BUSINESS SEGMENT INFORMATION

6 Months Ended

Apr. 30, 2014

Segment Reporting [Abstract]

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; Paper Packaging; Flexible Products & Services; 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 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 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 multiwall bag products in North America. The Company’s flexible intermediate bulk containers are constructed from 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 globally and service customers and market segments similar to those in 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 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 Land Management segment involve the management and sale of timber and special use properties from approximately 238,850 acres of timber properties in the southeastern United States, which are actively managed, and 10,300 acres of timber properties in Canada. Land Management’s operations focus on the active harvesting and regeneration of the Company’s 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.

In order to maximize the value of timber property, the Company continues to review its current portfolio and explore the development of certain of these properties in Canada and the United States. This process has led the Company to characterize property as follows:

• Surplus property, meaning land that cannot be efficiently or effectively managed by the Company, whether due to parcel size, lack of productivity, location, access limitations or for other reasons.

• HBU property, meaning land that in its current state has a higher market value for uses other than growing and selling timber.

• Development property, meaning HBU land that, with additional investment, may have a significantly higher market value than its HBU market value.

• Timberland, meaning land that is best suited for growing and selling timber.

The disposal of surplus and HBU property is reported in the consolidated statements of income under “gain on disposals of properties, plants and equipment, net” and the sale of development property is reported under “net sales” and “cost of products sold.” All HBU, development and surplus property is used by the Company to productively grow and sell timber until sold. Therefore, when surplus and HBU property is sold, operating profit could result in an amount higher than net sales.

Whether timberland has a higher value for uses other than growing and selling timber is a determination based upon several variables, such as proximity to population centers, anticipated population growth in the area, the topography of the land, aesthetic considerations, including access to water, the condition of the surrounding land, availability of utilities, markets for timber and economic considerations both nationally and locally. Given these considerations, the characterization of land is not a static process, but requires an ongoing review and re-characterization as circumstances change.

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 2013 Form 10-K.

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

	Three months ended					Six months ended
	April 30,					April 30,
	2014			2013		2014			2013
Net sales
Rigid Industrial Packaging & Services	$	784.3		$	773.4	$	1,496.6		$	1,477.8
Paper Packaging		205.0			194.5		407.7			378.7
Flexible Products & Services		105.3			112.4		218.5			223.8
Land Management		6.1			8.6		12.3			17.2
Total net sales	$	1,100.7		$	1,088.9	$	2,135.1		$	2,097.5
Operating profit (loss):
Rigid Industrial Packaging & Services	$	47.2		$	53.2	$	76.7		$	84.7
Paper Packaging		26.5			25.7		56.5			53.4
Flexible Products & Services		(10.3	)		0.8		(9.5	)		1.4
Land Management		11.2			4.2		22.9			8.4
Total operating profit	$	74.6		$	83.9	$	146.6		$	147.9
Depreciation, depletion and amortization expense:
Rigid Industrial Packaging & Services	$	29.3		$	26.6	$	56.7		$	53.5
Paper Packaging		8.1			7.4		15.3			15.4
Flexible Products & Services		3.7			3.7		7.4			7.2
Land Management		0.8			1.2		1.6			2.3
Total depreciation, depletion and amortization expense	$	41.9		$	38.9	$	81.0		$	78.4

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

	Three months ended April 30,				Six months ended April 30,
	2014		2013		2014		2013
Net sales:
North America	$	534.6	$	513.3	$	1,035.0	$	989.4
Europe, Middle East and Africa		415.7		413.5		790.7		784.1
Asia Pacific and Latin America		150.4		162.1		309.4		324.0
Total net sales	$	1,100.7	$	1,088.9	$	2,135.1	$	2,097.5

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

	April 30, 2014		October 31, 2013
Assets:
Rigid Industrial Packaging & Services	$	2,491.5	$	2,441.6
Paper Packaging		419.6		413.3
Flexible Products & Services		366.1		367.3
Land Management		297.3		280.7
Total segments		3,574.5		3,502.9
Corporate and other		422.1		379.3
Total assets	$	3,996.6	$	3,882.2
Assets:
North America	$	1,903.4	$	1,818.2
Europe, Middle East and Africa		1,549.5		1,517.4
Asia Pacific and Latin America		543.7		546.6
Total assets	$	3,996.6	$	3,882.2