Segment Information

9 Months Ended

Sep. 30, 2020

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 offers proprietary packaging, containment and drug delivery products, along with analytical lab and other services, to biologic, generic and pharmaceutical drug 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.

The Chief Operating Decision Maker (“CODM”) evaluates the performance of our segments based upon, among other things, segment net sales and operating profit. 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 the CODM 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 September 30,				Nine Months Ended September 30,
($ in millions)	2020		2019		2020		2019
Net sales:
Proprietary Products	$	421.5	$	345.2	$	1,194.5	$	1,045.9
Contract-Manufactured Products	126.6		111.1		372.5		323.6
Intersegment sales elimination	(0.1)		(0.2)		(0.3)		(0.2)
Consolidated net sales	$	548.0	$	456.1	$	1,566.7	$	1,369.3
Operating profit (loss):
Proprietary Products	$	107.5	$	72.9	$	312.9	$	238.7
Contract-Manufactured Products	18.8		11.6		52.1		33.5
Corporate	(22.4)		(14.4)		(67.1)		(48.9)
Other unallocated items	(4.7)		(2.8)		(7.1)		(4.8)
Total operating profit	$	99.2	$	67.3	$	290.8	$	218.5
Interest expense	2.1		2.1		6.1		6.4
Interest income	(0.2)		(1.0)		(1.2)		(2.5)
Other nonoperating (income) expense	(0.4)		1.3		(0.3)		0.2
Income before income taxes	$	97.7	$	64.9	$	286.2	$	214.4

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

Other unallocated items during the three months ended September 30, 2020 consisted of $4.5 million in restructuring and related charges and $0.2 million of amortization expense associated with an acquisition of an intangible asset. Other unallocated items during the nine months ended September 30, 2020 consisted of $4.5 million in restructuring and related charges, $2.2 million in severance related costs, and $0.4 million of amortization expense associated with an acquisition of an intangible asset.

Other unallocated items during the three and nine months ended September 30, 2019 consisted of $1.8 million and $3.8 million, respectively, in restructuring and related charges. In addition, during the three and nine months ended September 30, 2019, other unallocated items included a charge of $1.0 million as a result of the continued devaluation of Argentina's currency.

Please refer to Note 15, Other Expense (Income), for further discussion of certain unallocated items referenced above.