Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment Information

Note 5: Segment Information

Our business operations are organized into two reportable segments, which are aligned with the underlying markets and customers they serve. Our reportable segments are 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.

During the second quarter of 2011, we revised our method of internal financial reporting for the Delivery Systems segment to better align it with how the segment’s performance is assessed by the chief executive officer, who is also the chief operating decision maker. As a result, the former Americas and International operating segments were combined into a total Delivery Systems segment and separate financial information for them is no longer available. This change had no impact on our reportable segments.

Our executive management evaluates the performance of these operating segments based on sales, operating profit and cash flow generation.  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. 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)	2011			2010			2009
Pharmaceutical packaging	$	731.1		$	661.2		$	637.3
Disposable medical components		106.9			100.0			104.6
Laboratory and other services		19.4			23.8			34.1
Packaging Systems		857.4			785.0			776.0
Healthcare devices		177.4			178.8			165.9
Consumer products		69.4			64.7			57.4
Injection and administration systems		59.0			55.3			42.9
Tooling and other services		30.9			25.3			18.8
Delivery Systems		336.7			324.1			285.0
Intersegment sales elimination		(1.8	)		(4.4	)		(5.3	)
Net sales	$	1,192.3		$	1,104.7		$	1,055.7

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)	2011		2010		2009		2011		2010		2009
United States	$	543.6	$	528.2	$	502.8	$	272.6	$	232.8	$	242.5
Germany		184.1		151.5		148.3		118.1		117.8		129.9
France		94.2		89.0		105.3		41.3		42.4		45.9
Other European countries		242.7		225.6		209.3		69.9		77.2		83.2
Other		127.7		110.4		90.0		91.7		84.6		75.6
	$	1,192.3	$	1,104.7	$	1,055.7	$	593.6	$	554.8	$	577.1

The following tables provide summarized financial information for our segments:

($ in millions)	Packaging Systems		Delivery Systems		Corporate and Eliminations			Consolidated
2011
Net sales	$	857.4	$	336.7	$	(1.8	)	$	1,192.3
Operating profit	$	152.6	$	9.8	$	(52.8	)	$	109.6
Interest expense, net		-		-		(16.9	)		(16.9	)
Income before income taxes	$	152.6	$	9.8	$	(69.7	)	$	92.7
Segment assets	$	843.5	$	365.6	$	190.0		$	1,399.1
Capital expenditures		66.2		26.1		3.1			95.4
Depreciation and amortization expense		53.6		18.5		3.6			75.7
2010
Net sales	$	785.0	$	324.1	$	(4.4	)	$	1,104.7
Operating profit	$	139.3	$	9.7	$	(58.3	)	$	90.7
Interest expense, net		-		-		(16.2	)		(16.2	)
Income before income taxes	$	139.3	$	9.7	$	(74.5	)	$	74.5
Segment assets	$	814.4	$	350.6	$	129.3		$	1,294.3
Capital expenditures		48.9		16.3		5.9			71.1
Depreciation and amortization expense		50.7		19.0		3.5			73.2
2009
Net sales	$	776.0	$	285.0	$	(5.3	)	$	1,055.7
Operating profit	$	138.3	$	9.9	$	(50.7	)	$	97.5
Interest expense, net		-		-		(14.4	)		(14.4	)
Income before income taxes	$	138.3	$	9.9	$	(65.1	)	$	83.1
Segment assets	$	824.7	$	335.1	$	111.2		$	1,271.0
Capital expenditures		84.8		18.6		1.5			104.9
Depreciation and amortization expense		46.7		18.5		2.9			68.1