Segments of Business

12 Months Ended

Dec. 31, 2015

Segment Reporting Information [Line Items]

Segments of Business

SEGMENTS OF BUSINESS

The Company's business activities are organized around and aggregated into its two principal business segments, U.S. Packaging and Global Packaging, 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, and income taxes.

Sales to the Kraft Heinz Company, and its subsidiaries, accounted for approximately twelve percent of the Company's sales in 2015. The Company primarily sells to Kraft Heinz in the U.S. Packaging segment.

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.

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

Business Segments (in millions)	2015			2014			2013
Sales including intersegment sales:
U.S. Packaging	$	2,772.8		$	2,889.5		$	3,013.1
Global Packaging	1,345.6			1,507.6			1,518.8
Intersegment sales:
U.S. Packaging	(25.3		)	(28.8		)	(28.5		)
Global Packaging	(21.7		)	(24.8		)	(26.8		)
Total net sales	$	4,071.4		$	4,343.5		$	4,476.6
U.S. Packaging
Operating profit before restructuring and acquisition-related costs	$	391.8		$	375.8		$	382.9
Restructuring and acquisition-related costs	—			—			(45.0		)
Operating profit	391.8			375.8			337.9
Global Packaging
Operating profit before restructuring and acquisition-related costs	116.5			113.3			106.8
Restructuring and acquisition-related costs	(9.4		)	—			(0.4		)
Operating profit	107.1			113.3			106.4
Corporate
General corporate expenses	(89.3		)	(81.4		)	(94.1		)
Operating income	409.6			407.7			350.2
Interest expense	51.7			60.8			68.2
Other non-operating income	(6.0		)	(16.8		)	(7.7		)
Income from continuing operations before income taxes	$	363.9		$	363.7		$	289.7

Business Segments (in millions)	2015		2014		2013
Total assets (1):
U.S. Packaging	$	1,982.5	$	1,977.9	$	2,004.5
Global Packaging	1,291.5		1,345.3		1,413.3
Corporate assets (2)	215.8		287.6		376.2
Discontinued operations	—		—		311.6
Total	$	3,489.8	$	3,610.8	$	4,105.6
Depreciation and amortization:
U.S. Packaging	$	97.8	$	96.3	$	102.4
Global Packaging	47.7		62.1		63.6
Corporate	12.6		11.7		11.5
Total continuing operations	158.1		170.1		177.5
Discontinued operations	—		10.5		12.8
Total	$	158.1	$	180.6	$	190.3
Additions to property and equipment:
U.S. Packaging	$	127.5	$	105.5	$	80.8
Global Packaging	79.4		51.0		42.3
Corporate	12.5		23.8		9.2
Total continuing operations	219.4		180.3		132.3
Discontinued operations	—		4.9		7.5
Total	$	219.4	$	185.2	$	139.8

Operations by geographic area (in millions)	2015		2014		2013
Net sales (3):
United States	$	2,937.8	$	3,040.8	$	3,143.2
Brazil	442.5		581.5		629.6
Other Americas	273.5		273.2		299.8
Europe	233.9		258.8		245.4
Asia-Pacific	183.7		189.2		158.6
Total	$	4,071.4	$	4,343.5	$	4,476.6
Long-lived assets (4):
United States	$	897.4	$	831.8	$	901.5
Brazil	173.1		159.0		179.9
Other Americas	53.1		55.7		64.3
Europe	68.6		68.1		126.4
Asia-Pacific	75.6		72.4		74.3
Total	$	1,267.8	$	1,187.0	$	1,346.4

(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. The Company utilizes a global cash pooling arrangement. Beginning in 2014, the Company treated all cash and cash equivalents, including the net cash position in the cash pooling arrangement, as Corporate assets. Prior periods have been recast on a consistent basis.

(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, deferred charges, and investment in affiliates.