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, goodwill impairment charges, interest expense, other non-operating income, and income taxes.

Sales to the Kraft Heinz Company, and its subsidiaries, accounted for approximately 11 percent in 2018 and 10 percent in 2017 and 2016. The Company primarily sells to Kraft Heinz Company in the U.S. Packaging segment.

Products produced within the U.S., Latin America and Rest of World Packaging business segments service packaging applications for markets such as food, medical devices, pharma, personal care, agribusiness, chemicals, pet food, and consumer products.

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



Business Segments (in millions)	2018			2017			2016
Sales including intersegment sales:
U.S. Packaging	$	2,739.1		$	2,666.0		$	2,646.8
Latin America Packaging	631.8			715.2			707.0
Rest of World Packaging	773.9			721.4			696.4

Intersegment sales:
U.S. Packaging	(40.6		)	(40.0		)	(25.7		)
Latin America Packaging	(3.2		)	(3.8		)	(3.9		)
Rest of World Packaging	(11.1		)	(12.6		)	(16.2		)
Total net sales	$	4,089.9		$	4,046.2		$	4,004.4

Segment operating profit
U.S. Packaging	$	360.2		$	352.5		$	400.0
Latin America Packaging	48.1			30.0			50.0
Rest of World Packaging	81.2			61.1			64.0

Restructuring and other costs	61.9			60.4			28.6
Goodwill impairment charge	—			196.6			—
General corporate expenses	68.6			64.6			74.1
Operating income	359.0			122.0			411.3

Interest expense	76.1			65.8			60.2
Other non-operating (income) loss	(2.8		)	3.5			0.2

Income before income taxes	$	285.7		$	52.7		$	350.9



Business Segments (in millions)	2018		2017		2016
Total assets (1):
U.S. Packaging	$	2,082.5	$	2,072.0	$	2,007.7
Latin America Packaging	551.9		648.1		779.2
Rest of World Packaging	742.3		784.5		706.1
Corporate assets (2)	194.3		195.3		222.7
Total	$	3,571.0	$	3,699.9	$	3,715.7

Restructuring and other costs (3)(4):
U.S. Packaging	$	11.5	$	13.3	$	—
Latin America Packaging	9.5		28.8		18.9
Rest of World Packaging	1.9		2.7		7.7
Corporate	39.0		15.6		2.0
Total	$	61.9	$	60.4	$	28.6

Depreciation and amortization:
U.S. Packaging	$	96.6	$	97.9	$	93.7
Latin America Packaging	22.6		26.7		26.2
Rest of World Packaging	32.8		30.2		27.9
Corporate	15.6		15.0		14.3
Total	$	167.6	$	169.8	$	162.1

Additions to property and equipment:
U.S. Packaging	$	75.5	$	101.9	$	131.2
Latin America Packaging	32.3		45.2		32.9
Rest of World Packaging	27.2		35.0		36.8
Corporate	8.5		6.4		7.4
Total	$	143.5	$	188.5	$	208.3



Operations by geographic area (in millions)	2018		2017		2016
Long-lived assets (5):
United States	$	917.5	$	957.4	$	949.2
Brazil	191.6		223.6		212.9
Other Americas	48.4		51.9		44.1
Europe	90.7		93.3		75.1
Asia-Pacific	84.6		90.1		81.3
Total	$	1,332.8	$	1,416.3	$	1,362.6


(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. The Company utilizes a global cash pooling arrangement. The Company treats all cash and cash equivalents, including the net cash position in the cash pooling arrangement, as Corporate assets.


(3)	These amounts are excluded from segment operating profit and general corporate expenses.


(4)	Prior year information has been recast to reflect the adoption of pension accounting changes during the first quarter of 2018 and conform to current year presentation.


(5)	Long-lived assets include net property and equipment, long-term receivables, deferred charges, and investment in affiliates.

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



	Twelve Months Ended December 31, 2018
Net sales by geographic area (in millions)	U.S. Packaging		Latin America Packaging		Rest of World Packaging		Total
Net sales (1):
United States	$	2,698.5	$	—	$	249.8	$	2,948.3
Brazil	—		420.7		—		420.7
Other Americas	—		207.9		—		207.9
Europe	—		—		321.5		321.5
Asia-Pacific	—		—		191.5		191.5
Total	$	2,698.5	$	628.6	$	762.8	$	4,089.9



	Twelve Months Ended December 31, 2017
Net sales by geographic area (in millions)	U.S. Packaging		Latin America Packaging		Rest of World Packaging		Total
Net sales (1):
United States	$	2,626.0	$	—	$	221.3	$	2,847.3
Brazil	—		482.1		—		482.1
Other Americas	—		229.3		—		229.3
Europe	—		—		290.0		290.0
Asia-Pacific	—		—		197.5		197.5
Total	$	2,626.0	$	711.4	$	708.8	$	4,046.2



	Twelve Months Ended December 31, 2016
Net sales by geographic area (in millions)	U.S. Packaging		Latin America Packaging		Rest of World Packaging		Total
Net sales (1):
United States	$	2,621.1	$	—	$	224.2	$	2,845.3
Brazil	—		483.5		—		483.5
Other Americas	—		219.6		—		219.6
Europe	—		—		263.5		263.5
Asia-Pacific	—		—		192.5		192.5
Total	$	2,621.1	$	703.1	$	680.2	$	4,004.4


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