Segment Information

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment Information

 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. Delivery Systems consists of only one operating segment.

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, which include executive and director compensation, stock-based compensation, adjustments to annual incentive plan expense for over- or under-attainment of targets, 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 as restructuring and related charges, certain asset impairments and other specifically-identified income or expense items. 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)	2012			2011			2010
Packaging Systems	$	915.1		$	857.4		$	785.0
Proprietary products	77.0			67.4			62.2
Contract manufacturing	275.1			269.3			261.9
Delivery Systems	352.1			336.7			324.1
Intersegment sales elimination	(0.8		)	(1.8		)	(4.4		)
Net sales	$	1,266.4		$	1,192.3		$	1,104.7

The intersegment sales elimination, which is required for the presentation of consolidated net sales, represents the elimination of components sold between our segments.

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)	2012		2011		2010		2012		2011		2010
United States	$	592.8	$	543.6	$	528.2	$	322.0	$	272.6	$	232.8
Germany	184.4		184.1		151.5		117.2		118.1		117.8
France	102.6		94.2		89.0		42.1		41.3		42.4
Other European countries	251.4		242.7		225.6		72.3		69.9		77.2
Other	135.2		127.7		110.4		115.4		91.7		84.6
	$	1,266.4	$	1,192.3	$	1,104.7	$	669.0	$	593.6	$	554.8

The following tables provide summarized financial information for our segments:

($ in millions)	Packaging Systems		Delivery Systems		Corporate and Eliminations			Consolidated
2012
Net sales	$	915.1	$	352.1	$	(0.8	)	$	1,266.4
Operating profit	$	187.5	$	18.4	$	(70.8	)	$	135.1
Loss on debt extinguishment	—		—		(11.6		)	(11.6		)
Interest expense, net	—		—		(14.9		)	(14.9		)
Income before income taxes	$	187.5	$	18.4	$	(97.3	)	$	108.6
Segment assets	$	942.7	$	389.3	$	232.0		$	1,564.0
Capital expenditures	74.3		24.5		32.5			131.3
Depreciation and amortization expense	52.7		18.4		5.8			76.9
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

During the second quarter of 2012, in connection with our repurchase of our Convertible Debentures, we recognized a pre-tax loss on debt extinguishment of $11.6 million.  Refer to Note 11, Debt, for additional details.