Segment Reporting

12 Months Ended

Dec. 31, 2012

Segment Reporting

16. Segment Reporting

The Company reports its financial results in four reportable segments – Consumer Packaging, Paper and Industrial Converted Products, Display and Packaging, and Protective Solutions. Effective the fourth quarter of 2012, the Company changed the name of what had been called Packaging Services to Display and Packaging and what had been called Protective Packaging to Protective Solutions to better describe the segments’ business activities. There was no change to the composition of these segments

The Consumer Packaging segment includes the following products and services: round and shaped rigid containers and trays (both composite and thermoformed plastic); blow-molded plastic bottles and jars; extruded and injection-molded plastic products; printed flexible packaging; metal and peelable membrane ends and closures; and global brand artwork management.

The Paper and Industrial Converted Products segment includes the following products: high-performance paper and composite paperboard tubes and cores; fiber-based construction tubes and forms; wooden, metal and composite wire and cable reels and spools; and recycled paperboard, linerboard, corrugating medium, recovered paper and other recycled materials.

The Display and Packaging segment includes the following products and services: designing, manufacturing, assembling, packing and distributing temporary, semipermanent and permanent point-of-purchase displays; supply chain management services, including contract packing, fulfillment and scalable service centers; and paper amenities, such as coasters and glass covers.

The Protective Solutions segment includes the following products: custom-engineered paperboard-based and expanded foam protective packaging; temperature-assurance packaging; and retail security packaging.

Restructuring charges, asset impairment charges, insurance settlement gains, acquisition-related costs, debt tender charges, interest expense and interest income are included in income before income taxes under “Corporate.”

The following table sets forth financial information about each of the Company’s business segments:

Years ended December 31	Consumer Packaging		Paper and Industrial Converted Products		Display and Packaging		Protective Solutions		Corporate			Consolidated
Total Revenue
2012	$	1,920,114	$	1,937,523	$	479,885	$	557,176	$	—		$	4,894,698
2011		1,982,989		1,996,221		472,935		158,936		—			4,611,081
2010		1,802,514		1,845,927		478,348		105,781		—			4,232,570
Intersegment Sales1
2012	$	7,493	$	96,696	$	2,253	$	2,127	$	—		$	108,569
2011		5,691		104,000		1,491		967		—			112,149
2010		4,043		101,958		1,099		1,349		—			108,449
Sales to Unaffiliated Customers
2012	$	1,912,621	$	1,840,827	$	477,632	$	555,049	$	—		$	4,786,129
2011		1,977,298		1,892,220		471,445		157,969		—			4,498,932
2010		1,798,471		1,743,969		477,249		104,432		—			4,124,121
Income Before Income Taxes2
2012	$	176,768	$	141,351	$	18,512	$	38,797	$	(88,354	)	$	287,074
2011		191,475		138,207		21,733		15,228		(82,237	)		284,406
2010		196,005		136,418		14,157		17,505		(109,631	)		254,454
Identifiable Assets3
2012	$	1,298,381	$	1,316,606	$	358,225	$	711,555	$	491,298		$	4,176,065
2011		1,357,691		1,294,712		327,927		721,793		290,676			3,992,799
2010		1,324,301		1,463,651		323,086		16,911		153,065			3,281,014
Depreciation, Depletion and Amortization4
2012	$	75,556	$	83,329	$	7,692	$	33,826	$	—		$	200,403
2011		80,257		86,559		7,434		5,621		—			179,871
2010		74,692		84,363		8,785		1,825		—			169,665
Capital Expenditures
2012	$	58,284	$	112,298	$	3,302	$	14,757	$	26,221		$	214,862
2011		60,795		86,821		4,578		3,884		17,294			173,372
2010		66,323		63,948		8,315		938		6,386			145,910

¹  Intersegment sales are recorded at a market-related transfer price.

²  Included in Corporate are restructuring, asset impairment charges, acquisition-related charges and insurance settlement gains associated with the following segments:

	Consumer Packaging		Paper and Industrial Converted Products		Display and Packaging		Protective Solutions		Corporate		Total
2012	$	9,638	$	12,787	$	1,692	$	3,732	$	519	$	28,369
2011		19,790		6,163		4,575		4,901		8,734		44,163
2010		16,906		6,651		1,969		61		321		25,908

The remaining amounts reported as Corporate consist of interest expense, interest income and debt tender charges.

³  Identifiable assets are those assets used by each segment in its operations. Corporate assets consist primarily of cash and cash equivalents, investments in affiliates, headquarters facilities, deferred income taxes and prepaid expenses.

⁴  Depreciation, depletion and amortization incurred at Corporate are allocated to the reportable segments.

Geographic Regions

Sales to unaffiliated customers and long-lived assets by geographic region are as follows:

	2012		2011		2010
Sales to Unaffiliated Customers
United States	$	3,165,772	$	2,821,043	$	2,659,844
Europe		768,667		777,200		693,719
Canada		338,657		385,805		328,849
All other		513,033		514,884		441,709
Total	$	4,786,129	$	4,498,932	$	4,124,121
Long-lived Assets
United States	$	1,910,824	$	1,884,897	$	1,349,561
Europe		275,884		279,969		289,418
Canada		229,129		253,057		262,903
All other		117,071		113,777		119,690
Total	$	2,532,908	$	2,531,700	$	2,021,572

Sales are attributed to countries/regions based upon the plant location from which products are shipped. Long-lived assets are comprised of property, plant and equipment, goodwill, intangible assets and investment in affiliates (see Notes 6 and 7).