BUSINESS SEGMENT INFORMATION

The Company has eight operating segments, which are aggregated into four reportable business segments: Rigid Industrial Packaging & Services; Paper Packaging & Services; Flexible Products & Services; and Land Management. The Rigid Industrial Packaging & Services reportable business segment is the aggregation of five operating segments: Rigid Industrial Packaging & Services – North America; Rigid Industrial Packaging & Services – Latin America; Rigid Industrial Packaging & Services – Europe, Middle East and Africa; Rigid Industrial Packaging & Services – Asia Pacific; and Rigid Industrial Packaging & Services – Tri-Sure.

Operations in the Rigid Industrial Packaging & Services segment involve the production and sale of rigid industrial packaging products, such as steel, fibre and plastic drums, rigid intermediate bulk containers, closure systems for industrial packaging products, transit protection products, water bottles and remanufactured and reconditioned industrial containers, and services, such as container life cycle management, filling, logistics, warehousing and other packaging services. The Company’s rigid industrial packaging products and services are sold to customers in industries such as chemicals, paints and pigments, food and beverage, petroleum, industrial coatings, agricultural, pharmaceutical and mineral products, among others.

Operations in the Paper Packaging & Services segment involve the production and sale of containerboard, corrugated sheets, corrugated containers and other corrugated products to customers in North America in industries such as packaging, automotive, food and building products. The Company’s corrugated container products are used to ship such diverse products as home appliances, small machinery, grocery products, automotive components, books and furniture, as well as numerous other applications.

Operations in the Flexible Products & Services segment involve the production and sale of flexible intermediate bulk containers and related services on a global basis. The Company’s flexible intermediate bulk containers are constructed from a polypropylene-based woven fabric that is produced at its production sites, as well as sourced from strategic regional suppliers. Flexible products are sold to customers and in market segments similar to those of the Company’s Rigid Industrial Packaging & Services segment. Additionally, the Company’s flexible products significantly expand its presence in the agricultural and food industries, among others.

Operations in the Land Management segment involve the management and sale of timber and special use properties from approximately 243,000 acres of timber properties in the southeastern United States. Land Management’s operations focus on the active harvesting and regeneration of its timber properties to achieve sustainable long-term yields. While timber sales are subject to fluctuations, the Company seeks to maintain a consistent cutting schedule, within the limits of market and weather conditions. The Company also sells, from time to time, timberland and special use properties, which consists of surplus properties, HBU properties, and development properties.

In order to maximize the value of timber property, the Company continues to review its current portfolio and explore the development of certain of these properties. This process has led the Company to characterize property as follows:


•	Surplus property, meaning land that cannot be efficiently or effectively managed by the Company, whether due to parcel size, lack of productivity, location, access limitations or for other reasons.


•	HBU property, meaning land that in its current state has a higher market value for uses other than growing and selling timber.


•	Development property, meaning HBU land that, with additional investment, may have a significantly higher market value than its HBU market value.


•	Timberland, meaning land that is best suited for growing and selling timber.

The disposal of surplus and HBU property is reported in the consolidated statements of income under “gain on disposals of properties, plants and equipment, net” and the sale of development property is reported under “net sales” and “cost of products sold.” All HBU, development and surplus property is used by the Company to productively grow and sell timber until sold.

Whether timberland has a higher value for uses other than growing and selling timber is a determination based upon several variables, such as proximity to population centers, anticipated population growth in the area, the topography of the land, aesthetic considerations, including access to water, the condition of the surrounding land, availability of utilities, markets for timber and economic considerations both nationally and locally. Given these considerations, the characterization of land is not a static process, but requires an ongoing review and re-characterization as circumstances change.

The following segment information is presented for each of the three years in the period ended October 31:



(in millions)	2018		2017		2016
Net sales:
Rigid Industrial Packaging & Services	$	2,623.6	$	2,522.7	$	2,324.2
Paper Packaging & Services	898.5		800.9		687.1
Flexible Products & Services	324.2		286.4		288.1
Land Management	27.5		28.2		24.2
Total net sales	$	3,873.8	$	3,638.2	$	3,323.6

Operating profit (loss):
Rigid Industrial Packaging & Services	$	183.2	$	190.1	$	143.9
Paper Packaging & Services	158.3		93.5		89.1
Flexible Products & Services	19.4		5.8		(15.5		)
Land Management	9.6		10.1		8.1
Total operating profit	$	370.5	$	299.5	$	225.6

Depreciation, depletion and amortization expense:
Rigid Industrial Packaging & Services	$	81.2	$	77.0	$	84.6
Paper Packaging & Services	34.2		31.9		31.6
Flexible Products & Services	6.9		7.0		7.7
Land Management	4.6		4.6		3.8
Total depreciation, depletion and amortization expense	$	126.9	$	120.5	$	127.7

Capital expenditures:
Rigid Industrial Packaging & Services	$	76.8	$	57.6	$	53.9
Paper Packaging & Services	39.2		23.2		27.2
Flexible Products & Services	3.7		2.6		3.2
Land Management	0.4		0.5		0.6
Total segment	120.1		83.9		84.9
Corporate and other	19.0		16.2		16.2
Total capital expenditures	$	139.1	$	100.1	$	101.1

Assets:
Rigid Industrial Packaging & Services	$	1,963.0	$	1,976.7	$	1,930.8
Paper Packaging & Services	474.3		459.8		439.8
Flexible Products & Services	153.9		163.2		156.1
Land Management	347.2		345.4		339.9
Total segment	2,938.4		2,945.1		2,866.6
Corporate and other	256.4		287.2		286.4
Total assets	$	3,194.8	$	3,232.3	$	3,153.0

The following geographic information is presented for each of the three years in the period ended October 31:



(in millions)	2018		2017		2016
Net Sales:
United States	$	1,920.5	$	1,779.3	$	1,610.8
Europe, Middle East, and Africa	1,410.9		1,322.4		1,208.4
Asia Pacific and other Americas	542.4		536.5		504.4
Total net sales	$	3,873.8	$	3,638.2	$	3,323.6

The following table presents properties, plants and equipment, net by geographic region:



(in millions)	October 31, 2018		October 31, 2017
Properties, plants and equipment, net:
United States	$	796.3	$	730.1
Europe, Middle East, and Africa	276.9		322.0
Asia Pacific and other Americas	118.7		136.3
Total properties, plants and equipment, net	$	1,191.9	$	1,188.4