Segment Data (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Adjusted EBITA by Reportable Segment to Consolidated Net Income (Loss)

The following tables reflect our segment information and Corporate, the segment recast for the prior years, and reconciles Adjusted EBITDA for reportable segments to consolidated net income (loss) attributable to Covetrus:


	At and For the Year Ended December 31, 2020
	North America		Europe		APAC & Emerging Markets		Corporate		Eliminations		Total
Net sales	$	2,377	$	1,571	$	402	$	—	$	(11)	$	4,339
Adjusted EBITDA	$	187	$	72	$	28	$	(61)	$	—	$	226
Depreciation and amortization	$	144	$	17	$	5	$	—	$	—	$	166
Income tax benefit (expense)	$	19	$	(11)	$	(6)	$	5	$	—	$	7
Total assets	$	3,077	$	713	$	188	$	1,415	$	(1,897)	$	3,496
Expenditures for long-lived assets	$	41	$	11	$	3	$	3	$	—	$	58

Reconciliation of Net Income (Loss) Attributable to Covetrus to Adjusted EBITDA:
Net income (loss) attributable to Covetrus											$	(19)
Plus: Depreciation and amortization											166
Plus: Interest expense, net											47
Less: Income tax (benefit) expense											(7)
Earnings (loss) before interest, taxes, depreciation, and amortization											187
Plus: Share-based compensation											40
Plus: Strategic consulting											20
Plus: Transaction costs (a)											8
Plus: Separation programs and executive severance											11
Plus: IT infrastructure											4
Plus: Formation of Covetrus (b)											19
Plus: Capital structure											2
Plus: Equity method investments and non-consolidated affiliates (c)											2
Plus: Operating lease right-of-use asset impairment											8
Plus: France managed exit (d)											7
Less: Other items, net (e)											(82)
Adjusted EBITDA											226

(a) Includes legal, accounting, tax, and other professional fees incurred in connection with acquisitions and divestitures
(b) Includes professional and consulting fees, duplicative costs associated with transition service agreements, and other costs incurred in connection with the separation from Former Parent and establishing Covetrus as an independent public company
(c) Includes the proportionate share of the adjustments to EBITDA of consolidated and non-consolidated affiliates where Covetrus ownership is less than 100%
(d) Includes $6 million of severance and $1 million of other costs. See Note 4 - Divestitures and Equity Method Investments for further discussion
(e) Includes a pre-tax gain of $73 million from the sale of scil, a $6 million mark-to-market adjustment for our Distrivet options, and a $1 million gain on the deconsolidation of SAHS. See Note 4 - Divestitures and Equity Method Investments


	At and For the Year Ended December 31, 2019
	North America		Europe		APAC & Emerging Markets		Corporate		Eliminations		Total
Net sales	$	2,111	$	1,509	$	368	$	—	$	(12)	$	3,976
Adjusted EBITDA	$	153	$	68	$	18	$	(39)	$	—	$	200
Depreciation and amortization	$	131	$	18	$	6	$	—	$	—	$	155
Income tax benefit (expense)	$	47	$	(3)	$	(4)	$	6	$	—	$	46
Total assets	$	2,939	$	726	$	137	$	783	$	(1,226)	$	3,359
Expenditures for long-lived assets	$	23	$	10	$	1	$	5	$	—	$	39

Reconciliation of Net Income (Loss) Attributable to Covetrus to Adjusted EBITDA:
Net income (loss) attributable to Covetrus											$	(980)
Plus: Depreciation and amortization											155
Plus: Interest expense, net											53
Less: Income tax (benefit) expense											(46)
Earnings (loss) before interest, taxes, depreciation, and amortization											(818)
Plus: Share-based compensation											46
Plus: Strategic consulting											2
Plus: Transaction costs (a)											2
Plus: Formation of Covetrus (b)											31
Plus: Separation programs and executive severance											11
Plus: Carve-out operating expenses											5
Plus: IT infrastructure											6
Plus: Goodwill impairment											938
Less: Equity method investments and non-consolidated affiliates (c)											(4)
Less: Other items, net (d)											(19)
Adjusted EBITDA											$	200

(a) Includes legal, accounting, tax, and other professional fees incurred in connection with acquisitions and divestitures
(b)Includes professional and consulting fees, duplicative costs associated with transition service agreements, and other costs incurred in connection with the separation from Former Parent and establishing Covetrus as an independent public company
(c) Includes the proportionate share of the adjustments to EBITDA of consolidated and non-consolidated affiliates where Covetrus ownership is less than 100%
(d) Includes $15 million of gains associated with acquisitions in France and Romania, $2 million gain on legacy investment, and $1 million government grant income


	At and For the Year Ended December 29, 2018
	North America		Europe		APAC & Emerging Markets		Corporate		Eliminations		Total
Net sales	$	1,939	$	1,463	$	387	$	—	$	(11)	$	3,778
Adjusted EBITDA	$	157	$	75	$	19	$	(32)	$	—	$	219
Depreciation and amortization	$	41	$	17	$	6	$	—	$	—	$	64
Income tax expense	$	(18)	$	(15)	$	(3)	$	(1)	$	—	$	(37)
Total assets	$	1,302	$	702	$	182	$	10	$	(4)	$	2,192
Expenditures for long-lived assets	$	14	$	7	$	1	$	—	$	—	$	22

Reconciliation of Net Income (Loss) Attributable to Covetrus to Adjusted EBITDA:
Net income (loss) attributable to Covetrus											$	101
Plus: Depreciation and amortization											64
Plus: Interest expense, net											2
Plus: Income tax (benefit) expense											37
Earnings (loss) before interest, taxes, depreciation, and amortization											204
Plus: Share-based compensation											7
Plus: Separation programs and executive severance											9

Less: Equity method investments and non-consolidated affiliates											(1)

Adjusted EBITDA											$	219

See Note 5 - Revenue from Contracts with Customers for our revenue disaggregated by major product category and reportable segment.