SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2013

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 10 – SEGMENT INFORMATION

The Company operates in the packaging components industry, which includes the development, manufacture and sale of consumer product dispensing systems.  The Company is organized into three reporting segments.  Operations that sell dispensing systems primarily to the personal care, fragrance/cosmetic and home care markets form the Beauty + Home segment.  Operations that sell dispensing systems primarily to the prescription drug and consumer health care markets form the Pharma segment.  Operations that sell dispensing systems primarily to the food and beverage markets form the Food + Beverage segment.

The accounting policies of the segments are the same as those described in Note 1, Summary of Significant Accounting Policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.  Segment income is defined as earnings before net interest expense, certain corporate expenses, restructuring initiatives and related depreciation and income taxes.

Financial information regarding the Company’s reportable segments is shown below:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Total Revenue:
Beauty + Home	$	378,828		$	372,853		$	746,011		$	753,689
Pharma	182,995			133,033			351,888			273,234
Food + Beverage	83,570			75,684			168,903			151,506
Total Revenue	645,393			581,570			1,266,802			1,178,429
Less: Intersegment Sales:
Beauty + Home	$	3,844		$	3,569		$	7,555		$	7,254
Pharma	64			54			88			212
Food + Beverage	44			444			85			962
Total Intersegment Sales	$	3,952		$	4,067		$	7,728		$	8,428
Net Sales:
Beauty + Home	$	374,984		$	369,284		$	738,456		$	746,435
Pharma	182,931			132,979			351,800			273,022
Food + Beverage	83,526			75,240			168,818			150,544
Net Sales	$	641,441		$	577,503		$	1,259,074		$	1,170,001
Segment Income (1):
Beauty + Home	$	30,339		$	33,546		$	54,754		$	66,518
Pharma	50,437			31,110			96,417			70,482
Food + Beverage	11,864			7,744			20,414			14,532
Restructuring Initiatives and Related Depreciation	(3,067		)	215			(7,593		)	215
Corporate & Other	(8,707		)	(6,964		)	(19,492		)	(15,605		)
Income before interest and taxes	$	80,866		$	65,651		$	144,500		$	136,142
Interest expense, net	(4,596		)	(3,110		)	(8,828		)	(7,324		)
Income before income taxes	$	76,270		$	62,541		$	135,672		$	128,818

(1) The Company evaluates performance of its business units and allocates resources based upon segment income. Segment income is defined as earnings before net interest expense, certain corporate expenses, restructuring initiatives and income taxes. Restructuring Initiatives and Related Depreciation includes the following income/(expense) items for the three and six months ended June 30, 2013 as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
European Operations Optimization (“EOO”) Plan
Depreciation	$	556		$	--		$	1,015		$	--
Employee Severance and Other Costs	2,555			--			6,622			--
Prior Year Initiatives	(44		)	(215		)	(44		)	(215		)
Total Restructuring Initiatives and Related Depreciation Expense	$	3,067		$	(215	)	$	7,593		$	(215	)
Restructuring Initiatives and Related Depreciation Expense by Segment
Beauty + Home	$	3,090		$	(105	)	$	7,616		$	(105	)
Pharma	--			--			--			--
Food + Beverage	(23		)	(110		)	(23		)	(110		)
Total Restructuring Initiatives and Related Depreciation Expense	$	3,067		$	(215	)	$	7,593		$	(215	)