Sealed Air(SEE) - 2022 Q4 - Annual Report

Acquisition and Expansion - The company acquired LB Holdco, Inc. (Liquibox) for $1.15 billion in cash, enhancing its sustainable packaging solutions[30] - In 2022, the company launched the BUBBLE WRAP brand paper bubble mailer, expanding its sustainable product portfolio[45] - The company operates four Packaging Solutions Development and Innovation Centers globally, focusing on innovation in packaging solutions[39] Research and Development - Research and development expenses were $103 million in 2022, up from $100 million in 2021 and $96 million in 2020, indicating a focus on innovation[37] - The company has approximately 2,630 patents and applications, emphasizing its focus on innovation and intellectual property[38] - The company owns or is the licensee of approximately 2,630 patents and 2,350 trademark registrations, filing an average of 185 patent applications annually[38] Sustainability and Environmental Goals - The company aims for net-zero carbon dioxide emissions within its operations by 2040, reflecting its commitment to sustainability[41] - The company integrates environmental sustainability into its business strategy through its Net Positive Circular Ecosystem approach[39] - The company is developing long-term expenditure forecasts to meet its sustainability goals, with costs not material in 2022 but potentially significant in future years[42] Workforce and Diversity - The company employs approximately 16,300 people, with a significant portion (10,200) in direct manufacturing roles[53] - As of December 31, 2022, 25% of the global employee base are female and 35% of the U.S. workforce belong to racial and ethnic minority groups[69] - The company aims to increase gender diversity across employees globally to more than 30% and the representation of racial and ethnic minorities in the U.S. workforce to above 35% by 2025[68] Financial Performance and Market Dynamics - The company experienced slightly higher net sales in the first half compared to the second half due to supply disruptions and recessionary pressures[87] - Raw materials typically represent approximately one-third of the consolidated cost of sales, with significant supply chain disruptions and sharp price increases experienced throughout 2022[82] - Minimal seasonality is observed in the business, with slightly higher net sales in the second half of the year due to holiday events[86] Supply Chain and Operational Efficiency - The company has a centralized supply chain organization aimed at achieving purchasing efficiencies and reducing total delivered costs across all regions[85] - The company faced supply chain disruptions and sharp raw material price increases in 2022 due to inflation, limited availability, and geopolitical factors[82] - The company is focused on operational excellence and aims to simplify and digitize its organizational structure to adapt to global market changes[34] Customer Base and Sales Distribution - The company’s customer base is diversified, with no single customer representing more than 10% of net sales in the past three years[33] - Approximately 50% of Protective sales were sold through distributors in 2022, with no single customer representing more than 10% of segment revenue[79] - In 2022, no single customer represented more than 10% of segment revenue in the Food segment, indicating a diversified customer base[75] Compliance and Regulations - The company has implemented an environmental management system to comply with various laws and regulations regarding the safe storage and use of raw materials and production chemicals[88] - Compliance with environmental regulations has not materially affected the company's capital expenditures or financial condition[88]