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Business Segments
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Business Segments
BUSINESS SEGMENTS
Tredegar has historically reported two business segments: Film Products and Aluminum Extrusions. In the third quarter of 2015, the Company divided Film Products into two separate reportable segments: PE Films and Flexible Packaging Films. PE Films is comprised of the following operating segments: personal care materials, surface protection films, and LED lighting products. Flexible Packaging Films is comprised of the Company’s polyester films business, Terphane Holdings LLC (“Terphane”), which was acquired by Film Products in October 2011. Therefore, the Company's business segments are now PE Films, Flexible Packaging Films and Aluminum Extrusions. All historical results for PE Films and Flexible Packaging Films have been separately presented to conform with the new presentation of segments.
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 (Tredegar’s President and Chief Executive Officer) for purposes of assessing performance. PE Films’ net sales to The Procter & Gamble Company (“P&G”) totaled $129.1 million in 2016, $163.9 million in 2015 and $220.8 million in 2014. 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)
 
2016
 
2015
 
2014
PE Films
$
331,146

 
$
385,550

 
$
464,339

Flexible Packaging Films
108,028

 
105,332

 
114,348

Aluminum Extrusions
360,098

 
375,457

 
344,346

Total net sales
799,272

 
866,339

 
923,033

Add back freight
29,069

 
29,838

 
28,793

Sales as shown in consolidated statements of income
$
828,341

 
$
896,177

 
$
951,826

Operating Profit
(In Thousands)
 
2016
 
2015
 
2014
PE Films:
 
 
 
 
 
Ongoing operations
$
26,312

 
$
48,275

 
$
60,971

Plant shutdowns, asset impairments, restructurings and other (a)
(4,602
)
 
(4,180
)
 
(12,236
)
Flexible Packaging Films:
 
 
 
 
 
Ongoing operations
1,774

 
5,453

 
(2,917
)
Plant shutdowns, asset impairments, restructurings and other (a)
(214
)
 
(185
)
 
(591
)
Goodwill impairment charge
—

 
(44,465
)
 
—

Aluminum Extrusions:
 
 
 
 
 
Ongoing operations
37,794

 
30,432

 
25,664

Plant shutdowns, asset impairments, restructurings and other (a)
(741
)
 
(708
)
 
(976
)
Total
60,323

 
34,622

 
69,915

Interest income
261

 
294

 
588

Interest expense
3,806

 
3,502

 
2,713

Gain (loss) on investment accounted for under the fair value method (a)
1,600

 
(20,500
)
 
2,000

Gain on sale of investment property (a)
—

 
—

 
1,208

Unrealized loss on investment property (a)
1,032

 
—

 
—

Stock option-based compensation expense
56

 
483

 
1,272

Corporate expenses, net (a)
29,607

 
33,638

 
24,310

Income (loss) from continuing operations before income taxes
27,683

 
(23,207
)
 
45,416

Income taxes (a)
3,217

 
8,928

 
9,387

Income (loss) from continuing operations
24,466

 
(32,135
)
 
36,029

Income (loss) from discontinued operations (a)
—

 
—

 
850

Net income (loss)
$
24,466

 
$
(32,135
)
 
$
36,879

Identifiable Assets
(In Thousands)
 
2016
 
2015
PE Films
$
278,558

 
$
270,236

Flexible Packaging Films
156,836

 
146,253

Aluminum Extrusions
147,639

 
136,935

Subtotal
583,033

 
553,424

General corporate (b)
38,618

 
25,680

Cash and cash equivalents (d)
29,511

 
44,156

Total
$
651,162

 
$
623,260


 
 
Depreciation and Amortization
 
Capital Expenditures
(In Thousands)
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
PE Films
$
13,653

 
$
15,480

 
$
21,399

 
$
25,759

 
$
21,218

 
$
17,000

Flexible Packaging Films
9,505

 
9,697

 
9,331

 
3,391

 
3,489

 
21,806

Aluminum Extrusions
9,173

 
9,698

 
9,974

 
15,918

 
8,124

 
6,092

Subtotal
32,331

 
34,875

 
40,704

 
45,068

 
32,831

 
44,898

General corporate
141

 
107

 
114

 
389

 
—

 
—

Total
$
32,472

 
$
34,982

 
$
40,818

 
$
45,457

 
$
32,831

 
$
44,898



See footnotes on page 68.

Net Sales by Geographic Area (d)
(In Thousands)
 
2016
 
2015
 
2014
United States
$
475,734

 
$
528,881

 
$
542,395

Exports from the United States to:
 
 
 
 
 
Asia
73,220

 
75,383

 
72,597

Canada
45,683

 
45,290

 
47,391

Europe
7,348

 
9,809

 
10,874

Latin America
5,561

 
3,464

 
3,116

Operations outside the United States:
 
 
 
 
 
Brazil
90,571

 
89,829

 
97,954

The Netherlands
54,352

 
53,211

 
74,329

Hungary
24,207

 
32,612

 
39,457

China
14,390

 
18,919

 
26,109

India
8,206

 
8,941

 
8,811

Total (c)
$
799,272

 
$
866,339

 
$
923,033


 
 
Identifiable Assets
by Geographic Area (d)
 
Property, Plant & Equipment,
Net by Geographic Area (d)
(In Thousands)
 
2016
 
2015
 
2016
 
2015
United States (b)
$
367,406

 
$
351,115

 
$
118,661

 
$
104,380

Operations outside the United States:
 
 
 
 
 
 
 
Brazil
139,163

 
126,478

 
91,553

 
78,845

China
29,751

 
34,409

 
23,759

 
27,563

Hungary
20,610

 
14,798

 
15,117

 
8,135

The Netherlands
19,484

 
19,372

 
5,784

 
6,224

India
6,619

 
7,252

 
4,670

 
5,234

General corporate (b)
38,618

 
25,680

 
1,181

 
934

Cash and cash equivalents (d)
29,511

 
44,156

 
n/a

 
n/a

Total
$
651,162

 
$
623,260

 
$
260,725

 
$
231,315

Net Sales by Product Group
(In Thousands)
 
2016
 
2015
 
2014
PE Films:
 
 
 
 
 
Personal care materials
$
238,213

 
$
287,768

 
$
367,451

Surface protection films
84,013

 
90,197

 
90,129

LED lighting products & other films
8,920

 
7,585

 
6,759

Subtotal
331,146

 
385,550

 
464,339

Flexible Packaging Films
108,028

 
105,332

 
114,348

Aluminum Extrusions:
 
 
 
 
 
Nonresidential building & construction
212,863

 
221,363

 
200,707

Consumer durables
39,293

 
41,835

 
44,897

Automotive
34,700

 
30,250

 
22,272

Machinery & equipment
20,872

 
18,102

 
26,907

Distribution
20,506

 
18,659

 
15,318

Residential building & construction
20,252

 
22,737

 
21,470

Electrical
11,612

 
22,511

 
12,775

Subtotal
360,098

 
375,457

 
344,346

Total
$
799,272

 
$
866,339

 
$
923,033


See footnotes on page 68 and a reconciliation of net sales to sales as shown in the Consolidated Statements of Income on page 65.

(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 $88.6 million and $93.2 million as of December 31, 2016 and 2015, 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 $29.1 million in 2016, $29.8 million in 2015 and $28.8 million in 2014.
(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 $23.8 million and $27.7 million at December 31, 2016 and 2015, respectively. Export sales relate almost entirely to PE Films. Operations outside the U.S. in The Netherlands, Hungary, China and India also relate to PE Films. Operations in Brazil are primarily related to Flexible Packaging Films, but also include PE Films operations. 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.