Business Segments

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

Tredegar’s primary business segments are Film Products and Aluminum Extrusions. Beginning in February 2010, the Company started reporting an additional segment, Other, comprised of the start-up operations of Bright View and Falling Springs. Effective January 1, 2012, the operations and results of Bright View were incorporated into Film Products to leverage research and development efforts and accelerate new product development. As discussed in Note 3, Falling Springs was divested in November 2012. All historical results for this business have been reflected as discontinued operations. With the sale of Falling Springs, there is no longer an Other segment to report.

Information by business segment and geographic area for the last three years is provided below. There were no accounting transactions between segments and no allocations to segments. Net sales (sales less freight) and operating profit from ongoing operations are the measures of sales and operating profit used by the chief operating decision maker for purposes of assessing performance. Film Products’ net sales to The Procter & Gamble Company (“P&G”) totaled $220.8 million in 2014, $261.9 million in 2013 and $264.0 million in 2012. These amounts include plastic film sold to others that convert the film into materials used with products manufactured by P&G.

Net Sales
(In Thousands)	2014		2013		2012
Film Products	$	578,687	$	621,239	$	611,877
Aluminum Extrusions	344,346		309,482		245,465
Total net sales	923,033		930,721		857,342
Add back freight	28,793		28,625		24,846
Sales as shown in consolidated statements of income	$	951,826	$	959,346	$	882,188

Operating Profit
(In Thousands)	2014			2013			2012
Film Products:
Ongoing operations	$	58,054		$	70,966		$	69,950
Plant shutdowns, asset impairments, restructurings and other (a)	(12,827		)	(671		)	(109		)
Aluminum Extrusions:
Ongoing operations	25,664			18,291			9,037
Plant shutdowns, asset impairments, restructurings and other (a)	(976		)	(2,748		)	(5,427		)
Total	69,915			85,838			73,451
Interest income	588			594			418
Interest expense	2,713			2,870			3,590
Gain on investment accounted for under the fair value method (a)	2,000			3,400			16,100
Gain on sale of investment property (a)	1,208			—			—
Unrealized loss on investment property (a)	—			1,018			—
Stock option-based compensation expense	1,272			1,155			1,432
Corporate expenses, net (a)	24,310			31,857			23,443
Income from continuing operations before income taxes	45,416			52,932			61,504
Income taxes (a)	9,387			16,995			18,319
Income from continuing operations	36,029			35,937			43,185
Income (loss) from discontinued operations (a)	850			(13,990		)	(14,934		)
Net income	$	36,879		$	21,947		$	28,251

See footnotes on page 63.

Identifiable Assets
(In Thousands)	2014		2013
Film Products	$	546,210	$	556,873
Aluminum Extrusions	143,328		134,928
Subtotal	689,538		691,801
General corporate (b)	49,032		48,590
Cash and cash equivalents (d)	50,056		52,617
Total	$	788,626	$	793,008

	Depreciation and Amortization						Capital Expenditures
(In Thousands)	2014		2013		2012		2014		2013		2012
Film Products	$	30,730	$	35,332	$	39,202	$	38,806	$	64,867	$	30,484
Aluminum Extrusions	9,974		9,202		9,984		6,092		14,742		2,332
Subtotal	40,704		44,534		49,186		44,898		79,609		32,816
General corporate	114		121		73		—		52		436
Continuing operations	40,818		44,655		49,259		44,898		79,661		33,252
Discontinued operations	—		—		10		—		—		—
Total	$	40,818	$	44,655	$	49,269	$	44,898	$	79,661	$	33,252

Net Sales by Geographic Area (d)
(In Thousands)	2014		2013		2012
United States	$	542,395	$	534,346	$	480,041
Exports from the United States to:
Asia	72,597		82,235		57,639
Canada	47,391		46,481		46,948
Europe	10,874		6,984		5,186
Latin America	3,116		3,505		3,145
Operations outside the United States:
Brazil	97,954		109,415		121,373
The Netherlands	74,329		68,471		67,758
Hungary	39,457		43,482		41,285
China	26,109		28,702		30,636
India	8,811		7,100		3,331
Total (c)	$	923,033	$	930,721	$	857,342

	Identifiable Assets by Geographic Area (d)				Property, Plant & Equipment, Net by Geographic Area (d)
(In Thousands)	2014		2013		2014		2013
United States (b)	$	409,272	$	419,234	$	115,189	$	141,444
Operations outside the United States:
Brazil	212,186		191,415		119,066		99,956
The Netherlands	23,729		32,156		9,117		14,172
China	23,037		25,165		14,141		14,430
Hungary	13,440		17,681		5,829		7,461
India	7,874		6,150		5,575		4,007
General corporate (b)	49,032		48,590		1,040		1,090
Cash and cash equivalents (d)	50,056		52,617		n/a		n/a
Total	$	788,626	$	793,008	$	269,957	$	282,560

See footnotes on page 63 and a reconciliation of net sales to sales as shown in the consolidated statements of income on page 61.

Net Sales by Product Group
(In Thousands)	2014		2013		2012
Film Products:
Personal care materials	$	317,080	$	339,559	$	327,161
Flexible packaging films	114,348		125,712		138,028
Surface protection films	90,129		90,182		69,627
Polyethylene overwrap and polypropylene films	44,263		56,590		63,796
Films for other markets	12,867		9,196		13,265
Subtotal	578,687		621,239		611,877
Aluminum Extrusions:
Nonresidential building & construction	200,707		179,437		165,159
Consumer durables	44,897		39,565		12,259
Machinery & equipment	26,907		21,936		8,773
Automotive	22,272		19,919		11,757
Residential building & construction	21,470		22,055		23,555
Distribution	15,318		13,115		15,227
Electrical	12,775		13,455		8,735
Subtotal	344,346		309,482		245,465
Total	$	923,033	$	930,721	$	857,342

(a) See Notes 1, 3, 4 and 18 for more information on losses associated with plant shutdowns, asset impairments and restructurings, unusual items, gains or losses from sale of assets, gains or losses on an investment accounted for under the fair value method and other items.

(b) The balance sheets include the funded status of each of the Company’s defined benefit pension and other postretirement plans. The funded status of the Company’s defined benefit pension plan was a net liability of $96.4 million and $42.5 million as of December 31, 2014 and 2013, respectively. See Note 14 for more information on the Company’s pension and other postretirement plans.

(c) The difference between total consolidated sales as reported in the consolidated statements of income and segment, geographic and product group net sales reported in this note is freight of $28.8 million in 2014, $28.6 million in 2013 and $24.8 million in 2012.

(d) Information on exports and foreign operations are provided on the previous page. Cash and cash equivalents includes funds held in locations outside the U.S. of $40.5 million and $38.6 million at December 31, 2014 and 2013, respectively. Export sales relate almost entirely to Film Products. Operations outside the U.S. in The Netherlands, Hungary, China, Brazil and India also relate to Film Products. Sales from locations in The Netherlands and Hungary are primarily to customers located in Europe. Sales from locations in China (Guangzhou and Shanghai) are primarily to customers located in China, but also include other customers in Asia.