Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2020

	Reynolds Cooking & Baking		Hefty Waste & Storage		Hefty Tableware		Presto Products		Segment Total		Unallocated⁽¹⁾			Total
Three Months Ended June 30, 2020	(in millions)
Net revenues	$	295	$	201	$	186	$	137	$	819	$	3		$	822
Intersegment revenues		—		2		—		1		3		(3	)		—
Total segment net revenues		295		203		186		138		822		—			822
Adjusted EBITDA		66		63		43		28		200
Depreciation and amortization		4		3		4		5		16		8			24

	Reynolds Cooking & Baking		Hefty Waste & Storage		Hefty Tableware		Presto Products		Segment Total		Unallocated⁽¹⁾			Total
Three Months Ended June 30, 2019	(in millions)
Net revenues	$	275	$	178	$	207	$	131	$	791		—		$	791
Intersegment revenues		—		5		—		—		5		(5	)		—
Total segment net revenues		275		183		207		131		796		(5	)		791
Adjusted EBITDA		49		52		51		24		176
Depreciation and amortization		4		3		1		4		12		9			21

	Reynolds Cooking & Baking		Hefty Waste & Storage		Hefty Tableware		Presto Products		Segment Total		Unallocated⁽¹⁾			Total
Six Months Ended June 30, 2020	(in millions)
Net revenues	$	538	$	390	$	364	$	264	$	1,556		(4	)	$	1,552
Intersegment revenues		—		5		—		1		6		(6	)		—
Total segment net revenues		538		395		364		265		1,562		(10	)		1,552
Adjusted EBITDA		106		118		78		51		353
Depreciation and amortization		10		7		7		9		33		15			48

	Reynolds Cooking & Baking		Hefty Waste & Storage		Hefty Tableware		Presto Products		Segment Total		Unallocated⁽¹⁾			Total
Six Months Ended June 30, 2019	(in millions)
Net revenues	$	488	$	339	$	371	$	258	$	1,456		—		$	1,456
Intersegment revenues		—		9		—		—		9		(9	)		—
Total segment net revenues		488		348		371		258		1,465		(9	)		1,456
Adjusted EBITDA		67		91		86		44		288
Depreciation and amortization		8		6		4		10		28		14			42

Summary of Segment Assets

Segment assets consisted of the following:

	Reynolds Cooking & Baking		Hefty Waste & Storage		Hefty Tableware		Presto Products		Segment Total		Unallocated⁽¹⁾		Total
	(in millions)
As of June 30, 2020	$	397	$	227	$	146	$	187	$	957	$	3,759	$	4,716
As of December 31, 2019		395		251		137		182		965		3,195		4,160

(1)

Unallocated includes the elimination of intersegment revenues, other revenue adjustments and certain corporate costs, depreciation and amortization and assets not allocated to segments. Unallocated assets are comprised of cash, accounts receivable, other receivables, entity-wide property, plant and equipment, entity-wide operating lease right-of-use assets, goodwill, intangible assets, related party receivables and other assets.

Reconciliation of Segment Adjusted EBITDA to GAAP Income Before Income Taxes

The following table presents a reconciliation of segment Adjusted EBITDA to GAAP income before income taxes:

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	(in millions)						(in millions)
Segment Adjusted EBITDA	$	200		$	176		$	353		$	288
Corporate / unallocated expenses		(7	)		(7	)		(25	)		(9	)
		193			169			328			279
Adjustments to reconcile to GAAP income before income taxes
Depreciation and amortization		(24	)		(21	)		(48	)		(42	)
Interest expense, net		(17	)		(67	)		(44	)		(135	)
Factoring discount		—			(5	)		—			(10	)
Allocated related party management fee		—			(2	)		—			(4	)
IPO and separation-related costs		(7	)		(1	)		(21	)		(1	)
Unrealized gains (losses) on derivatives		3			1			(1	)		8
Other		—			—			(1	)		1
Consolidated GAAP income before income taxes	$	148		$	74		$	213		$	96

Summary of Net Revenues by Product Line

Net revenues by product line are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020			2019
	(in millions)				(in millions)
Waste and storage products ⁽¹⁾	$	338	$	309	$	654		$	597
Cooking products		295		275		538			488
Tableware		186		207		364			371
Unallocated		3		—		(4	)		—
Net revenues	$	822	$	791	$	1,552		$	1,456

(1)	Waste and storage products are comprised of our Hefty Waste & Storage and Presto Products segments.