Note 19—Segments

The Company operates its business along three operating segments, which are grouped on the basis of geography: North America, Europe and Asia. The Company believes this method of segment reporting reflects both the way its business segments are managed and the way the performance of each segment is evaluated. The three segments consist of similar operating activities as each segment produces similar products.

The Company, including its Chief Operating Decision Maker, evaluates performance based on several factors, of which the primary financial measure is Adjusted EBITDA. Adjusted EBITDA is defined as segment net income (loss) before income taxes, interest, depreciation, amortization, restructuring, transaction, stock-based compensation and certain other costs that do not related to the segment’s ongoing operations. A reconciliation of Adjusted EBITDA to consolidated net income (loss) is provided in the tables below. Inter-segment sales and transfers, which were not material, are accounted for as if the sales or transfers were to third parties, at current market prices.


	Successor						Predecessor
	Fiscal Year Ended				Period from August		Period from July 1
	June 30,				15, 2013 through		2013 through
	2016		2015		June 30, 2014		August 14, 2013
Net Sales
North America	$	784,453	$	737,888	$	452,031	$	58,728
Europe		785,997		820,391		354,396		15,353
Asia		90,978		59,361		7,786		—
Total Net Sales	$	1,661,428	$	1,617,640	$	814,213	$	74,081

Depreciation and Amortization
North America	$	60,281	$	59,626	$	44,600	$	2,915
Europe		64,703		68,663		28,124		857
Asia		4,016		3,414		482		—
Total Depreciation and Amortization	$	129,000	$	131,703	$	73,206	$	3,772

Operating Income (Loss)
North America	$	28,503	$	18,317	$	(37,181)	$	(24,524)
Europe		44,085		46,442		8,711		2,188
Asia		11,507		6,218		186		—
Total Operating Income (Loss)	$	84,095	$	70,977	$	(28,284)	$	(22,336)

Adjusted EBITDA
North America	$	110,204	$	97,001	$	71,290	$	7,390
Europe		128,133		126,350		46,816		3,081
Asia		15,966		7,611		684		—
Total Adjusted EBITDA	$	254,303	$	230,962	$	118,790	$	10,471


	Successor
	For the Fiscal Year Ended June 30,
	2016		2015
Capital Expenditures
North America	$	20,881	$	19,407
Europe		32,158		38,189
Asia		5,915		1,939
Total Capital Expenditures	$	58,954	$	59,535


	Successor
	As of June 30,		As of June 30,
	2016		2015
Total Assets
North America	$	754,418	$	904,719
Europe		883,361		866,214
Asia		69,811		100,310
Total Assets	$	1,707,590	$	1,871,243

The Company’s product offerings consist of print-based specialty packaging products across the consumer, healthcare and multi-media end markets. The Company produces similar products including labels, cartons, inserts and rigid packaging (the “Specific Products”) in all of the geographies it serves, and in all of the end markets it serves. These Specific Products represent one product line. The nature of a specific carton, label, insert or rigid package is similar from end market to end market and geography to geography. Oftentimes, the Specific Products sold to the customer are bundled, including both label and carton, or label, carton and insert or any combination thereof. The following are summaries of gross sales estimated by product category and of net sales estimated by end markets for the respective periods:


	Successor						Predecessor
	Fiscal Year Ended				Period from August		Period from July 1
	June 30,				15, 2013 through		2013 through
	2016		2015		June 30, 2014		August 14, 2013
Premium Folding Cartons	$	1,091,063	$	1,051,028	$	513,253	$	52,828
Inserts		238,969		268,000		138,691		9,246
Labels		138,284		126,240		79,872		8,224
Rigid Packaging		111,972		70,463		10,786		—
Other Consumer Products		204,695		216,372		127,270		10,088
Total		1,784,983		1,732,103		869,872		80,386
Sales Reserves and Eliminations		(123,555)		(114,463)		(55,659)		(6,305)
Total Net Sales	$	1,661,428	$	1,617,640	$	814,213	$	74,081


	Successor						Predecessor
	Fiscal Year Ended				Period from August		Period from July 1
	June 30,				15, 2013 through		2013 through
	2016		2015		June 30, 2014		August 14, 2013
Consumer	$	840,613	$	815,882	$	367,895	$	26,094
Healthcare		640,348		643,982		330,018		20,929
Multi-Media		180,467		157,776		116,300		27,058
Total Net Sales	$	1,661,428	$	1,617,640	$	814,213	$	74,081

The following is a reconciliation of EBITDA and Adjusted EBITDA to consolidated net income.


	Successor						Predecessor
	Fiscal Year Ended				Period from August		Period from July 1
	June 30,				15, 2013 through		2013 through
	2016		2015		June 30, 2014		August 14, 2013
Consolidated net income	$	1,327	$	7,026	$	(51,648)	$	(23,685)
Depreciation and amortization		129,000		131,703		73,206		3,772
Interest expense		64,543		75,437		43,215		3,991
Income tax expense (benefit)		7,855		(1,880)		(19,481)		(15,621)
EBITDA		202,725		212,286		45,292		(31,543)

Transaction costs		3,838		13,630		38,844		28,370
Stock based and deferred compensation		26,769		5,722		1,534		125
Debt extinguishment charges		3,967		1,019		—		14,042
Purchase accounting adjustments		966		3,094		10,836		—
Restructuring related costs		10,684		6,419		10,037		3
Loss on sale of fixed assets		1,410		584		2,278		(96)
Foreign currency (gains) losses		5,182		(12,171)		(777)		(364)
Multiemployer plan exits		—		—		9,250		(676)
Other adjustments to EBITDA		(1,238)		379		1,496		610

Adjusted EBITDA	$	254,303	$	230,962	$	118,790	$	10,471