Segment Information

3 Months Ended

Mar. 31, 2014

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 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 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 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 March 31,
($ in millions)	2014			2013
Net sales:
Packaging Systems	$	252.9		$	251.5
Delivery Systems	94.0			88.2
Intersegment sales	(0.1		)	(0.3		)
Total net sales	$	346.8		$	339.4

Operating profit:
Packaging Systems	$	51.4		$	58.6
Delivery Systems	(0.2		)	1.2
Corporate	(11.9		)	(16.5		)
Total operating profit	$	39.3		$	43.3
Loss on debt extinguishment	—			0.2
Interest expense	4.0			4.6
Interest income	0.4			0.6
Income before income taxes	$	35.7		$	39.1

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 three months ended March 31, 2013, in connection with the repurchase of our convertible debt, we recognized a pre-tax loss on debt extinguishment of $0.2 million.