Segments of Business

The Company's business activities are organized around and aggregated into its three principal business segments, U.S. Packaging, Latin America Packaging, and Rest of World 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. Intersegment sales (which are not significant) 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 restructuring and other costs, general corporate expense, interest expense, other non-operating income, and income taxes.

Sales to the Kraft Heinz Company, and its subsidiaries, accounted for approximately 11 and 10 percent of the Company's sales for the nine months ended September 30, 2018 and 2017, respectively. The Company sells to Kraft Heinz primarily through its U.S. Packaging segment.

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



	Three Months Ended September 30,						Nine Months Ended September 30,
Business Segments (in millions)	2018			2017			2018			2017
Sales including intersegment sales:
U.S. Packaging	$	697.8		$	684.5		$	2,068.1		$	2,012.1
Latin America Packaging	149.0			184.7			478.8			535.6
Rest of World Packaging	191.9			182.2			582.1			537.4

Intersegment sales:
U.S. Packaging	(9.4		)	(12.2		)	(30.0		)	(29.4		)
Latin America Packaging	(0.7		)	(0.9		)	(2.6		)	(2.9		)
Rest of World Packaging	(2.2		)	(3.2		)	(9.3		)	(10.2		)
Total net sales	$	1,026.4		$	1,035.1		$	3,087.1		$	3,042.6

Segment operating profit
U.S. Packaging	$	93.4		$	99.6		$	270.5		$	263.2
Latin America Packaging	8.0			7.3			25.0			23.8
Rest of World Packaging	22.2			17.3			57.4			45.7

Restructuring and other costs	16.1			12.9			50.5			41.1
General corporate expenses	14.4			14.3			50.1			50.5

Operating income	93.1			97.0			252.3			241.1

Interest expense	18.9			16.7			56.5			48.7
Other non-operating income	(0.5		)	(1.7		)	(2.1		)	(5.0		)

Income before income taxes	$	74.7		$	82.0		$	197.9		$	197.4

A summary of the Company’s net sales by geographic area reported by its three business segments follows:



	Three Months Ended September 30, 2018
Net sales by geographic area (in millions)	U.S. Packaging		Latin America Packaging		Rest of World Packaging		Total
Net sales (1):
United States	$	688.4	$	—	$	64.7	$	753.1
Brazil	—		99.4		—		99.4
Other Americas	—		48.9		—		48.9
Europe	—		—		75.8		75.8
Asia-Pacific	—		—		49.2		49.2
Total	$	688.4	$	148.3	$	189.7	$	1,026.4



	Nine Months Ended September 30, 2018
Net sales by geographic area (in millions)	U.S. Packaging		Latin America Packaging		Rest of World Packaging		Total
Net sales (1):
United States	$	2,038.1	$	—	$	186.3	$	2,224.4
Brazil	—		315.8		—		315.8
Other Americas	—		160.4		—		160.4
Europe	—		—		242.4		242.4
Asia-Pacific	—		—		144.1		144.1
Total	$	2,038.1	$	476.2	$	572.8	$	3,087.1



	Three Months Ended September 30, 2017
Net sales by geographic area (in millions)	U.S. Packaging		Latin America Packaging		Rest of World Packaging		Total
Net sales (1):
United States	$	672.3	$	—	$	55.5	$	727.8
Brazil	—		126.5		—		126.5
Other Americas	—		57.3		—		57.3
Europe	—		—		72.8		72.8
Asia-Pacific	—		—		50.7		50.7
Total	$	672.3	$	183.8	$	179.0	$	1,035.1



	Nine Months Ended September 30, 2017
Net sales by geographic area (in millions)	U.S. Packaging		Latin America Packaging		Rest of World Packaging		Total
Net sales (1):
United States	$	1,982.7	$	—	$	168.3	$	2,151.0
Brazil	—		362.9		—		362.9
Other Americas	—		169.8		—		169.8
Europe	—		—		214.4		214.4
Asia-Pacific	—		—		144.5		144.5
Total	$	1,982.7	$	532.7	$	527.2	$	3,042.6


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