SEGMENTS OF BUSINESS

12 Months Ended

Dec. 31, 2011

SEGMENTS OF BUSINESS

SEGMENTS OF BUSINESS

Note 21 — 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.  Minor intersegment sales are generally priced to reflect nominal markups.  The Company evaluates the performance of its segments and allocates resources to them based primarily on 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.

Products produced within the Flexible Packaging business segment service packaging applications for markets such as food, medical devices, personal care, agribusiness, chemicals, pet food, and consumer products.  Products produced within the Pressure Sensitive Materials business segment include film, paper, and metalized plastic film printing stocks used for primary package labeling, promotional decoration, bar code inventory control labels, and laser printing for administrative office and promotional applications.  This segment also includes micro-thin film adhesives used in delicate electronic parts assembly and graphic films for decorative signage.

A summary of the Company’s business activities reported by its two business segments follows:

BUSINESS SEGMENTS (in millions)	2011			2010			2009
Net Sales to Unaffiliated Customers:
Flexible Packaging	$	4,750.6		$	4,273.7		$	2,986.2
Pressure Sensitive Materials	575.8			567.1			537.4
Intersegment Sales:
Flexible Packaging	(2.7		)	(1.3		)	(2.8		)
Pressure Sensitive Materials	(1.0		)	(4.5		)	(6.2		)
Net Sales	$	5,322.7		$	4,835.0		$	3,514.6
Operating Profit and Pretax Profit:
Flexible Packaging operating profit	$	462.5		$	468.5		$	379.2
Flexible Packaging facility consolidation and other costs	(34.9		)	—			—
Net Flexible Packaging operating profit	$	427.6		$	468.5		$	379.2
Pressure Sensitive Materials operating profit	36.1			33.0			13.6
Pressure Sensitive facility consolidation and other costs	(2.7		)	—			—
Net Pressure Sensitive operating profit	33.4			33.0			13.6
General corporate expenses	(92.8		)	(100.7		)	(112.5		)
General Corporate facility consolidation and other costs	(0.8		)	—			—
Net General Corporate operating profit	(93.6		)	(100.7		)	(112.5		)
Operating income	367.4			400.8			280.3
Interest expense	(76.8		)	(73.5		)	(42.1		)
Other non-operating income (expense)	1.6			—			2.1
Income from continuing operations before income taxes	$	292.2		$	327.3		$	240.3
Total Assets:
Flexible Packaging	$	3,687.6		$	3,792.5		$	2,483.3
Pressure Sensitive Materials	302.1			305.6			303.0
Total identifiable assets (1)	3,989.7			4,098.1			2,786.3
Corporate assets (2)	330.7			187.7			1,142.4
Total	$	4,320.4		$	4,285.8		$	3,928.7
Depreciation and Amortization:
Flexible Packaging	$	200.1		$	191.5		$	143.1
Pressure Sensitive Materials	13.2			13.2			13.6
Corporate	7.0			5.0			2.6
Total	$	220.3		$	209.7		$	159.3
Expenditures for Property and Equipment:
Flexible Packaging	$	102.9		$	90.4		$	66.7
Pressure Sensitive Materials	11.9			7.8			7.6
Corporate	20.4			15.0			14.9
Total	$	135.2		$	113.2		$	89.2

OPERATIONS BY GEOGRAPHIC AREA (in millions)	2011		2010		2009
Net Sales to Unaffiliated Customers: (3)
North America	$	3,592.8	$	3,246.3	$	2,281.9
Latin America	1,080.5		1,006.0		655.2
Europe	548.7		526.4		545.9
Asia Pacific	100.7		56.3		31.6
Total	$	5,322.7	$	4,835.0	$	3,514.6
Long-Lived Assets: (4)
North America	$	1,004.5	$	1,047.5	$	734.6
Latin America	314.1		386.3		279.5
Europe	129.7		140.0		156.0
Asia Pacific	39.8		15.8		8.5
Total	$	1,488.1	$	1,589.6	$	1,178.6

(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.
(3)	Net sales are attributed to geographic areas based on location of the Company’s manufacturing or selling operation.
(4)	Long-lived assets include net property and equipment, long-term receivables, and deferred charges.