Segments of Business

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segments of Business

SEGMENTS OF BUSINESS

In the fourth quarter of 2012, the Company reorganized operating segments as a result of a change in the way the Chief Executive Officer, who serves as Chief Operating Decision Maker (“CODM”), manages and evaluates the business. As a result, the Company made certain changes to its reportable business segments in 2012. Previously the Company had two reportable business segments: Flexible Packaging and Pressure Sensitive Materials. Effective October 1, 2012, the Company expanded the number of reportable business segments to three as it separated the Flexible Packaging segment into two reportable segments; U.S. Packaging and Global Packaging. The Pressure Sensitive Materials reportable segment remains unchanged. Prior year comparatives have been revised to conform to the current reportable segment presentation.

Historically, the Company has supported the aggregation of all Flexible Packaging operating segments (U.S. Packaging, Latin America Packaging and Europe/Asia Pacific Packaging) into one reportable segment. Due to operational re-alignment and recent restructuring efforts in the U.S., the U.S. Packaging segment no longer meets the criteria for aggregation with Global Packaging. The Global Packaging segment includes all packaging-related manufacturing operations located outside of the United States as well as global medical device and pharmaceutical packaging manufacturing operations. This re-alignment helps to ensure consistency in product offerings and quality to global customers. The Pressure Sensitive Materials reportable segment is unchanged and now represents one operating segment.

The Company's business activities are now organized around and aggregated into three principal business segments based on their similar economic characteristics, products, production process, types of customers, and distribution methods. Both internal and external reporting conforms to this organizational structure, with no significant differences in accounting policies applied. Minor intersegment sales are generally priced to reflect nominal markups. The Company evaluates the performance of its segments and allocates resources to them based primarily on operating profit, which is defined as profit

before general corporate expense, interest expense, other non-operating (income) expense, income taxes, and noncontrolling interests.

Products produced within the U.S. and Global Packaging business segments service packaging applications for markets such as food, medical devices, personal care, agribusiness, chemicals, pet food, and consumer products. Products produced within the Pressure Sensitive Materials business segment include film, paper, and metalized plastic film printing stocks used for primary package labeling, promotional decoration, bar code inventory control labels, and laser printing for

administrative office and promotional applications. This segment also includes micro-thin film adhesives used in delicate electronic parts assembly and graphic films for decorative signage.

A summary of the Company’s business activities reported by its three business segments follows:

Business Segments (in millions)	2012			2011			2010
Sales including intersegment sales:
U.S. Packaging	$	3,062.6		$	3,129.2		$	2,835.2
Global Packaging	1,561.3			1,650.1			1,461.6
Pressure Sensitive Materials	556.6			575.8			567.1
Intersegment sales:
U.S. Packaging	(22.5		)	(18.5		)	(13.6		)
Global Packaging	(17.8		)	(12.9		)	(10.8		)
Pressure Sensitive Materials	(1.0		)	(1.0		)	(4.5		)
Total net sales	$	5,139.2		$	5,322.7		$	4,835.0
U.S. Packaging
Operating profit before facility consolidation and other costs (a)	$	408.8		$	341.3		$	346.7
Facility consolidation and other costs	(42.1		)	(26.3		)	—
Operating profit	366.7			315.0			346.7
Global Packaging
Operating profit before facility consolidation and other costs (a)	86.5			121.2			121.8
Facility consolidation and other costs	(26.6		)	(8.6		)	—
Operating profit	59.9			112.6			121.8
Pressure Sensitive Materials
Operating profit before facility consolidation and other costs (a)	37.1			36.1			33.0
Facility consolidation and other costs	—			(2.7		)	—
Operating profit	37.1			33.4			33.0
Corporate
General corporate expenses before facility consolidation and other costs	(118.2		)	(92.8		)	(100.7		)
Facility consolidation and other costs	—			(0.8		)	—
General corporate expenses	(118.2		)	(93.6		)	(100.7		)
Operating income	345.5			367.4			400.8
Interest expense	(70.9		)	(76.8		)	(73.5		)
Other non-operating income (expense)	4.0			1.6			—
Income from continuing operations before income taxes	$	278.6		$	292.2		$	327.3

(a) Fiscal 2012 operating profit before facility consolidation and other costs includes adjustments associated with the alignment of certain accounting practices. The benefit (detriment) for U.S. Packaging, Global Packaging, and Pressure Sensitive Materials for the twelve months ended December 31, 2012 was $13.8 million, $(16.4) million, and $0.5 million, respectively. These adjustments did not have a material impact on the Company's current or previously issued consolidated financial statements.

Business Segments (in millions)	2012		2011		2010
Total assets:
U.S. Packaging	$	2,100.7	$	2,186.6	$	2,261.2
Global Packaging	1,425.4		1,501.0		1,531.3
Pressure Sensitive Materials	325.5		302.1		305.6
Total identifiable assets (1)	3,851.6		3,989.7		4,098.1
Corporate assets (2)	334.1		330.7		187.7
Total	$	4,185.7	$	4,320.4	$	4,285.8
Depreciation and amortization:
U.S. Packaging	$	114.6	$	124.6	$	125.5
Global Packaging	67.3		75.5		66.0
Pressure Sensitive Materials	12.6		13.2		13.2
Corporate	9.8		7.0		5.0
Total	$	204.3	$	220.3	$	209.7
Additions to property and equipment:
U.S. Packaging	$	65.1	$	66.7	$	54.9
Global Packaging	47.2		36.2		35.5
Pressure Sensitive Materials	16.7		11.9		7.8
Corporate	7.4		20.4		15.0
Total	$	136.4	$	135.2	$	113.2

Operations by geographic area (in millions)	2012		2011		2010
Net sales: (3)
North America	$	3,534.3	$	3,592.8	$	3,246.3
Latin America	1,002.6		1,080.5		1,006.0
Europe	470.2		548.7		526.4
Asia Pacific	132.1		100.7		56.3
Total	$	5,139.2	$	5,322.7	$	4,835.0
Long-lived assets: (4)
North America	$	943.7	$	1,004.5	$	1,047.5
Latin America	279.5		314.1		386.3
Europe	135.3		129.7		140.0
Asia Pacific	54.1		39.8		15.8
Total	$	1,412.6	$	1,488.1	$	1,589.6

(1) Total assets by business segment include only those assets that are specifically identified with each segment’s operations.

(2) Corporate assets are principally cash and cash equivalents, prepaid expenses, prepaid income taxes, prepaid pension benefit costs, and corporate tangible and intangible property.

(3) Net sales are attributed to geographic areas based on location of the Company’s manufacturing or selling operation.

(4) Long-lived assets include net property and equipment, long-term receivables, and deferred charges.