External customers	$	2,526.9	$	869.9	$	617.3	$	206.3	$	—	$	4,220.4
Inter-segment	48.7		1.7		1.5		—		(51.9)		—
Total net sales	$	2,575.6	$	871.6	$	618.8	$	206.3	$	(51.9)	$	4,220.4
Adjusted EBITDA	$	191.8	$	80.0	$	52.5	$	19.3	$	(18.8)	$	324.8
Long-lived assets (2)	$	824.8	$	176.4	$	185.8	$	28.9	$	40.3	$	1,256.2

(in millions)	USA		EMEA		Canada		LATAM		Other/ Eliminations (1)		Consolidated
	Six months ended June 30, 2019
External customers	$	2,912.5	$	941.6	$	678.6	$	211.9	$	—	$	4,744.6
Inter-segment	48.3		2.0		2.8		—		(53.1)		—
Total net sales	$	2,960.8	$	943.6	$	681.4	$	211.9	$	(53.1)	$	4,744.6
Adjusted EBITDA	$	224.7	$	80.3	$	55.5	$	15.1	$	(14.4)	$	361.2
Long-lived assets (2)	$	892.8	$	185.4	$	188.5	$	34.9	$	29.3	$	1,330.9

(1)Other/Eliminations represents the elimination of intersegment transactions as well as unallocated corporate costs consisting of costs specifically related to parent company operations that do not directly benefit segments, either individually or collectively.

(2)Long-lived assets consist of property, plant and equipment, net and operating lease assets.

The following is a reconciliation of net income (loss) to Adjusted EBITDA for the three and six months ended June 30, 2020 and 2019:

	Three months ended June 30,				Six months ended June 30,
(in millions)	2020		2019		2020		2019
Net income (loss)	$	1.8	$	16.3	$	57.7	$	(47.6)
Net loss (income) from discontinued operations	—		0.7		—		(5.4)
Depreciation	40.4		39.7		82.1		72.9
Amortization	14.8		18.6		30.6		33.0
Interest expense, net	29.9		37.9		58.0		72.1
Income tax expense (benefit)	11.6		18.5		11.3		(4.8)
Other operating expenses, net	43.6		63.8		47.7		228.6
Other expense, net	3.9		5.6		9.8		11.7
Impairment charges	16.9		—		16.9		—
Loss on sale of business	—		—		8.6		—
Loss on extinguishment of debt	—		—		1.8		0.7
Brazil VAT charge	0.3		—		0.3		—
Adjusted EBITDA	$	163.2	$	201.1	$	324.8	$	361.2