11. Segment and Geographic Data
The Company’s
operations are organized into two operating and reportable segments: Americas
and Rest of World. The structure is designed to align us with our customers,
provide improved service, drive future growth, and to facilitate synergy
realization. Adjusted EBITDA is the
primary measure of profit (loss) used by the chief operating decision maker
("CODM"), our CEO, to evaluate the performance of and allocate
resources among our reportable segments.
The Company defines Adjusted EBITDA
as operating income adjusted to eliminate the impact of certain items that the
Company does not consider indicative of its ongoing operating performance. The
Company's management, including the CODM, uses Adjusted EBITDA to evaluate
segment performance and allocate resources. The accounting policies of the
reportable segments are the same as those in the consolidated financial
statements. The Company's CODM uses consolidated expense information in the
evaluation of segment performance and to allocate resources and is not regularly
provided disaggregated expense information for each of the reportable segments.
Selected information by reportable segment is presented in the following tables:
| | | | | | | | | | | | |
| | | | 2025 | | | | 2024 | | | | 2023 | |
| Net Sales | | | | | | | | | | | | |
| Americas | | $ | 1,833 | | | $ | 1,493 | | | $ | 1,531 | |
| Rest of World | | | 1,371 | | | | 694 | | | | 744 | |
| Total net sales | | $ | 3,204 | | | $ | 2,187 | | | $ | 2,275 | |
| | | | | | | | | | | | | |
| Segment operating expenses(5) | | | | | | | | | | | | |
| Americas | | $ | 1,592 | | | $ | 1,270 | | | $ | 1,285 | |
| Rest of World | | | 1,258 | | | | 635 | | | | 678 | |
| Total segment operating expenses | | $ | 2,850 | | | $ | 1,905 | | | $ | 1,963 | |
| | | | | | | | | | | | | |
| Adjusted EBITDA | | | | | | | | | | | | |
| Americas | | $ | 241 | | | $ | 223 | | | $ | 246 | |
| Rest of World | | | 113 | | | | 59 | | | | 66 | |
| Total adjusted EBITDA | | $ | 354 | | | $ | 282 | | | $ | 312 | |
| | | | | | | | | | | | | |
| Reconciling items: | | | | | | | | | | | | |
| Depreciation and amortization | | $ | 206 | | | $ | 175 | | | $ | 169 | |
| Restructuring, transaction, business optimization and other activities(1) | | | 94 | | | | 30 | | | | 24 | |
| Argentina hyperinflation(2) | | | 4 | | | | 14 | | | | 10 | |
| Goodwill and other impairment | | | — | | | | 172 | | | | — | |
| Corporate expense allocation(3) | | | 3 | | | | 21 | | | | 26 | |
| Other non-cash charges(4) | | | 42 | | | | 11 | | | | 14 | |
| Operating Income | | | 5 | | | | (141 | ) | | | 69 | |
| Interest expense, net and other expense (income), net | | | 171 | | | | (6 | ) | | | (3 | ) |
| Income (loss) before income taxes | | $ | (166 | ) | | $ | (135 | ) | | $ | 72 | |
(1) Includes $84 million, $30 million, and $24 million of Restructuring and other charges in the fiscal year ended 2025, 2024, and 2023, respectively.
(2) Impact of hyperinflation includes the adverse impact of highly inflationary accounting for subsidiaries in Argentina where the functional currency was the Argentine Peso
(3) Consists of estimated parent-allocated charges for the period prior to merger which is required by GAAP as part of the carve-out financial statement process
(4) Includes stock compensation expense and other non-cash items, including $16 million of inventory step-up charges related to the GLT merger and $5 million of Restructuring and other expenses in the fiscal year ended 2025
(5) Segment operating expenses include primarily cost of goods sold and selling, general and administrative expenses
| | | | | | | | | | | | |
| Depreciation and amortization | | | | | | | | | | | | |
| Americas | | $ | 132 | | | $ | 123 | | | $ | 119 | |
| Rest of World | | | 74 | | | | 52 | | | | 50 | |
| Total depreciation and amortization | | $ | 206 | | | $ | 175 | | | $ | 169 | |
| | | | | | | | | | |
| | | | | | 2025 | | | | 2024 | |
| Long-lived assets | | | | | | | | | | |
| Americas | | | | $ | 1,796 | | | $ | 1,460 | |
| Rest of World | | | | | 770 | | | | 461 | |
| Total long-lived assets | | | | $ | 2,566 | | | $ | 1,921 | |
Total assets and capital
expenditures by segment are not disclosed as the CODM does not utilize these
measures to evaluate segment performance or allocate resources and capital.
Selected information by geographical region is presented in the following tables:
| | | | | | | | | | | | |
| | | | 2025 | | | | 2024 | | | | 2023 | |
| Net sales | | | | | | | | | | | | |
| United States and Canada | | $ | 1,398 | | | $ | 991 | | | $ | 998 | |
| Latin America | | | 435 | | | | 502 | | | | 533 | |
| Rest of World | | | 1,371 | | | | 694 | | | | 744 | |
| Total net sales | | $ | 3,204 | | | $ | 2,187 | | | $ | 2,275 | |
Selected information by product line is presented in the following tables:
| | | | | | | | | | | | |
| (in percentages) | | | | | | | 2025 | | | | 2024 | |
| Net sales | | | | | | | | | | | | |
| Personal Care | | | | | | | 48 % | | | | 49 % | |
| Consumer Solutions | | | | | | | 52 % | | | | 51 % | |
| Total net sales | | | | | | | 100 % | | | | 100 % | |