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BUSINESS SEGMENT INFORMATION
 12 Months Ended
Oct. 31, 2012
BUSINESS SEGMENT INFORMATION

NOTE 17 – 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 270,100 acres of timber properties in the southeastern United States, which are actively managed, and 11,860 acres of timber properties in Canada, which are not actively managed. 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 following segment information is presented for each of the three years in the period ended October 31, 2012 (Dollars in millions):

 

     2012     2011     2010  

Net sales:

       

Rigid Industrial Packaging & Service

    $ 3,075.6      $ 3,014.3      $ 2,588.2   

Flexible Products & Services

      453.3        538.0        233.1   

Paper Packaging

      713.8        675.0        624.1   

Land Management

      26.8        20.9        16.4   
  

 

 

    

 

 

    

 

 

  

Total net sales

    $ 4,269.5      $ 4,248.2      $ 3,461.8   
  

 

 

    

 

 

    

 

 

  

Operating profit:

       

Operating profit, before the impact of restructuring charges, restructuring-related inventory charges and acquisition-related costs:

       

Rigid Industrial Packaging & Service

    $ 216.0      $ 255.4      $ 286.5   

Flexible Products & Services

      11.3        41.3        18.8   

Paper Packaging

      83.5        74.4        60.6   

Land Management

      15.3        19.0        9.0   
  

 

 

    

 

 

    

 

 

  

Total operating profit, before the impact of restructuring charges, restructuring-related inventory charges and acquisition-related costs:

      326.1        390.1        374.9   

Restructuring charges:

       

Rigid Industrial Packaging & Service

      22.0        24.1        21.0   

Flexible Products & Services

      11.4        6.9        0.6   

Paper Packaging

      —          (0.5 )      5.1   
  

 

 

    

 

 

    

 

 

  

Total restructuring charges

      33.4        30.5        26.7   
  

 

 

    

 

 

    

 

 

  

Restructuring-related inventory charges:

       

Rigid Industrial Packaging

      —          —          0.1   
  

 

 

    

 

 

    

 

 

  

Total inventory-related restructuring charges

      —          —          0.1   

Acquisition-related costs:

       

Rigid Industrial Packaging & Service

      7.3        9.9        7.6   

Flexible Products & Services

      0.9        14.5        19.5   
  

 

 

    

 

 

    

 

 

  

Total acquisition-related costs

      8.2        24.4        27.1   

Non-cash asset impairment charges:

       

Rigid Industrial Packaging & Service

      —          1.5        —     

Flexible Products & Services

      —          3.0        —     
  

 

 

    

 

 

    

 

 

  

Total non-cash asset impairment charges

      —          4.5        —     

Operating profit (loss):

       

Rigid Industrial Packaging

      186.7        219.9        257.8   

Flexible Products & Services

      (1.0 )      16.9        (1.3 ) 

Paper Packaging

      83.5        74.9        55.5   

Land Management

      15.3        19.0        9.0   
  

 

 

    

 

 

    

 

 

  

Total operating profit

    $ 284.5      $ 330.7      $ 321.0   
  

 

 

    

 

 

    

 

 

  

 

     2012      2011      2010  

Assets:

         

Rigid Industrial Packaging & Services

    $ 2,484.7       $ 2,719.7       $ 2,041.2   

Flexible Products & Services

      363.8         383.5         353.7   

Paper Packaging

      401.7         420.4         435.6   

Land Management

      280.5         280.1         274.4   
  

 

 

     

 

 

     

 

 

  

Total segment

      3,530.7         3,803.7         3,104.9   

Corporate and other

      326.2         385.1         376.6   
  

 

 

     

 

 

     

 

 

  

Total assets

    $ 3,856.9       $ 4,188.8       $ 3,481.5   
  

 

 

     

 

 

     

 

 

  

Depreciation, depletion and amortization expense:

         

Rigid Industrial Packaging & Services

    $ 105.1       $ 93.0       $ 79.1   

Flexible Products & Services

      14.7         16.6         4.9   

Paper Packaging

      31.6         31.6         29.2   

Land Management

      3.3         3.0         2.8   
  

 

 

     

 

 

     

 

 

  

Total depreciation, depletion and amortization expense

    $ 154.7       $ 144.2       $ 116.0   
  

 

 

     

 

 

     

 

 

  

The following geographic information is presented for each of the three years in the period ended October 31, 2012, (Dollars in millions):

 

     2012      2011      2010  

Net Sales

         

North America

    $ 1,983.9       $ 1,932.8       $ 1,732.8   

Europe, Middle East, and Africa

      1,634.9         1,645.6         1,171.4   

Asia Pacific and Latin America

      650.7         669.8         557.6   
  

 

 

     

 

 

     

 

 

  

Total net sales

    $ 4,269.5       $ 4,248.2       $ 3,461.8   
  

 

 

     

 

 

     

 

 

  

The following table presents total assets by geographic region (Dollars in thousands):

 

     2012      2011  

Assets:

      

North America

    $ 1,717.2       $ 1,776.4   

Europe, Middle East, and Africa

      1,555.0         1,752.2   

Asia Pacific and Latin America

      584.7         660.2   
  

 

 

     

 

 

  

Total assets

    $ 3,856.9       $ 4,188.8