XML 55 R21.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segments of Business
 9 Months Ended
Sep. 30, 2012
Segment Reporting [Abstract]  
Segments of Business
Segments of Business
 
The Company’s business activities are organized around and aggregated into its two principal business segments, Flexible Packaging and Pressure Sensitive Materials, based on their similar economic characteristics, products, production process, types of customers, and distribution methods.  Both internal and external reporting conform to this organizational structure, with no significant differences in accounting policies applied.  Intersegment sales are generally priced to reflect nominal markups.  The Company evaluates the performance of its segments and allocates resources to them based on several factors including operating profit, which is defined as profit before general corporate expense, interest expense, other non-operating (income) expense, income taxes, and noncontrolling interests.  While there are similarities in selected technology and manufacturing processes utilized between the Company’s business segments, notable differences exist in products, application and distribution of products, and customer base.
 
A summary of the Company’s business activities reported by its two business segments follows:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Business Segments (in millions)
 
2012
 
2011
 
2012
 
2011
Net sales to unaffiliated customers:
 
 

 
 

 
 

 
 

Flexible Packaging
 
$
1,153.2

 
$
1,216.8

 
$
3,485.4

 
$
3,616.4

Pressure Sensitive Materials
 
135.7

 
142.0

 
423.4

 
439.0

 
 
 
 
 
 
 
 
 
Intersegment sales:
 
 

 
 

 
 

 
 

Flexible Packaging
 
(0.8
)
 
(0.7
)
 
(2.7
)
 
(2.2
)
Pressure Sensitive Materials
 
(0.3
)
 
(0.2
)
 
(0.8
)
 
(0.7
)
Total net sales
 
$
1,287.8

 
$
1,357.9

 
$
3,905.3

 
$
4,052.5

 
 
 
 
 
 
 
 
 
Operating profit and pretax profit:
 
 

 
 

 
 

 
 

Flexible Packaging operating profit
 
$
131.7

 
$
117.4

 
$
363.8

 
$
350.0

Flexible Packaging facility consolidation and other costs
 
(21.4
)
 
—

 
(49.3
)
 
—

Net Flexible Packaging operating profit
 
110.3

 
117.4

 
314.5

 
350.0

 
 
 
 
 
 
 
 
 
Pressure Sensitive Materials operating profit
 
7.7

 
8.0

 
28.3

 
29.6

 
 
 
 
 
 
 
 
 
General corporate expenses
 
(28.1
)
 
(21.2
)
 
(81.6
)
 
(66.9
)
 
 
 
 
 
 
 
 
 
Operating income
 
89.9

 
104.2

 
261.2

 
312.7

 
 
 
 
 
 
 
 
 
Interest expense
 
17.0

 
18.4

 
54.8

 
54.8

Other non-operating (income) expense, net
 
(1.3
)
 
(1.4
)
 
(2.2
)
 
—

Income before income taxes
 
$
74.2

 
$
87.2

 
$
208.6

 
$
257.9

 
Business Segments (in millions)
 
September 30, 2012
 
December 31, 2011
Total assets:
 
 

 
 

Flexible Packaging
 
$
3,632.2

 
$
3,687.6

Pressure Sensitive Materials
 
313.8

 
302.1

Total identifiable assets (1)
 
3,946.0

 
3,989.7

Corporate assets (2)
 
330.9

 
330.7

Total
 
$
4,276.9

 
$
4,320.4

(1)    Total assets by business segment include only those assets that are specifically identified with each segment’s operations.
(2)  Corporate assets are principally cash and cash equivalents, prepaid expenses, prepaid income taxes, prepaid pension benefit costs, and corporate tangible and intangible property.