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Segment Information
 6 Months Ended
Jun. 30, 2012
Segment Information [Abstract]  
Segment Information
Note 11:  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 the Pharmaceutical Packaging Systems segment ("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.

Segment operating profit excludes general corporate costs, which include executive and director compensation, stock-based compensation, adjustments to annual incentive plan expense for over- or under-attainment, certain pension and other retirement benefit costs, and other corporate facilities and administrative expenses not allocated to the segments. Also excluded are items that management considers not representative of ongoing operations. Such items are referred to as other unallocated items and generally include restructuring and related charges, certain asset impairments and other specifically-identified income or expense items.

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

Three Months Ended
Six Months Ended
June 30,
June 30,
($ in millions)
2012
2011
2012
2011
Net sales:
Packaging Systems
$
235.8
$
222.2
$
471.5
$
438.0
Delivery Systems
89.2
86.4
169.9
166.9
Intersegment sales
(0.2
)
(0.7
)
(0.3
)
(1.6
)
Total net sales
$
324.8
$
307.9
$
641.1
$
603.3

Operating profit:
Packaging Systems
$
50.5
$
38.1
$
104.1
$
80.1
Delivery Systems
5.5
2.4
7.8
4.2
Corporate
(16.5
)
(10.0
)
(30.1
)
(23.2
)
Other unallocated items
(3.9
)
(2.7
)
(4.5
)
(4.6
)
Total operating profit
$
35.6
$
27.8
$
77.3
$
56.5
Loss on debt extinguishment
11.6
-
11.6
-
Interest expense
4.6
4.6
8.8
9.3
Interest income
0.6
0.3
1.0
0.5
Income before income taxes
$
20.0
$
23.5
$
57.9
$
47.7

The intersegment sales elimination, which is required for the presentation of consolidated net sales, represents the elimination of components sold between our segments.
 
During the second quarter of 2012, in connection with our repurchase of approximately 98.06% of our Convertible Debentures, we recognized a pre-tax loss on debt extinguishment of $11.6 million, which consisted of a $6.2 million premium over par value, $4.4 million write-off of unamortized debt issuance costs and $1.0 million in transaction costs.  Refer to Note 7, Debt, for additional details.