Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

Our business operations are organized into two reportable segments, Proprietary Products and Contract-Manufactured Products. Our Proprietary Products reportable segment develops commercial, operational, and innovation strategies across our global network, with specific emphasis on product offerings to biotechnology, generics, and pharmaceutical customers. Our Contract-Manufactured Products reportable segment serves as a fully integrated business focused on the design, manufacture, and automated assembly of complex devices, primarily for pharmaceutical, diagnostic, and medical device customers.

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 we consider 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)	2017			2016
Net sales:
Proprietary Products	$	308.8		$	290.8
Contract-Manufactured Products	79.1			71.6
Intersegment sales elimination	(0.2		)	(0.3		)
Consolidated net sales	$	387.7		$	362.1
Operating profit (loss):
Proprietary Products	$	64.9		$	61.9
Contract-Manufactured Products	8.8			7.0
Corporate	(12.4		)	(13.3		)
Other unallocated items	—			(25.6		)
Total operating profit	$	61.3		$	30.0
Interest expense	2.1			2.5
Interest income	0.3			0.3
Income before income taxes	$	59.5		$	27.8

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, 2016, we recorded $22.9 million in restructuring and related charges, as well as a charge of $2.7 million related to the devaluation of the Venezuelan Bolivar from the previously-prevailing official exchange rate of 6.3 Bolivars to USD to 10.0 Bolivars to USD. Please refer to Note 12, Other Expense, for further discussion of these items.