Business Segment Information

3 Months Ended

Jan. 31, 2013

Business Segment Information

NOTE 18 — BUSINESS SEGMENT INFORMATION

The Company has five operating segments, which are aggregated into four reportable business segments: Rigid Industrial Packaging & Services, Flexible Products & Services, Paper Packaging, and Land Management.

Operations in the Rigid Industrial Packaging & Services segment involve the production and sale of rigid industrial packaging products, such as steel, fibre and plastic drums, rigid intermediate bulk containers, closure systems for industrial packaging products, transit protection products, water bottles and reconditioned containers, and services, such as container life cycle services, blending, filling and other packaging services, logistics and warehousing. The Company’s rigid industrial packaging products are sold to customers in industries such as chemicals, paints and pigments, food and beverage, petroleum, industrial coatings, agricultural, pharmaceutical and mineral, among others.

Operations in the Flexible Products & Services segment involve the production and sale of flexible intermediate bulk containers and related services on a global basis and the sale of industrial and consumer shipping sacks and multiwall bag products in North America. The Company’s flexible intermediate bulk containers consist of a polypropylene-based woven fabric that is produced at its fully integrated production sites, as well as sourced from strategic regional suppliers. Flexible products are sold to customers and in market segments similar to those of the Company’s Rigid Industrial Packaging & Services segment. Additionally, the Company’s flexible products significantly expand its presence in the agricultural and food industries, among others. The Company’s industrial and consumer shipping sacks and multiwall bag products are used to ship a wide range of industrial and consumer products, such as seed, fertilizers, chemicals, concrete, flour, sugar, feed, pet foods, popcorn, charcoal and salt, primarily for the agricultural, chemical building products and food industries.

Operations in the Paper Packaging segment involve the production and sale of containerboard, corrugated sheets, corrugated containers and other corrugated products to customers in North America. The Company’s corrugated container products are used to ship such diverse products as home appliances, small machinery, grocery products, automotive components, books and furniture, as well as numerous other applications.

Operations in the Land Management segment involve the management and sale of timber and special use properties from approximately 269,100 acres of timber properties in the southeastern United States, which are actively managed, and 11,860 acres of timber properties in Canada. Land Management’s operations focus on the active harvesting and regeneration of our United States timber properties to achieve sustainable long-term yields. While timber sales are subject to fluctuations, the Company seeks to maintain a consistent cutting schedule, within the limits of market and weather conditions. The Company also sells, from time to time, timberland and special use properties, which consists of surplus properties, HBU properties, and development properties.

The Company’s reportable business segments offer different products and services. The accounting policies of the reportable business segments are substantially the same as those described in the “Basis of Presentation and Summary of Significant Accounting Policies” note in the 2012 Form 10-K.

The following segment information is presented for the periods indicated (Dollars in millions):

	Three months ended
	January 31,
	2013		2012
Net sales
Rigid Industrial Packaging & Services	$	704.4	$	703.4
Flexible Products & Services		111.4		114.8
Paper Packaging		184.2		168.1
Land Management		8.6		6.5
Total net sales	$	1,008.6	$	992.8
Operating profit:
Rigid Industrial Packaging & Services	$	32.1	$	31.0
Flexible Products & Services		0.6		2.3
Paper Packaging		27.7		20.2
Land Management		4.2		3.0
Total operating profit	$	64.6	$	56.5
Depreciation, depletion and amortization expense:
Rigid Industrial Packaging & Services	$	26.9	$	25.9
Flexible Products & Services		3.5		3.9
Paper Packaging		8.0		7.9
Land Management		1.1		1.0
Total depreciation, depletion and amortization expense	$	39.5	$	38.7

The following table presents net sales to external customers by geographic area (Dollars in millions):

	Three months ended January 31,
	2013		2012
Net sales:
North America	$	476.1	$	453.4
Europe, Middle East and Africa		370.6		378.3
Asia Pacific and Latin America		161.9		161.1
Total net sales	$	1,008.6	$	992.8

The following table presents total assets by segment and geographic area (Dollars in millions):

	January 31, 2013		October 31, 2012
Assets:
Rigid Industrial Packaging & Services	$	2,442.8	$	2,484.7
Flexible Products & Services		389.8		363.8
Paper Packaging		409.3		401.7
Land Management		279.6		280.5
Total segments		3,521.5		3,530.7
Corporate and other		421.4		326.2
Total assets	$	3,942.9	$	3,856.9
Assets:
North America	$	1,705.9	$	1,717.2
Europe, Middle East and Africa		1,643.4		1,555.0
Asia Pacific and Latin America		593.6		584.7
Total assets	$	3,942.9	$	3,856.9