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8-K/A - FORM 8-K/A - SEALED AIR CORP/DE | y89224ae8vkza.htm |
Exhibit 99.1
SEALED AIR REPORTS FOURTH QUARTER AND FULL YEAR 2010 RESULTS
Full Year 2010 EPS of $1.44 and Adjusted EPS of $1.60
Fourth Quarter 2010 EPS of $0.29 and Adjusted EPS of $0.46
Fourth Quarter 2010 Volumes Increased 7%
Fourth Quarter 2010 EPS of $0.29 and Adjusted EPS of $0.46
Fourth Quarter 2010 Volumes Increased 7%
Fourth Quarter and Full Year 2010 Highlights
| Fourth quarter volumes increased in all segments and all regions |
| Full year volumes increased 5% with growth achieved in all segments and regions |
| Full year free cash flow of $342 million |
ELMWOOD PARK, N.J., Monday, January 24, 2011 For full year 2010, Sealed Air Corporation
(NYSE:SEE) reported diluted net earnings per common share (EPS) of $1.44, compared with $1.35 in
2009. Adjusted EPS was $1.60 in 2010, compared with $1.44 in 2009. (See attached supplements for
non-GAAP reconciliations and information.) Sales increased 6% to $4.49 billion. Gross profit
increased 3% to $1.25 billion while operating profit increased 9% to $535 million. The 2010
adjusted operating profit was $549 million, or 12.2% of net sales. This compares with $509
million, or 12.0%, in 2009.
Fourth quarter 2010 EPS was $0.29, compared with $0.37 in 2009, primarily due to the loss on
debt redemption of our 12% Senior Notes. Adjusted EPS increased 15% to $0.46, compared with $0.40
in 2009. Sales increased 6% to $1.21 billion. Fourth quarter gross profit held relatively steady
at $332 million, while operating profit increased 9% to $135 million. The 2010 adjusted operating
profit was $145 million, or 12.0% of net sales. This compares with $132 million, or 11.5%, in
2009.
Commenting on our operating performance, William V. Hickey, President and Chief Executive
Officer, stated:
As we conclude Sealed Airs 50th anniversary year and look ahead to 2011, I am
pleased with the good volume momentum that our businesses achieved in all regions this year,
resulting in solid fourth quarter volume performance. During the year, we remained focused on
growth by successfully launching over 55 new solutions, including expanding our service-based
offerings, and by completing four early-stage strategic investments.
In 2010, we achieved approximately $100 million of productivity benefits by leveraging our
World Class Manufacturing principles, implementing new, patented technologies, and successfully
completing our Global Manufacturing Strategy program. These productivity gains, as well as tight
control of expenses and pricing actions, contributed to our steady profitability performance
despite the timing of price/cost spreads.
1
All of these achievements contributed to solid free cash flow, which enabled us to invest in
our extensive product pipeline, expand our geographic footprint and return $90 million to
shareholders in dividend payments and share buybacks. Today, we remain well positioned to fund
near term obligations and continue to invest in our future.
Fourth Quarter Segment Review
The following year-over-year net sales discussions exclude the impact of currency translation,
which we define as constant dollar, a non-U.S. GAAP measure. The balance of the discussion is
presented on a U.S. GAAP basis. See Components of Change in Net Sales Business Segments and
Other, attached, for further details.
In the following segment discussions, the 2010 fourth quarter operating profit results for
each segment include lower incentive compensation expenses, as we did not fully achieve our 2010
performance goals.
Food Packaging Segment
Sales increased 6% on a constant dollar basis, with 6% higher volumes as all regions grew,
reflecting seasonality in the holiday period and increased demand for our solutions. Volume growth
was primarily driven by a 7% increase in North America and a 9% increase in Europe. Despite the
benefits of price increases and formula contract adjustments in the quarter, price/mix was
negatively affected by the volatility of the foreign currency environment in Venezuela and
selectively lower pricing associated with higher customer volume commitments. Adjusting for the
foreign currency effect, price/mix would have been positive for the quarter. Operating
profit increased 17% to $78 million, or 14.7% of net sales, compared with 13.3% in 2009.
Food Solutions Segment
Sales increased 6% on a constant dollar basis, with 6% higher volumes, which were primarily
driven by an 11% increase in Europe. Price/mix was relatively steady as the mix effect in volume
growth from some lower priced products offset benefits from our prior pricing actions. Operating
profit increased 43% to $28 million, or 11.2% of net sales, compared with 8.2% in 2009. The
increase in operating profit is primarily due to leveraging higher volumes and tight control of
expenses.
Protective Packaging Segment
Sales increased 7% on a constant dollar basis, with 8% higher volumes reflecting improving
industrial production rates in North America and Europe and strength in fulfillment/e-commerce
applications. Price/mix was 1% lower due to selective pricing actions, the introduction of new
thinner profile products and the timing of our December 1st price increase. Operating
profit decreased 9% to $38 million, or 11.0% of net sales, compared with 12.9% in 2009. The
decline in operating profit primarily reflects charges associated with the December announcement of
the closure of a small factory in Europe. Adjusting for the costs of the closure, operating profit
would have been $41 million, or 12.0% of net sales.
Other Category
Sales increased 6% on a constant dollar basis, with 8% higher volumes reflecting growth in
both Specialty Materials and Medical Applications. Price/mix was 2% lower primarily due to volume
rebates in our Medical Applications business. We recognized an operating loss of $2
2
million,
primarily from our new ventures investments. This compares with a 1.7% operating profit margin in
2009.
Fourth Quarter Other Matters
In December, we completed an early redemption of $150 million of the outstanding $300 million
principal amount of our 12% Senior Notes due February 14, 2014. The aggregate redemption price was
approximately $196 million, including approximately $5 million of accrued interest, and was funded
with available cash. As a result, we recorded a charge to net
earnings of approximately $24 million, or $0.14 per common share, in the fourth quarter of
2010, which includes a gain resulting from the termination of a related interest rate swap. The
annual interest expense savings from this redemption are $18 million, or $0.06 per common share,
beginning in December 2010 through February 2014.
In our Global Manufacturing Strategy, or GMS program, we recognized an additional $4 million
of charges in the fourth quarter. This includes $3 million in restructuring resulting from
additional headcount reductions identified during the completion of the program. The additional $1
million of charges in cost of sales relates to our previously announced plan to cease certain
operations at one of our German locations. This compares to $8 million of charges, primarily in
restructuring, in 2009. These charges mark the completion of projects related to GMS. We realized
a $55 million annual benefit run rate from this program in 2010 and expect these benefits to
continue in 2011.
The effective income tax rate in the fourth quarter was 13.3% compared to 25.3% in the prior
year period. On a full year basis, the 2010 effective tax rate was 25.5% compared to 25.9% in
2009. Our most recent 2010 guidance of 28% was noted to be without the benefit of certain U.S. tax
credits, which had previously expired. Those tax credits were retroactively extended in December
and our favorable rates reflect that retroactive extension. Additionally, our rate was further
reduced by a higher mix of foreign earnings due to the net loss associated with the premium we paid
to redeem the 12% Senior Notes discussed above.
2011 Outlook and Earnings Guidance
Commenting on our outlook, Mr. Hickey stated:
Through the strengths of our extensive global footprint, customers solid reception of our
new products and services, a strong new product pipeline that leverages differentiated, patented
technologies, and a leaner cost structure, we are well positioned to capture the many opportunities
ahead of us. As our revenue grows we expect ongoing margin expansion, which will bring us a step
closer to our goal of a 15% operating margin.
In 2011, we are anticipating an ongoing modest rate of economic recovery and an average
constant dollar sales growth rate in the 5% to 7% range. Presently, our full year 2011 guidance
also assumes:
| a low-to-mid single-digit percent average increase in resin costs over the year compared to our 2010 average cost; | ||
| a slightly unfavorable impact on net sales from foreign currency translation; | ||
| depreciation and amortization of property and equipment of $145 million; | ||
| amortization of non-cash, long-term, share-based compensation of $30 million; | ||
| interest expense of $150 million; and | ||
| an effective income tax rate of 27.0%. |
3
As a result, we anticipate full year 2011 EPS to be in the range of $1.75 to $1.90.
In addition, capital expenditures in 2011 are estimated to be $150 to $175 million and free
cash flow is expected to once again exceed $300 million.
Our guidance excludes the payment of the W. R. Grace settlement, as the exact timing of the
settlement is unknown, although it is possible that a confirmation order and final payment could
occur sometime in the first half of 2011. Final payment of the W. R. Grace settlement is
expected to be accretive to EPS by approximately $0.12 to $0.14 annually following the payment
date under the assumption of using a substantial portion of cash on hand for the payment and
ceasing to accrue interest on the settlement amount. Additionally, our guidance excludes any
non-operating gains or losses that may be recognized in 2011 due to currency fluctuations in
Venezuela.
Web Site and Conference Call Information
William V. Hickey, our CEO, and David H. Kelsey, our CFO, will conduct an investor conference
call today at 11:00 a.m. (ET) to discuss our earnings results. The conference call will be webcast
live on our web site at www.sealedair.com in the Investor Information section. The
link to the event can be found on the Investor Information home page as well as under the
Presentations & Events tab. Listeners should go to the web site prior to the call to register and
to download and install any necessary audio software. A replay of the webcast will also be
available on the Companys web site.
Investors who cannot access the webcast may listen to the conference call live via telephone
by dialing (888) 679-8035 (domestic) or (617) 213-4848 (international) and use the participant code
96942854. Telephonic replay will be available beginning today at 2:00 p.m. (ET) and ending on
Monday, February 14, 2011 at 11:59 p.m. (ET). To listen to the replay, please dial (888) 286-8010
(domestic) or (617) 801-6888 (international) and use the confirmation code 53209481.
Business
For over fifty years, Sealed Air has been a leading global innovator and manufacturer of a
wide range of packaging and performance-based materials and equipment systems that now serve an
array of food, industrial, medical, and consumer applications. Operating in 51 countries, Sealed
Airs international reach generated revenue of $4.5 billion in 2010. With widely recognized brands
such as Bubble Wrap® brand cushioning, Jiffy® protective mailers,
Instapak® foam-in-place systems and Cryovac® packaging technology, Sealed Air
continues to identify new trends, foster new markets, and deliver innovative solutions to its
customers. For more information about Sealed Air, please visit the Companys web site at
www.sealedair.com.
Non-U.S. GAAP Information
In this press release, we have included several non-U.S. GAAP financial measures, including
adjusted EPS, net sales on a constant dollar basis, adjusted gross profit, adjusted operating
profit, adjusted net earnings, free cash flow and EBIT, EBITDA and Adjusted EBITDA. We present
results and guidance, adjusted to eliminate the effects of specified items that would otherwise be
included under U.S. GAAP, to aid in comparisons with other periods or prior guidance. We may use
adjusted EPS, net sales on a constant dollar basis, adjusted net earnings, adjusted gross profit,
adjusted operating profit, measures of cash flow, and EBITDA
4
figures to determine performance-based
compensation. Our management uses financial measures excluding the effects of foreign currency
translation in evaluating operating performance. Management believes that this information may be
useful to investors. For important information on our use of non-U.S. GAAP financial measures, see
the attached supplementary information entitled Reconciliation of U.S. GAAP Diluted Net Earnings
per Common Share to Non-U.S. GAAP Adjusted Diluted Net Earnings per Common Share, Reconciliation
of U.S. GAAP Gross Profit and Operating Profit to Non-U.S. GAAP Adjusted Gross Profit and Operating
Profit, Non-U.S. GAAP Free Cash Flow, Reconciliation of Net Earnings Available to Common
Stockholders to Non-U.S. GAAP EBIT, EBITDA and Adjusted EBITDA, Components of Change in Net Sales Business Segments and Other and Percentage Changes in
Net Sales by Geographic Region.
Forward-Looking Statements
Sealed Air has provided certain forward-looking statements in this press release such as those
above in the Fourth Quarter Other Matters section, where we discuss currency fluctuations and
outline the benefits that we expect from GMS, and in the Outlook and Earnings Guidance section,
where we discuss our expectations for 2011, including our expected 2011 EPS performance.
Forward-looking statements can be identified by such words as anticipates, assumes, could,
estimates, expects, will and similar expressions. A variety of factors may cause actual
results to differ materially from these expectations, including general economic conditions
affecting packaging utilization; changes in our raw material and energy costs and our sales terms;
currency translation and devaluation effects; and regulatory and legal matters. For more extensive
information, see Risk Factors and Cautionary Notice Regarding Forward-Looking Statements, which
appear in our most recent Annual Report on Form 10-K, as filed with the Securities and Exchange
Commission, as they may be revised and updated by our Forms 10-K, 10-Q and 8-K.
5
SEALED AIR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In millions, except per common share data)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In millions, except per common share data)
Three Months Ended | Year Ended | |||||||||||||||||||||||
December 31, | % | December 31, | % | |||||||||||||||||||||
2010 | 2009 | Change | 2010 | 2009 | Change | |||||||||||||||||||
Net sales: |
||||||||||||||||||||||||
Food Packaging |
$ | 533.6 | $ | 503.7 | 6 | % | $ | 1,923.6 | $ | 1,839.8 | 5 | % | ||||||||||||
Food Solutions |
247.2 | 236.7 | 4 | 934.9 | 891.7 | 5 | ||||||||||||||||||
Protective Packaging |
345.0 | 324.9 | 6 | 1,299.4 | 1,192.9 | 9 | ||||||||||||||||||
Other |
83.4 | 81.1 | 3 | 332.2 | 318.4 | 4 | ||||||||||||||||||
Total net sales |
1,209.2 | 1,146.4 | 6 | 4,490.1 | 4,242.8 | 6 | ||||||||||||||||||
Cost of sales |
877.4 | 812.8 | 8 | 3,237.3 | 3,024.3 | 7 | ||||||||||||||||||
Gross profit |
331.8 | 333.6 | (1 | ) | 1,252.8 | 1,218.5 | 3 | |||||||||||||||||
As a % of total net sales |
27.4 | % | 29.1 | % | 27.9 | % | 28.7 | % | ||||||||||||||||
Marketing, administrative and
development expenses |
189.8 | 203.7 | (7 | ) | 710.2 | 719.2 | (1 | ) | ||||||||||||||||
As a % of total net sales |
15.7 | % | 17.8 | % | 15.8 | % | 17.0 | % | ||||||||||||||||
Restructuring and other charges |
7.2 | 5.8 | 24 | 7.6 | 7.0 | 9 | ||||||||||||||||||
Operating profit |
134.8 | 124.1 | 9 | 535.0 | 492.3 | 9 | ||||||||||||||||||
As a % of total net sales |
11.1 | % | 10.8 | % | 11.9 | % | 11.6 | % | ||||||||||||||||
Interest expense |
(39.2 | ) | (40.3 | ) | (3 | ) | (161.6 | ) | (154.9 | ) | 4 | |||||||||||||
Gains on sale (other-than-temporary
impairment) of
available-for-sale
securities(1) |
3.5 | (0.8 | ) | # | 5.9 | (4.0 | ) | # | ||||||||||||||||
Foreign currency exchange (losses) gains
related to Venezuelan
subsidiary(2) |
(1.0 | ) | | # | 5.5 | | # | |||||||||||||||||
Loss on debt redemption (3) |
(38.5 | ) | | # | (38.5 | ) | (3.4 | ) | # | |||||||||||||||
Other (expense) income, net |
(0.4 | ) | 4.1 | # | (2.9 | ) | (0.1 | ) | # | |||||||||||||||
Earnings before income tax provision |
59.2 | 87.1 | (32 | ) | 343.4 | 329.9 | 4 | |||||||||||||||||
Income tax provision |
7.9 | 22.0 | (64 | ) | 87.5 | 85.6 | 2 | |||||||||||||||||
Net earnings available to common stockholders |
$ | 51.3 | $ | 65.1 | (21 | )% | $ | 255.9 | $ | 244.3 | 5 | % | ||||||||||||
As a % of total net sales |
4.2 | % | 5.7 | % | 5.7 | % | 5.8 | % | ||||||||||||||||
Net earnings per common share: (4) |
||||||||||||||||||||||||
Basic |
$ | 0.32 | $ | 0.41 | (22 | )% | $ | 1.61 | $ | 1.54 | 4 | % | ||||||||||||
Diluted |
$ | 0.29 | $ | 0.37 | (22 | )% | $ | 1.44 | $ | 1.35 | 7 | % | ||||||||||||
Dividends per common share |
$ | 0.13 | $ | 0.12 | 8 | % | $ | 0.50 | $ | 0.48 | 4 | % | ||||||||||||
Weighted average number of common shares
outstanding: (4) |
||||||||||||||||||||||||
Basic |
158.4 | 157.5 | 158.3 | 157.2 | ||||||||||||||||||||
Diluted |
177.6 | 175.7 | 176.7 | 182.6 | ||||||||||||||||||||
# | Denotes a variance greater than 100%, or not meaningful. | |
(1) | In the three months ended December 31, 2010, we recognized additional pre-tax gains of $3.5 million from the sale of our auction rate security investments, which resulted in total gains of $6.6 million in 2010. We also recorded $0.7 million of pre-tax other-than-temporary impairment due to the decline in estimated fair value on some of our auction rate security investments in the first quarter of 2010. In 2009, we recorded pre-tax other-than-temporary impairment due to the decline in estimated fair value on some of our auction rate security investments. | |
(2) | Effective January 1, 2010, Venezuela was designated as a highly inflationary economy under generally accepted accounting principles in the United States of America, or U.S. GAAP. As a result, the U.S. dollar replaced the Bolivar fuerte as the functional currency. These pre-tax gains and losses were due to both the changes in the exchange rates upon settlement of Bolivar-denominated transactions and upon the remeasurement of our Venezuelan subsidiarys financial statements at December 31, 2010. | |
(3) | In 2010, we recorded a pre-tax loss on the redemption of $150 million of our 12% Senior Notes due 2014. In 2009, we recorded a pre-tax loss on the redemption of all of our $431.3 million 3% Convertible Senior Notes due June 2033. | |
(4) | See Supplementary Information included in this release for the calculation of basic and diluted net earnings per common share. |
SEALED AIR CORPORATION
Supplementary Information
CALCULATION OF NET EARNINGS PER COMMON SHARE
(Unaudited)
(In millions, except per common share data)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Basic Net Earnings Per Common Share: |
||||||||||||||||
Numerator |
||||||||||||||||
Net earnings available to common stockholders |
$ | 51.3 | $ | 65.1 | $ | 255.9 | $ | 244.3 | ||||||||
Distributed and allocated undistributed net earnings to non-vested restricted
stockholders |
(0.3 | ) | (0.5 | ) | (1.6 | ) | (1.9 | ) | ||||||||
Distributed and allocated undistributed net earnings to common stockholders |
51.0 | 64.6 | 254.3 | 242.4 | ||||||||||||
Distributed net earnings dividends paid to common stockholders |
(20.6 | ) | (19.0 | ) | (79.2 | ) | (75.6 | ) | ||||||||
Allocation of undistributed net earnings to common stockholders |
$ | 30.4 | $ | 45.6 | $ | 175.1 | $ | 166.8 | ||||||||
Denominator |
||||||||||||||||
Weighted average number of common shares outstanding basic |
158.4 | 157.5 | 158.3 | 157.2 | ||||||||||||
Basic net earnings per common share: |
||||||||||||||||
Distributed net earnings to common stockholders |
$ | 0.13 | $ | 0.12 | $ | 0.50 | $ | 0.48 | ||||||||
Allocated undistributed net earnings to common stockholders |
0.19 | 0.29 | 1.11 | 1.06 | ||||||||||||
Basic net earnings per common share |
$ | 0.32 | $ | 0.41 | $ | 1.61 | $ | 1.54 | ||||||||
Diluted Net Earnings Per Common Share: |
||||||||||||||||
Numerator |
||||||||||||||||
Distributed and allocated undistributed net earnings to common stockholders |
$ | 51.0 | $ | 64.6 | $ | 254.3 | $ | 242.4 | ||||||||
Add: Allocated undistributed net earnings to non-vested restricted stockholders |
0.2 | 0.3 | 1.1 | 1.3 | ||||||||||||
Interest on 3% Convertible Senior Notes, net of taxes (1) |
| | | 4.4 | ||||||||||||
Less: Undistributed net earnings reallocated to non-vested restricted stockholders |
(0.2 | ) | (0.3 | ) | (1.0 | ) | (1.2 | ) | ||||||||
Net earnings available to common stockholders diluted |
$ | 51.0 | $ | 64.6 | $ | 254.4 | $ | 246.9 | ||||||||
Denominator(2) |
||||||||||||||||
Weighted average number of common shares outstanding basic |
158.4 | 157.5 | 158.3 | 157.2 | ||||||||||||
Effect of assumed issuance of Settlement agreement shares |
18.0 | 18.0 | 18.0 | 18.0 | ||||||||||||
Effect of non-vested restricted stock and restricted stock units |
1.2 | 0.2 | 0.4 | 0.2 | ||||||||||||
Effect of conversion of 3% Convertible Senior Notes (1) |
| | | 7.2 | ||||||||||||
Weighted average number of common shares outstanding diluted |
177.6 | 175.7 | 176.7 | 182.6 | ||||||||||||
Diluted net earnings per common share |
$ | 0.29 | $ | 0.37 | $ | 1.44 | $ | 1.35 | ||||||||
(1) | On July 19, 2009, we redeemed all of our 3% Convertible Senior Notes due June 2033. | |
(2) | Provides for the following items if their inclusion is dilutive: (i) the effect of assumed issuance of 18 million shares of common stock reserved for the Settlement agreement, (ii) the effect of non-vested restricted stock and restricted stock units using the treasury stock method and (iii) the effect of conversion of our then-outstanding 3% Convertible Senior Notes due June 2033 in 2009. |
SEALED AIR CORPORATION
Supplementary Information
RECONCILIATION OF U.S. GAAP DILUTED NET EARNINGS PER COMMON SHARE TO
NON-U.S. GAAP ADJUSTED DILUTED NET EARNINGS PER COMMON SHARE(1)
(Unaudited)
(In millions, except per common share data)
Supplementary Information
RECONCILIATION OF U.S. GAAP DILUTED NET EARNINGS PER COMMON SHARE TO
NON-U.S. GAAP ADJUSTED DILUTED NET EARNINGS PER COMMON SHARE(1)
(Unaudited)
(In millions, except per common share data)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
U.S. GAAP diluted
net earnings per
common share as
reported |
$ | 0.29 | $ | 0.37 | $ | 1.44 | $ | 1.35 | ||||||||
Add: Losses on debt
redemptions of
$24.3, net of taxes
of $14.2 in 2010
and $2.1, net of
taxes of $1.3 in
2009(2) |
0.14 | | 0.14 | 0.01 | ||||||||||||
Add: Global
manufacturing
strategy and
restructuring and
other charges of
$2.5, net of taxes
of $1.2 for the
three months ended
December 31, 2010,
$5.6, net of taxes
of $2.3 for the
three months ended
December 31, 2009,
$5.1, net of taxes
of $2.3 for the
year ended December
31, 2010 and $11.4,
net of taxes of
$5.3 for the year
ended December 31,
2009(3) |
0.01 | 0.03 | 0.03 | 0.07 | ||||||||||||
Add: European
manufacturing
facility closure
restructuring and
other charges of
$4.5, net of taxes
of $2.1 for the
three months ended
December 31, 2010
and $4.8, net of
taxes of $2.1 for
2010(4) |
0.03 | | 0.03 | | ||||||||||||
(Less) / add: (Gains
on sale) other-than
-temporary impairment of
available-for-sale
securities of
$(2.2), net of
taxes of $(1.3) for
the three months
ended December 31,
2010, $(3.7), net
of taxes of $(2.2)
for the year ended
December 31, 2010
and $2.5, net of
taxes of $1.5 for
the year ended
December 31,
2009(5) |
(0.01 | ) | | (0.02 | ) | 0.01 | ||||||||||
(Less): Foreign
currency exchange
(gains) related to
Venezuelan
subsidiary of $3.6,
net of taxes of
$1.9 for 2010
(6) |
| | (0.02 | ) | | |||||||||||
Non-U.S. GAAP
adjusted diluted
net earnings per
common share |
$ | 0.46 | $ | 0.40 | $ | 1.60 | $ | 1.44 | ||||||||
(1) | Non-U.S. GAAP adjusted diluted net earnings per common share is provided as supplemental information to U.S. GAAP diluted net earnings per common share and does not purport to represent diluted net earnings per common share as that term is defined and reported under U.S. GAAP, and should not be considered as an alternative or substitute to such measure or as an indicator of our performance under U.S. GAAP. Also, this non-U.S. GAAP measure may not be comparable to similarly-titled measures used by others. Presenting non-U.S. GAAP adjusted diluted net earnings per common share aids in the comparisons with other periods or prior guidance and is among the various performance indicators used by our management to measure the performance of our operations. Further, the items included in the reconciliation above may also be excluded from the calculations of our performance measures set by the Organization and Compensation Committee of our Board of Directors for purposes of determining incentive compensation. Thus, our management believes that this information may be useful to investors. | |
(2) | See Note 3 of Condensed Consolidated Statements of Operations for further details. | |
(3) | Represents charges associated with our global manufacturing strategy. | |
(4) | Represents charges associated with the closure of a packaging facility in Europe. | |
(5) | See Note 1 of Condensed Consolidated Statements of Operations for further details. | |
(6) | See Note 2 of Condensed Consolidated Statement of Operations for more details. Our non-U.S. GAAP adjusted diluted net earnings per common share calculations for the three months and year ended December 31, 2010 excludes the impact of these foreign currency exchange gains as we believe these gains are attributable to significant foreign exchange fluctuations in Venezuela. We will exclude future foreign currency exchange and other non-operating gains and/or losses from our non-U.S. GAAP adjusted diluted net earnings per common share relating to our Venezuelan subsidiary until such time that we believe the foreign exchange environment in Venezuela stabilizes. |
SEALED AIR CORPORATION
Supplementary Information
RECONCILIATION OF U.S. GAAP GROSS PROFIT AND OPERATING PROFIT TO
NON-U.S. GAAP ADJUSTED GROSS PROFIT AND OPERATING PROFIT(1)
(Unaudited)
(In millions)
Supplementary Information
RECONCILIATION OF U.S. GAAP GROSS PROFIT AND OPERATING PROFIT TO
NON-U.S. GAAP ADJUSTED GROSS PROFIT AND OPERATING PROFIT(1)
(Unaudited)
(In millions)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
U.S. GAAP gross profit as reported |
$ | 331.8 | $ | 333.6 | $ | 1,252.8 | $ | 1,218.5 | ||||||||
As a % of total net sales |
27.4 | % | 29.1 | % | 27.9 | % | 28.7 | % | ||||||||
Add: Global manufacturing strategy charges(2) |
0.6 | 2.2 | 3.8 | 9.8 | ||||||||||||
Add: European manufacturing facility closure non-recurring charges(3) |
2.5 | | 2.9 | | ||||||||||||
Non-U.S. GAAP adjusted gross profit |
$ | 334.9 | $ | 335.8 | $ | 1,259.5 | $ | 1,228.3 | ||||||||
As a % of total net sales |
27.7 | % | 29.3 | % | 28.1 | % | 29.0 | % | ||||||||
U.S. GAAP operating profit as reported |
$ | 134.8 | $ | 124.1 | $ | 535.0 | $ | 492.3 | ||||||||
As a % of total net sales |
11.1 | % | 10.8 | % | 11.9 | % | 11.6 | % | ||||||||
Add: Global manufacturing strategy restructuring and other charges(2) |
3.7 | 7.9 | 7.4 | 16.7 | ||||||||||||
Add: European manufacturing facility closure restructuring and other charges(3) |
6.6 | | 6.9 | | ||||||||||||
Non-U.S. GAAP adjusted operating profit |
$ | 145.1 | $ | 132.0 | $ | 549.3 | $ | 509.0 | ||||||||
As a % of total net sales |
12.0 | % | 11.5 | % | 12.2 | % | 12.0 | % |
(1) | Non-U.S. GAAP adjusted gross profit and operating profit are provided as supplemental information to U.S. GAAP gross profit and operating profit and do not purport to represent either term as defined and reported under U.S. GAAP, and should not be considered as an alternative or substitute to such measures or as an indicator of our performance under U.S. GAAP. Also, these non-U.S. GAAP measures may not be comparable to similarly-titled measures used by others. Presenting non-U.S. GAAP gross profit and operating profit aid in the comparisons with other periods or prior guidance and is among the various performance indicators used by our management to measure the performance of our operations. Further, the items included in the reconciliation above may also be excluded from the calculations of our performance measures set by the Organization and Compensation Committee of our Board of Directors for purposes of determining incentive compensation. Thus, our management believes that this information may be useful to investors. | |
(2) | Represents charges associated with our global manufacturing strategy. | |
(3) | Represents charges associated with the closure of a packaging facility in Europe. |
SEALED AIR CORPORATION
Supplementary Information
BUSINESS SEGMENT INFORMATION AND CAPITAL EXPENDITURES(1)
(Unaudited)
(In millions)
Supplementary Information
BUSINESS SEGMENT INFORMATION AND CAPITAL EXPENDITURES(1)
(Unaudited)
(In millions)
BUSINESS SEGMENT INFORMATION:
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Operating profit: |
||||||||||||||||
Food Packaging |
$ | 78.4 | $ | 67.2 | $ | 262.7 | $ | 251.7 | ||||||||
As a % of Food Packaging net sales |
14.7 | % | 13.3 | % | 13.7 | % | 13.7 | % | ||||||||
Food Solutions |
27.7 | 19.4 | 99.2 | 85.7 | ||||||||||||
As a % of Food Solutions net sales |
11.2 | % | 8.2 | % | 10.6 | % | 9.6 | % | ||||||||
Protective Packaging |
38.0 | 41.9 | 169.5 | 150.0 | ||||||||||||
As a % of Protective Packaging net sales |
11.0 | % | 12.9 | % | 13.0 | % | 12.6 | % | ||||||||
Other |
(2.1 | ) | 1.4 | 11.2 | 11.9 | |||||||||||
As a % of Other net sales |
-2.5 | % | 1.7 | % | 3.4 | % | 3.7 | % | ||||||||
Total segments and other |
142.0 | 129.9 | 542.6 | 499.3 | ||||||||||||
As a % of total net sales |
11.7 | % | 11.3 | % | 12.1 | % | 11.8 | % | ||||||||
Restructuring and other charges(2) |
7.2 | 5.8 | 7.6 | 7.0 | ||||||||||||
Total |
$ | 134.8 | $ | 124.1 | $ | 535.0 | $ | 492.3 | ||||||||
As a % of total net sales |
11.1 | % | 10.8 | % | 11.9 | % | 11.6 | % | ||||||||
Depreciation and amortization: |
||||||||||||||||
Food Packaging |
$ | 17.6 | $ | 17.9 | $ | 70.8 | $ | 69.2 | ||||||||
Food Solutions |
7.3 | 8.6 | 29.9 | 31.4 | ||||||||||||
Protective Packaging |
10.6 | 8.6 | 33.6 | 34.1 | ||||||||||||
Other |
5.2 | 5.6 | 20.4 | 19.8 | ||||||||||||
Total |
$ | 40.7 | $ | 40.7 | $ | 154.7 | $ | 154.5 | ||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
CAPITAL EXPENDITURES(1) |
$ | 26.9 | $ | 20.1 | $ | 87.6 | $ | 80.3 | ||||||||
(1) | The 2010 amounts presented are subject to change prior to the filing of our upcoming Annual Report on Form 10-K. | |
(2) | The restructuring and other charges by business segment and other were as follows: |
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Food Packaging |
$ | 3.0 | $ | 5.0 | $ | 3.7 | $ | 6.0 | ||||||||
Food Solutions |
| 0.7 | | 1.0 | ||||||||||||
Protective Packaging |
4.0 | | 3.8 | (0.1 | ) | |||||||||||
Other |
0.2 | 0.1 | 0.1 | 0.1 | ||||||||||||
Total |
$ | 7.2 | $ | 5.8 | $ | 7.6 | $ | 7.0 | ||||||||
Restructuring and other charges of $4.4 million in 2010 relate to our global manufacturing strategy
in our Food Packaging segment and restructuring charges of $4.1 million in 2010 relate to a
packaging facility closure in Europe, which is included in our Protective Packaging segment. In
2010, we also recorded restructuring credits of $0.9 million, which related to our 2008 cost
reduction and productivity program. Restructuring and other charges in 2009 primarily related to
the relocation of our bag making and printing operations in Germany, as part of our global
manufacturing strategy.
SEALED AIR CORPORATION
Supplementary Information
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)
Supplementary Information
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)
Dec. 31, | Sept. 30, | June 30, | March 31, | Dec. 31, | ||||||||||||||||
2010(1) | 2010 | 2010 | 2010 | 2009 | ||||||||||||||||
Assets |
||||||||||||||||||||
Current assets: |
||||||||||||||||||||
Cash and cash equivalents |
$ | 675.6 | $ | 761.8 | $ | 662.2 | $ | 627.5 | $ | 694.5 | ||||||||||
Receivables, net |
697.1 | 691.9 | 642.8 | 641.5 | 666.7 | |||||||||||||||
Inventories |
495.8 | 539.1 | 512.4 | 502.1 | 469.4 | |||||||||||||||
Other current assets |
169.8 | 226.8 | 239.2 | 264.9 | 242.8 | |||||||||||||||
Total current assets |
2,038.3 | 2,219.6 | 2,056.6 | 2,036.0 | 2,073.4 | |||||||||||||||
Property and equipment, net |
948.3 | 965.3 | 943.3 | 979.7 | 1,010.7 | |||||||||||||||
Goodwill |
1,945.9 | 1,947.8 | 1,938.8 | 1,941.4 | 1,948.7 | |||||||||||||||
Other assets, net |
468.5 | 438.9 | 400.1 | 378.8 | 387.3 | |||||||||||||||
Total assets |
$ | 5,401.0 | $ | 5,571.6 | $ | 5,338.8 | $ | 5,335.9 | $ | 5,420.1 | ||||||||||
Liabilities and stockholders equity |
||||||||||||||||||||
Current liabilities: |
||||||||||||||||||||
Short-term borrowings |
$ | 23.5 | $ | 19.7 | $ | 15.4 | $ | 14.0 | $ | 28.2 | ||||||||||
Current portion of long-term debt |
6.5 | 8.6 | 9.5 | 7.5 | 6.5 | |||||||||||||||
Accounts payable |
232.0 | 238.2 | 239.6 | 223.9 | 214.2 | |||||||||||||||
Settlement agreement and related
accrued interest |
787.9 | 777.6 | 767.3 | 757.0 | 746.8 | |||||||||||||||
Other current liabilities |
398.5 | 401.0 | 369.5 | 384.5 | 438.1 | |||||||||||||||
Total current liabilities |
1,448.4 | 1,445.1 | 1,401.3 | 1,386.9 | 1,433.8 | |||||||||||||||
Long-term debt, less current portion |
1,399.2 | 1,559.6 | 1,559.3 | 1,560.6 | 1,626.3 | |||||||||||||||
Other liabilities |
176.4 | 168.3 | 154.0 | 157.4 | 159.7 | |||||||||||||||
Total liabilities |
3,024.0 | 3,173.0 | 3,114.6 | 3,104.9 | 3,219.8 | |||||||||||||||
Total parent company stockholders equity |
2,379.9 | 2,399.5 | 2,224.6 | 2,230.9 | 2,199.6 | |||||||||||||||
Noncontrolling interests |
(2.9 | ) | (0.9 | ) | (0.4 | ) | 0.1 | 0.7 | ||||||||||||
Total stockholders equity |
2,377.0 | 2,398.6 | 2,224.2 | 2,231.0 | 2,200.3 | |||||||||||||||
Total liabilities and stockholders equity |
$ | 5,401.0 | $ | 5,571.6 | $ | 5,338.8 | $ | 5,335.9 | $ | 5,420.1 | ||||||||||
(1) | The amounts presented are subject to change prior to the filing of our upcoming Annual Report on Form 10-K. |
SEALED AIR CORPORATION
Supplementary Information
NON-U.S. GAAP FREE CASH FLOW(1)
(Unaudited)
(In millions)
Supplementary Information
NON-U.S. GAAP FREE CASH FLOW(1)
(Unaudited)
(In millions)
Year Ended | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
U.S. GAAP net earnings available to common stockholders as reported |
$ | 255.9 | $ | 244.3 | ||||
Net earnings effect resulting from the following: |
||||||||
Add: Global manufacturing strategy and restructuring and other charges, net of taxes of $2.3 in 2010 and $5.3 in 2009 |
5.1 | 11.4 | ||||||
Less: Foreign currency exchange gains related to Venezuelan subsidiary, net of taxes of $1.9 |
(3.6 | ) | | |||||
(Less) / add: (Gains on sale) other-than-temporary impairment of available-for-sale securities, net of taxes of $2.2 in 2010 and $(1.5) in 2009 |
(3.7 | ) | 2.5 | |||||
Add: European manufacturing facility closure restructuring and other charges, net of income taxes of $2.1 |
4.8 | | ||||||
Add: Loss on debt redemption, net of income taxes of $14.2 in 2010 and $1.3 in 2009 |
24.3 | 2.1 | ||||||
Non-U.S. GAAP adjusted net earnings available to common stockholders |
$ | 282.8 | $ | 260.3 | ||||
Add: Depreciation and amortization |
154.7 | 154.5 | ||||||
Add: Share-based compensation expense |
30.6 | 38.8 | ||||||
Less: Capital expenditures |
(87.6 | ) | (80.3 | ) | ||||
Changes in working capital items:(2) |
||||||||
Receivables, net |
(30.4 | ) | 16.1 | |||||
Add: Cash used to repay the accounts receivable securitization program |
| 80.0 | ||||||
Inventories |
(26.4 | ) | 94.9 | |||||
Accounts payable |
17.8 | (63.0 | ) | |||||
Non-U.S. GAAP Free Cash Flow |
$ | 341.5 | $ | 501.3 | ||||
(1) | Non-U.S. GAAP free cash flow is provided as supplemental information and does not purport to represent net earnings or net cash provided by operating activities as those terms are defined under U.S. GAAP and should not be considered as an alternative or substitute to such measurements or as an indicator of our performance under U.S. GAAP. Our calculation of free cash flow may not be comparable with similarly-titled measures used by others. Free cash flow is among the various indicators used by our management to measure the performance of our operations, is one of the performance measures on which we may base compensation decisions, and aids in the comparisons with other periods. Thus our management believes such information may be useful to investors. | |
(2) | Includes the impact of foreign currency translation for receivables, net, inventories and accounts payable. |
SEALED AIR CORPORATION
Supplementary Information
RECONCILIATION OF NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS TO
NON-U.S. GAAP EBIT, EBITDA AND ADJUSTED EBITDA(1)
(Unaudited)
(In millions)
Supplementary Information
RECONCILIATION OF NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS TO
NON-U.S. GAAP EBIT, EBITDA AND ADJUSTED EBITDA(1)
(Unaudited)
(In millions)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
U.S. GAAP net earnings available to common stockholders as reported |
$ | 51.3 | $ | 65.1 | $ | 255.9 | $ | 244.3 | ||||||||
Add: Interest expense |
39.2 | 40.3 | 161.6 | 154.9 | ||||||||||||
Add: Income tax provision |
7.9 | 22.0 | 87.5 | 85.6 | ||||||||||||
Non-U.S. GAAP EBIT |
98.4 | 127.4 | 505.0 | 484.8 | ||||||||||||
Add: Depreciation and amortization |
40.7 | 40.7 | 154.7 | 154.5 | ||||||||||||
Non-U.S. GAAP EBITDA |
139.1 | 168.1 | 659.7 | 639.3 | ||||||||||||
Add: Share-based compensation expense |
8.6 | 17.4 | 30.6 | 38.8 | ||||||||||||
Add: Global manufacturing strategy and restructuring and other charges |
3.7 | 7.9 | 7.4 | 16.7 | ||||||||||||
Add / (less): Foreign currency exchange losses (gains) related to Venezuelan subsidiary |
1.0 | | (5.5 | ) | | |||||||||||
(Less) / add: (Gains on sale) other-than-temporary impairment of available-for-sale securities |
(3.5 | ) | 0.8 | (5.9 | ) | 4.0 | ||||||||||
Add: European manufacturing facility closure restructuring and other charges |
6.6 | | 6.9 | | ||||||||||||
Add: Settlement agreement related costs |
| 0.6 | 0.6 | 1.8 | ||||||||||||
Add: Loss on debt redemption |
38.5 | | 38.5 | 3.4 | ||||||||||||
Non-U.S. GAAP adjusted EBITDA |
$ | 194.0 | $ | 194.8 | $ | 732.3 | $ | 704.0 | ||||||||
Total net sales |
$ | 1,209.2 | $ | 1,146.4 | $ | 4,490.1 | $ | 4,242.8 | ||||||||
Non-U.S. GAAP adjusted EBITDA as a percentage of total net sales |
16.0 | % | 17.0 | % | 16.3 | % | 16.6 | % |
(1) | Non-U.S. GAAP EBIT, EBITDA and Adjusted EBITDA are provided as supplemental information and do not purport to represent net earnings or net cash provided by operating activities, as those terms are defined under U.S. GAAP, and should not be considered as an alternative or substitute to such measurements or as indicators of our performance under U.S. GAAP. Our definitions of EBIT, EBITDA and Adjusted EBITDA may not be comparable with similarly-titled measures used by others. Non-U.S. GAAP EBIT, EBITDA and Adjusted EBITDA are among the various indicators used by our management to measure the performance of our operations and aids in the comparison with other periods. Such measures are also among the criteria upon which incentive compensation may be based. Thus our management believes this information may be useful to investors. |
SEALED AIR CORPORATION
Supplementary Information
COMPONENTS OF CHANGE IN NET SALES BUSINESS SEGMENTS AND OTHER(1)
(Unaudited)
(In millions)
Supplementary Information
COMPONENTS OF CHANGE IN NET SALES BUSINESS SEGMENTS AND OTHER(1)
(Unaudited)
(In millions)
Three Months Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||
Food | Food | Protective | Total | |||||||||||||||||||||||||||||||||||||
Packaging | Solutions | Packaging | Other | Company | ||||||||||||||||||||||||||||||||||||
Volume Units |
$ | 31.7 | 6.3 | % | $ | 13.5 | 5.7 | % | $ | 24.9 | 7.7 | % | $ | 6.5 | 7.9 | % | $ | 76.6 | 6.7 | % | ||||||||||||||||||||
Volume Acquired businesses, net of (dispositions) |
| | | | (0.1 | ) | | | (0.1 | ) | (0.1 | ) | | |||||||||||||||||||||||||||
Product price/mix (2) |
(2.4 | ) | (0.5 | ) | 0.3 | 0.1 | (2.4 | ) | (0.7 | ) | (1.5 | ) | (1.7 | ) | (6.0 | ) | (0.5 | ) | ||||||||||||||||||||||
Foreign currency translation |
0.6 | 0.1 | (3.3 | ) | (1.4 | ) | (2.3 | ) | (0.7 | ) | (2.7 | ) | (3.4 | ) | (7.7 | ) | (0.7 | ) | ||||||||||||||||||||||
Total change (U.S. GAAP) |
$ | 29.9 | 5.9 | % | $ | 10.5 | 4.4 | % | $ | 20.1 | 6.3 | % | $ | 2.3 | 2.7 | % | $ | 62.8 | 5.5 | % | ||||||||||||||||||||
Impact of foreign currency translation |
(0.6 | ) | (0.1 | ) | 3.3 | 1.4 | 2.3 | 0.7 | 2.7 | 3.4 | 7.7 | 0.7 | ||||||||||||||||||||||||||||
Total constant dollar change (Non-U.S. GAAP) |
$ | 29.3 | 5.8 | % | $ | 13.8 | 5.8 | % | $ | 22.4 | 7.0 | % | $ | 5.0 | 6.1 | % | $ | 70.5 | 6.2 | % | ||||||||||||||||||||
Year Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||
Food | Food | Protective | Total | |||||||||||||||||||||||||||||||||||||
Packaging | Solutions | Packaging | Other | Company | ||||||||||||||||||||||||||||||||||||
Volume Units |
$ | 64.1 | 3.5 | % | $ | 25.5 | 2.9 | % | $ | 107.5 | 9.0 | % | $ | 18.6 | 5.8 | % | $ | 215.7 | 5.1 | % | ||||||||||||||||||||
Volume Acquired businesses, net of (dispositions) |
| | | | (1.8 | ) | (0.2 | ) | (1.8 | ) | (0.6 | ) | (3.6 | ) | (0.1 | ) | ||||||||||||||||||||||||
Product price/mix (2) |
(30.2 | ) | (1.6 | ) | 4.9 | 0.6 | (9.9 | ) | (0.8 | ) | 0.5 | 0.2 | (34.7 | ) | (0.8 | ) | ||||||||||||||||||||||||
Foreign currency translation |
49.9 | 2.7 | 12.8 | 1.4 | 10.7 | 0.9 | (3.5 | ) | (1.1 | ) | 69.9 | 1.7 | ||||||||||||||||||||||||||||
Total change (U.S. GAAP) |
$ | 83.8 | 4.6 | % | $ | 43.2 | 4.9 | % | $ | 106.5 | 8.9 | % | $ | 13.8 | 4.3 | % | $ | 247.3 | 5.9 | % | ||||||||||||||||||||
Impact of foreign currency translation |
(49.9 | ) | (2.7 | ) | (12.8 | ) | (1.4 | ) | (10.7 | ) | (0.9 | ) | 3.5 | 1.1 | (69.9 | ) | (1.7 | ) | ||||||||||||||||||||||
Total constant dollar change (Non-U.S. GAAP) |
$ | 33.9 | 1.9 | % | $ | 30.4 | 3.5 | % | $ | 95.8 | 8.0 | % | $ | 17.3 | 5.4 | % | $ | 177.4 | 4.2 | % | ||||||||||||||||||||
(1) | The tables above present the components of change in net sales for the three months and year ended December 31, 2010 compared with the same periods in 2009. We also present the change in net sales excluding the impact of foreign currency translation, a non-U.S. GAAP measure, which we define as constant dollar. As a worldwide business, it is important that we take into account the effects of foreign currency translation when we view our results and plan our strategies. Nonetheless, we cannot directly control changes in foreign currency exchange rates. Consequently, when management looks at our net sales to measure the performance of our business, it typically excludes the impact of foreign currency translation. We believe using constant dollar comparisons aids in the comparability with other periods. We may also exclude the impact of foreign currency translation when making incentive compensation determinations. As a result, management believes this presentation may be useful to investors. | |
(2) | See Note 1 of Components of Change in Net Sales Geographic for further details of product price/mix. |
SEALED AIR CORPORATION
Supplementary Information
COMPONENTS OF CHANGE IN NET SALES GEOGRAPHIC
(Unaudited)
(In millions)
Supplementary Information
COMPONENTS OF CHANGE IN NET SALES GEOGRAPHIC
(Unaudited)
(In millions)
Three Months Ended December 31, 2010 | ||||||||||||||||||||||||
U.S. | International | Total Company | ||||||||||||||||||||||
Volume Units |
$ | 37.2 | 7.4 | % | $ | 39.4 | 6.1 | % | $ | 76.6 | 6.7 | % | ||||||||||||
Volume Acquired businesses, net of (dispositions) |
| | (0.1 | ) | | (0.1 | ) | 0.0 | ||||||||||||||||
Product price/mix (1) |
(0.4 | ) | (0.1 | ) | (5.6 | ) | (0.9 | ) | (6.0 | ) | (0.5 | ) | ||||||||||||
Foreign currency translation |
(0.0 | ) | | (7.7 | ) | (1.2 | ) | (7.7 | ) | (0.7 | ) | |||||||||||||
Total |
$ | 36.8 | 7.3 | % | $ | 26.0 | 4.0 | % | $ | 62.8 | 5.5 | % | ||||||||||||
Year Ended December 31, 2010 | ||||||||||||||||||||||||
U.S. | International | Total Company | ||||||||||||||||||||||
Volume Units |
$ | 116.4 | 5.9 | % | $ | 99.3 | 4.4 | % | $ | 215.7 | 5.1 | % | ||||||||||||
Volume Acquired businesses,
net of (dispositions) |
(1.8 | ) | (0.1 | ) | (1.8 | ) | (0.1 | ) | (3.6 | ) | (0.1 | ) | ||||||||||||
Product price/mix (1) |
(2.0 | ) | (0.1 | ) | (32.7 | ) | (1.4 | ) | (34.7 | ) | (0.8 | ) | ||||||||||||
Foreign currency translation |
| | 69.9 | 3.1 | 69.9 | 1.7 | ||||||||||||||||||
Total |
$ | 112.6 | 5.7 | % | $ | 134.7 | 6.0 | % | $ | 247.3 | 5.9 | % | ||||||||||||
(1) | Our reported product price/mix includes the net impact of our pricing actions as well as the period-to-period change in the mix of products sold. Also included in reported product price/mix is the net effect of some of our customers purchasing our products in other countries at selling prices denominated in U.S. dollars or euros. This primarily arises when we export product from the U.S. and Euro-zone countries. In 2010, this effect was most pronounced in our Food Packaging segment, in particular due to the volatility in the foreign currency environment in Venezuela. After adjusting for the effect of some of our customers purchasing our products in other countries at selling prices denominated in U.S. dollars or euros, the total company product price/mix would have been approximately $1.0 million favorable rather than $(6.0) million unfavorable as reported above for the three months ended December 31, 2010 and approximately $(18.0) unfavorable rather than $(34.7) million unfavorable as reported above for the year ended December 31, 2010. |
SEALED AIR CORPORATION
Supplementary Information
PERCENTAGE CHANGE IN NET SALES BY GEOGRAPHIC REGION
(Unaudited)
Supplementary Information
PERCENTAGE CHANGE IN NET SALES BY GEOGRAPHIC REGION
(Unaudited)
Three Months Ended December 31, 2010 | ||||||||
Including the effect of foreign | Excluding the effect of foreign | |||||||
currency translation | currency translation(1) | |||||||
U.S. |
7.3 | % | 7.3 | % | ||||
Canada |
0.9 | (3.6 | ) | |||||
Europe |
3.4 | 10.5 | ||||||
Latin America |
2.8 | (0.5 | ) | |||||
Asia Pacific |
6.8 | 0.6 | ||||||
Total |
5.5 | % | 6.2 | % | ||||
Year Ended December 31, 2010 | ||||||||
Including the effect of foreign | Excluding the effect of foreign | |||||||
currency translation | currency translation(1) | |||||||
U.S. |
5.7 | % | 5.7 | % | ||||
Canada |
8.9 | (1.1 | ) | |||||
Europe |
1.1 | 4.1 | ||||||
Latin America |
12.4 | 5.0 | ||||||
Asia Pacific |
11.0 | (0.4 | ) | |||||
Total |
5.9 | % | 4.2 | % | ||||
PERCENTAGE OF NET SALES CONTRIBUTION BY GEOGRAPHIC REGION
Three Months Ended | Year Ended | |||||||
December 31, 2010 | December 31, 2010 | |||||||
U.S. |
44.7 | % | 46.4 | % | ||||
Canada |
2.9 | 3.2 | ||||||
Europe |
28.0 | 26.9 | ||||||
Latin America |
9.5 | 9.7 | ||||||
Asia Pacific |
14.9 | 13.8 | ||||||
Total |
100.0 | % | 100.0 | % | ||||
(1) | Non-U.S. GAAP financial measures. See Note 1 of Components of Change in Net Sales Business Segments and Other for further details. |