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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2021
Or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission File Number: 1-12139
SEALED AIR CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware 65-0654331
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification Number)
2415 Cascade Pointe Boulevard 
CharlotteNorth Carolina28208
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (980221-3235 
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, par value $0.10 per shareSEENew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer   Accelerated filer ¨
       
Non-accelerated filer ¨  Smaller reporting company 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  ý
There were 149,892,825 shares of the registrant’s common stock, par value $0.10 per share, issued and outstanding as of July 31, 2021.



 Page
PART I. FINANCIAL INFORMATION 
PART II.  OTHER INFORMATION 





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Cautionary Notice Regarding Forward-Looking Statements
This report contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 concerning our business, consolidated financial condition, results of operations or cash flows. The Securities and Exchange Commission (“SEC”) encourages companies to disclose forward-looking statements so that investors can better understand a company’s future prospects and make informed investment decisions. Forward-looking statements are subject to risks and uncertainties, many of which are outside our control, which could cause actual results to differ materially from these statements. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements can be identified by such words as “anticipate,” “believe,” “plan,” “assume,” “could,” “should,” “estimate,” “expect,” “intend,” “potential,” “seek,” “predict,” “may,” “will” and similar references to future periods. All statements other than statements of historical facts included in this report regarding our strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding expected future operating results, expectations regarding the results of restructuring and other programs, anticipated levels of capital expenditures and expectations of the effect on our financial condition of claims, litigation, environmental costs, contingent liabilities and governmental and regulatory investigations and proceedings.
The following are important factors that we believe could cause actual results to differ materially from those in our forward-looking statements: global economic and political conditions, currency translation and devaluation effects, changes in raw material pricing and availability, competitive conditions, the success of new product offerings, consumer preferences, the effects of animal and food-related health issues, the effects of epidemics or pandemics, including the Coronavirus Disease 2019 (COVID-19), changes in energy costs, environmental matters, the success of our restructuring activities, the success of our merger, acquisition and equity investment strategies, the success of our financial growth, profitability, cash generation and manufacturing strategies and our cost reduction and productivity efforts, changes in our credit ratings, the tax benefit associated with the Settlement agreement (as defined in Note 17 to our Condensed Consolidated Financial Statements included in Part I, Item 1 of this report), regulatory actions and legal matters, and the other information referenced in Part I, Item 1A, "Risk Factors", of our Annual Report on Form 10-K for the year ended December 31, 2020 as filed with the SEC, and in any of our subsequent SEC filings. Any forward-looking statement made by us in this report is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
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SEALED AIR CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets 
(Unaudited)
(In USD millions, except share and per share data)June 30, 2021December 31, 2020
Assets  
Current assets:  
Cash and cash equivalents$273.1 $548.7 
Trade receivables, net of allowance for credit losses of $11.3 in 2021 and $11.7 in 2020
627.6 541.0 
Income tax receivables30.6 71.2 
Other receivables86.3 69.5 
Inventories, net of inventory reserves of $26.0 in 2021 and $21.1 in 2020
730.7 596.7 
Current assets held for sale 0.3 
Prepaid expenses and other current assets58.4 54.1 
Total current assets1,806.7 1,881.5 
Property and equipment, net1,202.8 1,189.7 
Goodwill2,220.9 2,222.6 
Identifiable intangible assets, net162.1 171.0 
Deferred taxes179.3 187.1 
Operating lease right-of-use-assets70.7 76.1 
Other non-current assets364.1 355.8 
Total assets$6,006.6 $6,083.8 
Liabilities and Stockholders' Equity  
Current liabilities:  
Short-term borrowings$0.4 $7.2 
Current portion of long-term debt22.9 22.3 
Current portion of operating lease liabilities23.7 24.3 
Accounts payable880.7 754.2 
Accrued restructuring costs7.8 12.2 
Income tax payable23.1 19.9 
Other current liabilities447.3 527.3 
Total current liabilities1,405.9 1,367.4 
Long-term debt, less current portion3,711.8 3,731.4 
Long-term operating lease liabilities, less current portion48.8 53.2 
Deferred taxes38.6 31.0 
Other non-current liabilities707.7 728.3 
Total liabilities5,912.8 5,911.3 
Commitments and contingencies - Note 17
Stockholders’ equity:  
Preferred stock, $0.10 par value per share, 50,000,000 shares authorized; no shares issued in 2021 and 2020
  
Common stock, $0.10 par value per share, 400,000,000 shares authorized; shares issued: 232,455,721 in 2021 and 231,958,083 in 2020; shares outstanding: 149,888,950 in 2021 and 154,889,772 in 2020
23.2 23.2 
Additional paid-in capital2,103.7 2,093.0 
Retained earnings2,562.8 2,400.7 
Common stock in treasury, 82,566,771 shares in 2021 and 77,068,311 shares in 2020
(3,651.1)(3,380.9)
Accumulated other comprehensive loss, net of taxes(944.8)(963.5)
Total stockholders’ equity93.8 172.5 
Total liabilities and stockholders’ equity$6,006.6 $6,083.8 
 
See accompanying Notes to Condensed Consolidated Financial Statements.
 

4


SEALED AIR CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations
(Unaudited)
 
Three Months Ended June 30,Six Months Ended June 30,
(In USD millions, except per share data)2021202020212020
Net sales$1,328.5 $1,151.2 $2,595.6 $2,325.1 
Cost of sales927.8 761.3 1,793.8 1,544.7 
Gross profit400.7 389.9 801.8 780.4 
Selling, general and administrative expenses192.0 184.5 380.9 378.6 
Amortization expense of intangible assets9.7 9.3 19.4 18.3 
Restructuring charges2.1 10.1 2.1 10.7 
Operating profit196.9 186.0 399.4 372.8 
Interest expense, net(42.1)(43.3)(85.2)(87.7)
Other (expense) income, net(0.4)2.2 0.6 7.0 
Earnings before income tax provision154.4 144.9 314.8 292.1 
Income tax provision45.8 44.6 100.4 77.3 
Net earnings from continuing operations108.6 100.3 214.4 214.8 
(Loss) Gain on sale of discontinued operations, net of tax(0.5)(0.2)3.8 11.9 
Net earnings$108.1 $100.1 $218.2 $226.7 
Basic:    
Continuing operations$0.71 $0.64 $1.40 $1.38 
Discontinued operations  0.03 0.08 
Net earnings per common share - basic
$0.71 $0.64 $1.43 $1.46 
Diluted:
Continuing operations$0.71 $0.64 $1.39 $1.38 
Discontinued operations  0.03 0.08 
Net earnings per common share - diluted
$0.71 $0.64 $1.42 $1.46 
Weighted average number of common shares outstanding:
Basic151.4 155.6 152.8 155.1 
    Diluted152.7 155.9 154.0 155.4 
 
See accompanying Notes to Condensed Consolidated Financial Statements.


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SEALED AIR CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
 
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
(In USD millions)GrossTaxesNetGrossTaxesNetGrossTaxesNetGrossTaxesNet
Net earnings$108.1 $100.1 $218.2 $226.7 
Other comprehensive income (loss):    
Recognition of pension items$1.7 $ 1.7 $1.5 $(0.4)1.1 $3.4 $(1.9)1.5 $2.8 $(0.7)2.1 
Unrealized (losses) gains on derivative instruments for net investment hedge(7.2)1.8 (5.4)(7.7)1.9 (5.8)16.1 (4.0)12.1 (1.7)0.4 (1.3)
Unrealized gains (losses) on derivative instruments for cash flow hedge1.7 (0.4)1.3 (3.0)0.8 (2.2)4.3 (1.2)3.1 3.1 (0.8)2.3 
Foreign currency translation adjustments27.2  27.2 29.3 2.9 32.2 2.0  2.0 (84.9)(2.2)(87.1)
Other comprehensive income (loss)$23.4 $1.4 24.8 $20.1 $5.2 25.3 $25.8 $(7.1)18.7 $(80.7)$(3.3)(84.0)
Comprehensive income, net of taxes$132.9 $125.4 $236.9 $142.7 
 
See accompanying Notes to Condensed Consolidated Financial Statements.
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SEALED AIR CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity (Deficit)
(Unaudited)
(In USD millions)Common StockAdditional
Paid-in Capital
Retained EarningsCommon
Stock in
Treasury
Accumulated Other
Comprehensive
Loss, Net of Taxes
Total
Stockholders’
Equity (Deficit)
Balance at March 31, 2021$23.2 $2,090.8 $2,485.6 $(3,528.6)$(969.6)$101.4 
Effect of share-based incentive compensation— 12.9 — — — 12.9 
Repurchases of common stock— — — (122.5)— (122.5)
Recognition of pension items, net of taxes— — — — 1.7 1.7 
Foreign currency translation adjustments— — — — 27.2 27.2 
Unrealized loss on derivative instruments, net of taxes— — — — (4.1)(4.1)
Net earnings— — 108.1 — — 108.1 
Dividends on common stock ($0.20 per share)
— — (30.9)— — (30.9)
Balance at June 30, 2021$23.2 $2,103.7 $2,562.8 $(3,651.1)$(944.8)$93.8 
Balance at December 31, 2020$23.2 $2,093.0 $2,400.7 $(3,380.9)$(963.5)$172.5 
Effect of share-based incentive compensation— 10.5 — — — 10.5 
Stock issued for profit sharing contribution paid in stock— 0.2 — 27.8 — 28.0 
Repurchases of common stock— — — (298.0)— (298.0)
Recognition of pension items, net of taxes— — — — 1.5 1.5 
Foreign currency translation adjustments— — — — 2.0 2.0 
Unrealized gain on derivative instruments, net of taxes— — — — 15.2 15.2 
Net earnings— — 218.2 — — 218.2 
Dividends on common stock ($0.36 per share)
— — (56.1)— — (56.1)
Balance at June 30, 2021$23.2 $2,103.7 $2,562.8 $(3,651.1)$(944.8)$93.8 
Balance at March 31, 2020$23.2 $2,059.6 $2,099.9 $(3,346.3)$(1,018.3)$(181.9)
Effect of share-based incentive compensation— 11.3 — — — 11.3 
Recognition of pension items, net of taxes— — — — 1.1 1.1 
Foreign currency translation adjustments— — — — 32.2 32.2 
Unrealized loss on derivative instruments, net of taxes— — — — (8.0)(8.0)
Net earnings— — 100.1 — — 100.1 
Dividends on common stock ($0.16 per share)
— — (24.9)— — (24.9)
Balance at June 30, 2020$23.2 $2,070.9 $2,175.1 $(3,346.3)$(993.0)$(70.1)
Balance at December 31, 2019$23.2 $2,073.5 $1,998.5 $(3,382.4)$(909.0)$(196.2)
Effect of share-based incentive compensation— 9.1 — — — 9.1 
Stock issued for profit sharing contribution paid in stock— (11.7)— 36.1 — 24.4 
Recognition of pension items, net of taxes— — — — 2.1 2.1 
Foreign currency translation adjustments— — — — (87.1)(87.1)
Unrealized gain on derivative instruments, net of taxes— — — — 1.0 1.0 
Net earnings— — 226.7 — — 226.7 
Dividends on common stock ($0.32 per share)
— — (50.1)— — (50.1)
Balance at June 30, 2020$23.2 $2,070.9 $2,175.1 $(3,346.3)$(993.0)$(70.1)
See accompanying Notes to Condensed Consolidated Financial Statements.
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SEALED AIR CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended June 30,
(In USD millions)20212020
Net earnings$218.2 $226.7 
Adjustments to reconcile net earnings to net cash provided by operating activities  
Depreciation and amortization91.2 85.9 
Share-based incentive compensation23.0 19.2 
Profit sharing expense11.6 14.1 
Provisions for bad debt0.9 2.6 
Provisions for inventory obsolescence6.6 3.2 
Deferred taxes, net4.5 1.8 
Net gain on sale of business(1.7)(12.1)
Other non-cash items3.4 7.8 
Changes in operating assets and liabilities:  
Trade receivables, net(92.9)(26.0)
Inventories, net(144.8)(88.1)
Accounts payable130.5 2.1 
Customer advance payments4.9 12.0 
Income tax receivable/payable44.3 48.7 
Other assets and liabilities(100.2)(84.9)
Net cash provided by operating activities$199.5 $213.0 
Cash flows from investing activities:  
Capital expenditures(97.1)(83.6)
Receipts associated with sale of business and property and equipment1.1 5.2 
Business acquired, net of cash acquired(0.1)4.2 
Payments associated with debt and equity investments(15.0) 
Investment in marketable securities 12.9 
Settlement of foreign currency forward contracts8.0 (5.9)
Proceeds of Corporate Owned Life Insurance7.7  
Net cash used in investing activities$(95.4)$(67.2)
Cash flows from financing activities:  
Net payments of short-term borrowings(6.8)(20.4)
Proceeds from long-term debt1.3  
Payments of long-term debt(5.7) 
Dividends paid on common stock(56.1)(50.7)
Impact of tax withholding on share-based compensation(14.0)(11.2)
Repurchases of common stock(299.5) 
Principal payments related to financing leases(5.1)(5.9)
Net cash used in financing activities$(385.9)$(88.2)
Effect of foreign currency exchange rate changes on cash and cash equivalents$6.2 $(30.3)
Cash Reconciliation:
Cash and cash equivalents548.7 262.4 
Restricted cash and cash equivalents  
Balance, beginning of period$548.7 $262.4 
Net change during the period(275.6)27.3 
Cash and cash equivalents273.1 289.7 
Restricted cash and cash equivalents  
Balance, end of period$273.1 $289.7 
Supplemental Cash Flow Information:  
Interest payments, net of amounts capitalized$89.4 $97.5 
Income tax payments, net of cash refunds$35.3 $31.4 
Restructuring payments including associated costs$10.6 $43.9 
Non-cash items:
Transfers of shares of common stock from treasury for profit-sharing contributions$28.0 $24.4 
See accompanying Notes to Condensed Consolidated Financial Statements.
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SEALED AIR CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (unaudited)

Note 1 Organization and Basis of Presentation
Organization
We are a leading global provider of packaging materials, equipment and systems, and services. Our portfolio of packaging solutions includes CRYOVAC® brand food packaging, SEALED AIR® brand protective packaging, AUTOBAG® brand automated packaging, BUBBLE WRAP® brand packaging and SEETM Automation solutions. Our packaging solutions are sold to an array of end markets including protein, foods, fluids, medical and life sciences, pet care, eCommerce and logistics, and industrials. Sealed Air provides solutions integrating packaging materials, automated equipment and systems, and services, which enable our customers to automate, reduce waste, simplify processes, and remove people from harm's way. We are investing in innovations that bring the industry toward a more sustainable future while providing food safety and security and product protection. We have established leading market positions through our differentiated packaging materials; automated equipment, systems and services; iconic brands; well-established customer relationships and global scale and market access.
We conduct substantially all of our business through two wholly-owned subsidiaries, Cryovac, LLC and Sealed Air Corporation (US). Throughout this report, when we refer to “Sealed Air,” the “Company,” “we,” “our,” or “us,” we are referring to Sealed Air Corporation and all of our subsidiaries, except where the context indicates otherwise.
Basis of Presentation
Our Condensed Consolidated Financial Statements include all of the accounts of the Company and our subsidiaries. We have eliminated all significant intercompany transactions and balances in consolidation. In management’s opinion, all adjustments, consisting only of normal recurring accruals, necessary for a fair statement of our Condensed Consolidated Balance Sheet as of June 30, 2021 and our Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020 have been made. The results set forth in our Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2021 and in our Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year. The Condensed Consolidated Balance Sheet as of December 31, 2020 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. Some prior period amounts, including the geographic regions described below, have been reclassified to conform to the current year presentation. These reclassifications, individually and in the aggregate, did not have a material impact on our condensed consolidated financial condition, results of operations or cash flows. All amounts are in millions, except per share amounts, and approximate due to rounding. All amounts are presented in U.S. dollar, unless otherwise specified.
Our Condensed Consolidated Financial Statements were prepared in accordance with the interim reporting requirements of the SEC. As permitted under those rules, annual footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted. The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ from these estimates.
We are responsible for the unaudited Condensed Consolidated Financial Statements and notes included in this report. As these are condensed financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (“2020 Form 10-K”) and with the information contained in our other publicly-available filings with the SEC.
When we cross reference to a “Note,” we are referring to our “Notes to Condensed Consolidated Financial Statements,” unless the context indicates otherwise.
There were no significant changes to our significant accounting policies disclosed in “Note 2 – Summary of Significant Accounting Policies and Recently Issued Accounting Standards” of our Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the SEC on February 25, 2021.
As of January 1, 2021, we consolidated the reporting of the North America and South America geographic regions, which are now collectively presented as Americas within Note 3, “Revenue Recognition, Contracts with Customers” and Note 5, “Segments.” No changes were made to EMEA or APAC. This change has no impact on our prior period consolidated results
9


and is only the aggregation of the previously bifurcated continents. Where applicable, prior periods have been retrospectively adjusted to reflect the new geographic regions.
Impact of Inflation and Currency Fluctuation
Argentina
Economic and political events in Argentina have continued to expose us to heightened levels of foreign currency exchange risk. As of July 1, 2018, Argentina was designated as a highly inflationary economy under U.S. GAAP, and the U.S. dollar replaced the Argentine peso as the functional currency for our subsidiaries in Argentina. All Argentine peso-denominated monetary assets and liabilities were remeasured into U.S. dollars using the current exchange rate available to us. The impact of any changes in the exchange rate are reflected within Other (expense) income, net on the Condensed Consolidated Statements of Operations. For the three and six months ended June 30, 2021, the Company recorded a $0.5 million and $1.9 million remeasurement loss, respectively, and a $1.2 million and $2.1 million remeasurement loss for the three and six months ended June 30, 2020, respectively.
Note 2 Recently Adopted and Issued Accounting Standards
Recently Adopted Accounting Standards
In January 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”). ASU 2021-01 provides temporary optional expedients and exceptions to certain guidance in U.S. GAAP to ease the financial reporting burdens related to the expected market transition from London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). The guidance is effective upon issuance, on January 7, 2021, and can be applied through December 31, 2022. This update did not have a material impact on the Company's Condensed Consolidated Financial Statements.
In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323) and Derivatives and Hedging (Topic 815) - Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815 (“ASU 2020-01”). ASU 2020-01 makes improvements related to accounting for certain equity securities when the equity method of accounting is applied or discontinued and provides scope considerations related to forward contracts and purchased options on certain securities. The Company adopted ASU 2020-01 on January 1, 2021. The adoption did not have a material impact on the Company's Condensed Consolidated Financial Statements.
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 eliminates certain exceptions to the guidance in Topic 740 related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes, enacted change in tax laws or rates and clarifies the accounting transactions that result in a step-up in the tax basis of goodwill. The Company adopted ASU 2019-12 on January 1, 2021. The adoption did not have a material impact on the Company's Condensed Consolidated Financial Statements.
Note 3 Revenue Recognition, Contracts with Customers
Description of Revenue Generating Activities
We employ sales, marketing and customer service personnel throughout the world who sell and market our systems, products and services to and/or through a large number of distributors, fabricators, converters, eCommerce and mail order fulfillment firms, and contract packaging firms as well as directly to end-users such as food processors, food service businesses, supermarket retailers, pharmaceutical companies, healthcare facilities, medical device manufacturers, and other manufacturers.
As discussed in Note 5, “Segments,” our reporting segments are Food and Protective. Our Food applications are largely sold directly to end customers, while our Protective products are sold through business supply distributors and directly to the end customer.
10


Food:
Food solutions are sold to perishable food processors in fresh red meat, smoked and processed meats, poultry, seafood, plant-based and dairy (solid and liquids) markets worldwide. Food offers integrated packaging materials and automated equipment solutions to increase food safety, extend shelf life, automate processes and optimize total cost. Its materials, automated equipment and service enables customers to reduce costs and enhance their brands in the marketplace.
Food solutions are utilized by food service businesses (such as restaurants and entertainment venues) (“food service”) and food retailers (such as grocery stores and supermarkets) (“food retail”), among others. Solutions serving the food service market include products such as barrier bags and pouches, and are primarily marketed under the CRYOVAC® trademark and other highly recognized trade names including CRYOVAC® brand Barrier Bags, CRYOVAC® brand Form-Fill-Seal Films, and CRYOVAC® brand Auto Pouch System. Solutions serving the food retail market include products such as barrier bags, film, and trays, and are primarily marketed under the CRYOVAC® trademark and other highly recognized trade names including CRYOVAC® brand Grip & TearTM, CRYOVAC® brand Darfresh®, OptiDure™, Simple Steps®, and CRYOVAC® brand Barrier Bags.
Protective:
Protective packaging solutions are utilized across many global markets to protect goods during transit and are especially valuable to eCommerce, consumer goods, pharmaceutical and medical devices and industrial manufacturing. Protective solutions are designed to increase our customers' packaging velocity, minimize packaging waste, reduce labor dependencies and address dimensional weight challenges.
Protective solutions are sold through a strategic network of distributors as well as directly to our customers, including, but not limited to, fabricators, original equipment manufacturers, contract manufacturers, logistics partners and eCommerce/fulfillment operations. Protective solutions are marketed under SEALED AIR® brand, BUBBLE WRAP® brand, AUTOBAG® brand and other highly recognized trade names and product families including BUBBLE WRAP® brand inflatable packaging, SEALED AIR® brand performance shrink films, AUTOBAG® brand bagging systems, Instapak® polyurethane foam packaging solutions and Korrvu® suspension and retention packaging. In addition, we provide temperature assurance packaging solutions under the KevothermalTM and TempGuardTM brands.
Revenue Recognition
Revenue from contracts with customers is recognized upon transfer of control to the customer. Revenue for materials and equipment sales is recognized based on shipping terms, which is the point in time the customer obtains control of the promised goods. Maintenance revenue is recognized straight-line on the basis that the level of effort is consistent over the term of the contract.
The transaction price is allocated to each standalone performance obligation in the contract based on observable selling prices or one of the following three methods: an adjusted market assessment approach, expected cost plus a margin approach, or residual approach. We include in the transaction price some or all of an amount of variable consideration estimated to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.
Charges for rebates and other allowances are recognized as a deduction from revenue on an accrual basis in the period in which the associated revenue is recorded. Revenue recognized for the three and six months ended June 30, 2021 from performance obligations satisfied in previous reporting periods was $1.0 million and $0.8 million, respectively, and $1.2 million and $2.2 million for the three and six months ended June 30, 2020, respectively.
The Company does not adjust consideration in contracts with customers for the effects of a significant financing component if the Company expects that the period between transfer of a good or service and payment for that good or service will be one year or less. This is expected to be the case for the majority of the Company's contracts.

Lease components within contracts with customers are recognized in accordance with ASC 842.
11


Disaggregated Revenue
For the three and six months ended June 30, 2021 and 2020, revenues from contracts with customers summarized by Segment and Geography were as follows:
Three Months Ended June 30, 2021Six Months Ended June 30, 2021
(In millions)FoodProtectiveTotalFoodProtectiveTotal
Americas$458.4 $373.3 $831.7 $893.2 $721.4 $1,614.6 
EMEA168.1 133.5 301.6 320.0 262.0 582.0 
APAC101.5 83.5 185.0 211.4 170.3 381.7 
Topic 606 Segment Revenue728.0 590.3 1,318.3 1,424.6 1,153.7 2,578.3 
Non-Topic 606 Revenue (Leasing: Sales-type and Operating)8.7 1.5 10.2 14.3 3.0 17.3 
Total$736.7 $591.8 $1,328.5 $1,438.9 $1,156.7 $2,595.6 

Three Months Ended June 30, 2020Six Months Ended June 30, 2020
(In millions)FoodProtectiveTotalFoodProtectiveTotal
Americas$424.5 $311.6 $736.1 $875.1 $623.5 $1,498.6 
EMEA150.2 87.9 238.1 291.9 191.4 483.3 
APAC92.3 77.1 169.4 186.2 143.8 330.0 
Topic 606 Segment Revenue667.0 476.6 1,143.6 1,353.2 958.7 2,311.9 
Non-Topic 606 Revenue (Leasing: Sales-type and Operating)6.2 1.4 7.6 10.3