Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

 Segment Information

Our business operations are organized into two reportable segments, Packaging Systems and Delivery Systems. Packaging Systems develops, manufactures and sells primary packaging components and systems for injectable drug delivery, including stoppers and seals for vials, closures and other components used in syringe, intravenous and blood collection systems, and prefillable syringe components. Delivery Systems develops, manufactures and sells safety and administration systems, multi-component systems for drug administration, and a variety of custom contract-manufacturing solutions targeted to the healthcare and consumer-products industries. In addition, Delivery Systems is responsible for the continued development and commercialization of our line of proprietary, multi-component systems for injectable drug administration and other healthcare applications.

Packaging Systems has three operating segments: the Americas, Europe and Asia Pacific. These operating segments are aggregated for reporting purposes as they have common economic characteristics, produce and sell a similar range of products, use a similar distribution process and have a similar customer base. Delivery Systems consists of only one operating segment.

We evaluate the performance of our segments based upon, among other things, segment net sales and operating profit. Segment operating profit excludes general corporate costs, which include executive and director compensation, stock-based compensation, adjustments to annual incentive plan expense for over- or under-attainment of targets, certain pension and other retirement benefit costs, and other corporate facilities and administrative expenses not allocated to the segments. Also excluded are items that management considers not representative of ongoing operations. Such items are referred to as other unallocated items and generally include restructuring and related charges, certain asset impairments and other specifically-identified income or expense items. Corporate assets include pension assets and investments in affiliated companies. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

The following table provides information on sales by significant product group:

($ in millions)	2015			2014			2013
Packaging Systems	$	1,000.7		$	1,019.7		$	996.0
Proprietary products	97.6			106.5			92.7
Contract manufacturing	302.6			296.0			281.4
Delivery Systems	400.2			402.5			374.1
Intersegment sales elimination	(1.1		)	(0.8		)	(1.7		)
Net sales	$	1,399.8		$	1,421.4		$	1,368.4

The intersegment sales elimination, which is required for the presentation of consolidated net sales, represents the elimination of components sold between our segments.

We do not have any customers accounting for greater than 10% of consolidated net sales.

The following table presents sales and net property, plant and equipment, by the country in which the legal subsidiary is domiciled and assets are located:

	Sales						Property, Plant and Equipment, Net
($ in millions)	2015		2014		2013		2015		2014		2013
United States	$	667.4	$	630.7	$	588.7	$	332.3	$	327.5	$	324.7
Germany	194.0		219.4		219.6		102.9		110.9		124.4
France	107.6		118.2		112.6		38.6		40.4		43.4
Other European countries	252.0		285.0		279.3		117.6		91.5		83.2
Other	178.8		168.1		168.2		129.6		135.5		136.0
	$	1,399.8	$	1,421.4	$	1,368.4	$	721.0	$	705.8	$	711.7

The following tables provide summarized financial information for our segments:

($ in millions)	Packaging Systems		Delivery Systems		Corporate and Eliminations			Consolidated
2015
Net sales	$	1,000.7	$	400.2	$	(1.1	)	$	1,399.8
Operating profit	$	235.7	$	12.0	$	(119.1	)	$	128.6
Interest expense, net	—		—		(12.5		)	(12.5		)
Income before income taxes	$	235.7	$	12.0	$	(131.6	)	$	116.1
Segment assets	$	940.8	$	402.1	$	352.2		$	1,695.1
Capital expenditures	100.0		33.5		(1.9		)	131.6
Depreciation and amortization expense	56.6		24.4		8.9			89.9
2014
Net sales	$	1,019.7	$	402.5	$	(0.8	)	$	1,421.4
Operating profit	$	223.0	$	13.5	$	(54.5	)	$	182.0
Interest expense, net	—		—		(13.0		)	(13.0		)
Income before income taxes	$	223.0	$	13.5	$	(67.5	)	$	169.0
Segment assets (1)	$	1,024.3	$	405.1	$	240.3		$	1,669.7
Capital expenditures	76.5		35.8		(0.4		)	111.9
Depreciation and amortization expense	58.3		23.0		8.7			90.0
2013
Net sales	$	996.0	$	374.1	$	(1.7	)	$	1,368.4
Operating profit	$	217.0	$	9.4	$	(64.0	)	$	162.4
Loss on debt extinguishment	—		—		(0.2		)	(0.2		)
Interest expense, net	—		—		(15.1		)	(15.1		)
Income before income taxes	$	217.0	$	9.4	$	(79.3	)	$	147.1
Segment assets (1)	$	1,048.9	$	429.3	$	192.0		$	1,670.2
Capital expenditures	81.3		28.5		42.1			151.9
Depreciation and amortization expense	55.5		20.9		8.8			85.2

⁽¹⁾  Corporate segment asset amounts at December 31, 2014 and 2013 have been adjusted to reflect the reclassification of debt issuance costs of $1.2 million and $1.4 million, respectively, in accordance with new accounting guidance issued in April 2015. Refer to Note 2, New Accounting Standards, for additional details.