Segments of Business

3 Months Ended

Mar. 31, 2012

Segments of Business

Segments of Business

Note 15 — Segments of Business

The Company’s business activities are organized around and aggregated into its two principal business segments, Flexible Packaging and Pressure Sensitive Materials, based on their similar economic characteristics, products, production process, types of customers, and distribution methods.  Both internal and external reporting conform 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 on several factors including operating profit, which is defined as profit before general corporate expense, interest expense, other non-operating (income) expense, income taxes, and noncontrolling interests.  While there are similarities in selected technology and manufacturing processes utilized between the Company’s business segments, notable differences exist in products, application and distribution of products, and customer base.

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

	For the Quarter Ended March 31,
Business Segments (in millions)	2012			2011
Net Sales to Unaffiliated Customers:
Flexible Packaging	$	1,160.4		$	1,180.1
Pressure Sensitive Materials	145.6			145.3
Intersegment Sales:
Flexible Packaging	(0.9		)	(0.7		)
Pressure Sensitive Materials	(0.3		)	(0.3		)
Total net sales	$	1,304.8		$	1,324.4

	For the Quarter Ended March 31,
Business Segments (in millions)	2012			2011
Operating Profit and Pretax Profit:
Flexible Packaging operating profit	$	116.2		$	116.3
Flexible Packaging facility consolidation and other costs	(8.3		)	—
Net Flexible Packaging operating profit	$	107.9		$	116.3
Pressure Sensitive Materials operating profit	9.7			9.9
General Corporate expenses	(29.1		)	(23.0		)
Operating income	88.5			103.2
Interest expense	20.5			18.3
Other non-operating (income) expense, net	0.1			1.8
Income before income taxes	$	67.9		$	83.1

	March 31,		December 31,
Business Segments (in millions)	2012		2011
Total Assets:
Flexible Packaging	$	3,754.2	$	3,687.6
Pressure Sensitive Materials	319.4		302.1
Total identifiable assets (1)	4,073.6		3,989.7
Corporate assets (2)	317.5		330.7
Total	$	4,391.1	$	4,320.4

(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.