Segments of Business

6 Months Ended

Jun. 30, 2012

Segments of Business

Segments of Business

Note 13 — 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.  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:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
Business Segments (in millions)	2012			2011			2012			2011
Net Sales to Unaffiliated Customers:
Flexible Packaging	$	1,171.8		$	1,219.5		$	2,332.2		$	2,399.5
Pressure Sensitive Materials	142.1			151.7			287.7			297.1
Intersegment Sales:
Flexible Packaging	(1.0		)	(0.8		)	(1.9		)	(1.5		)
Pressure Sensitive Materials	(0.2		)	(0.2		)	(0.5		)	(0.5		)
Total net sales	$	1,312.7		$	1,370.2		$	2,617.5		$	2,694.6
Operating Profit and Pretax Profit:
Flexible Packaging operating profit	$	116.0		$	116.3		$	232.1		$	232.6
Flexible Packaging facility consolidation and other costs	(19.7		)	—			(27.9		)	—
Net Flexible Packaging operating profit	96.3			116.3			204.2			232.6
Pressure Sensitive Materials operating profit	10.9			11.8			20.6			21.7
General corporate expenses	(24.4		)	(22.8		)	(53.5		)	(45.8		)
Operating income	82.8			105.3			171.3			208.5
Interest expense	17.3			18.1			37.8			36.4
Other non-operating (income) expense, net	(1.0		)	(0.4		)	(0.9		)	1.4
Income before income taxes	$	66.5		$	87.6		$	134.4		$	170.7

	June 30,		December 31,
Business Segments (in millions)	2012		2011
Total Assets:
Flexible Packaging	$	3,650.0	$	3,687.6
Pressure Sensitive Materials	316.6		302.1
Total identifiable assets (1)	3,966.6		3,989.7
Corporate assets (2)	328.7		330.7
Total	$	4,295.3	$	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.