Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

Note 12:  Segment Information

Our operations are comprised of two reportable segments: Pharmaceutical Packaging Systems (“Packaging Systems”) and Pharmaceutical Delivery Systems (“Delivery Systems”). Packaging Systems consists of our core pharmaceutical packaging products for injectable drug delivery, including stoppers and seals for vials, closures and other components used in syringe, intravenous and blood collection systems, as well as laboratory and other services. 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.

Segment operating profit excludes general corporate costs, including stock-based compensation, adjustments to annual incentive plan expense for over- or under-attainment and certain pension and other retirement benefit costs. Also excluded are items that management considers not representative of ongoing operations, such as restructuring and related charges, certain asset impairments and other specifically identified gains and losses.

The following table presents information about our reportable segments, reconciled to consolidated totals:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
($ in millions)	2011		2010			2011			2010
Net sales:
Packaging Systems	$	209.1	$	191.5		$	647.1		$	591.3
Delivery Systems		84.5		81.0			251.4			239.9
Intersegment sales		-		(1.1	)		(1.6	)		(3.3	)
Total net sales	$	293.6	$	271.4		$	896.9		$	827.9

Operating profit:
Packaging Systems	$	34.8		$	29.4		$	114.9		$	106.8
Delivery Systems		1.7			3.6			5.9			8.5
Corporate		(9.1	)		(9.3	)		(32.2	)		(31.1	)
Other unallocated items		(1.3	)		1.6			(6.0	)		0.6
Total operating profit	$	26.1		$	25.3		$	82.6		$	84.8
Interest expense		4.5			4.2			13.8			12.1
Interest income		(0.4	)		(0.1	)		(0.9	)		(0.3	)
Income before income taxes	$	22.0		$	21.2		$	69.7		$	73.0

During the second quarter of 2011, we incurred $2.1 million in separation costs related to the retirement of our former President and Chief Operating Officer. These costs are included within other unallocated items and consist primarily of stock-based compensation expense. The respective equity compensation arrangements were amended to allow certain of his awards to continue to vest over the original vesting period instead of being forfeited upon separation, resulting in a revaluation of the awards and acceleration of expense.

Also included within other unallocated items are restructuring and related costs, as well as other specifically identified gains and losses, which are discussed further in Note 2, Restructuring and Other Items.