XML 46 R26.htm IDEA: XBRL DOCUMENT v2.4.0.8
Business Segment Information
 12 Months Ended
Oct. 31, 2013
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, 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 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 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 252,475 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 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.

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.

 

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 following segment information is presented for each of the three years in the period ended October 31, 2013 (Dollars in millions):

 

     2013     2012     2011  

Net sales:

       

Rigid Industrial Packaging & Service

    $ 3,062.1      $ 3,075.6      $ 3,014.3   

Flexible Products & Services

      448.7        453.3        538.0   

Paper Packaging

      809.5        713.8        675.0   

Land Management

      33.1        26.8        20.9   
  

 

 

    

 

 

    

 

 

  

Total net sales

    $ 4,353.4      $ 4,269.5      $ 4,248.2   
  

 

 

    

 

 

    

 

 

  

Operating profit (loss):

       

Rigid Industrial Packaging

      196.0        185.0        219.4   

Flexible Products & Services

      (13.1 )      (1.0 )      16.9   

Paper Packaging

      123.8        83.5        74.9   

Land Management

      32.9        15.3        19.0   
  

 

 

    

 

 

    

 

 

  

Total operating profit

    $ 339.6      $ 282.8      $ 330.2   
  

 

 

    

 

 

    

 

 

  

Assets:

       

Rigid Industrial Packaging & Services

    $ 2,441.6      $ 2,481.2      $ 2,717.8   

Flexible Products & Services

      367.3        363.8        383.5   

Paper Packaging

      413.3        401.7        420.4   

Land Management

      280.7        280.5        280.1   
  

 

 

    

 

 

    

 

 

  

Total segment

      3,502.9        3,527.2        3,801.8   

Corporate and other

      379.3        326.2        385.1   
  

 

 

    

 

 

    

 

 

  

Total assets

    $ 3,882.2      $ 3,853.4      $ 4,186.9   
  

 

 

    

 

 

    

 

 

  

Depreciation, depletion and amortization expense:

       

Rigid Industrial Packaging & Services

    $ 106.7      $ 105.2      $ 93.1   

Flexible Products & Services

      15.2        14.7        16.6   

Paper Packaging

      30.3        31.6        31.6   

Land Management

      4.7        3.3        3.0   
  

 

 

    

 

 

    

 

 

  

Total depreciation, depletion and amortization expense

    $ 156.9      $ 154.8      $ 144.3   
  

 

 

    

 

 

    

 

 

  

Capital Expenditures

       

Rigid Industrial Packaging & Services

    $ 64.8      $ 86.7      $ 96.9   

Flexible Products & Services

      14.0        39.0        36.5   

Paper Packaging

      21.7        20.1        18.5   

Land Management

      13.0        6.9        6.7   
  

 

 

    

 

 

    

 

 

  

Total segment

      113.5        152.7        158.6   

Corporate and other

      31.9        17.0        7.2   
  

 

 

    

 

 

    

 

 

  

Total capital expenditures

    $ 145.4      $ 169.7      $ 165.8   
  

 

 

    

 

 

    

 

 

  

The following geographic information is presented for each of the three years in the period ended October 31, 2013 (Dollars in millions):

 

     2013      2012      2011  

Net Sales

         

North America

    $ 2,079.1       $ 1,983.9       $ 1,932.8   

Europe, Middle East, and Africa

      1,610.6         1,634.9         1,645.6   

Asia Pacific and Latin America

      663.7         650.7         669.8   
  

 

 

     

 

 

     

 

 

  

Total net sales

    $ 4,353.4       $ 4,269.5       $ 4,248.2   
  

 

 

     

 

 

     

 

 

  

 

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

 

     2013      2012  

Assets:

      

North America

    $ 1,818.2       $ 1,717.2   

Europe, Middle East, and Africa

      1,517.4         1,555.0   

Asia Pacific and Latin America

      546.6         581.2   
  

 

 

     

 

 

  

Total assets

    $ 3,882.2       $ 3,853.4