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Segment Reporting | 6 Months Ended
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Jun. 30, 2018
Segment Reporting [Abstract] |
Segment Reporting | The Company’s business segments are PE Films, Flexible Packaging Films and Aluminum Extrusions. Information by business segment is reported below. There are 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 for purposes of assessing performance. The following table presents net sales and operating profit by segment for the three and six-month periods ended June 30, 2018 and 2017:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) | 2018 |  | 2017 |  | 2018 |  | 2017
Net Sales |  |  |  |  |  |  |
PE Films | $ | 82,457 |  |  | $ | 89,639 |  |  | $ | 175,707 |  |  | $ | 176,050 |
Flexible Packaging Films | 28,304 |  |  | 26,588 |  |  | 56,741 |  |  | 53,297 |
Aluminum Extrusions | 144,558 |  |  | 123,208 |  |  | 272,793 |  |  | 222,807 |
Total net sales | 255,319 |  |  | 239,435 |  |  | 505,241 |  |  | 452,154 |
Add back freight | 8,440 |  |  | 7,912 |  |  | 17,229 |  |  | 16,218 |
Sales as shown in the Consolidated Statements of Income | $ | 263,759 |  |  | $ | 247,347 |  |  | $ | 522,470 |  |  | $ | 468,372 |
Operating Profit (Loss) |  |  |  |  |  |  |
PE Films: |  |  |  |  |  |  |
Ongoing operations | $ | 8,678 |  |  | $ | 10,682 |  |  | $ | 22,712 |  |  | $ | 19,713 |
Plant shutdowns, asset impairments, restructurings and other | (1,135 | ) |  | (904 | ) |  | (2,187 | ) |  | (2,972 | )
Flexible Packaging Films: |  |  |  |  |  |  |
Ongoing operations | 1,294 |  |  | (319 | ) |  | 3,008 |  |  | (2,317 | )
Plant shutdowns, asset impairments, restructurings and other | — |  |  | 11,856 |  |  | — |  |  | 11,856 |
Aluminum Extrusions: |  |  |  |  |  |  |
Ongoing operations | 13,156 |  |  | 11,772 |  |  | 23,355 |  |  | 21,601 |
Plant shutdowns, asset impairments, restructurings and other | (46 | ) |  | 1,571 |  |  | (99 | ) |  | (2,769 | )
Total | 21,947 |  |  | 34,658 |  |  | 46,789 |  |  | 45,112 |
Interest income | 228 |  |  | 55 |  |  | 284 |  |  | 129 |
Interest expense | 1,577 |  |  | 1,642 |  |  | 3,221 |  |  | 2,822 |
Gain (loss) on investment in kaléo accounted for under fair value method | 5,800 |  |  | 21,500 |  |  | 14,000 |  |  | 24,800 |
Stock option-based compensation costs | 305 |  |  | 38 |  |  | 391 |  |  | 41 |
Corporate expenses, net | 6,824 |  |  | 7,502 |  |  | 14,740 |  |  | 14,026 |
Income before income taxes | 19,269 |  |  | 47,031 |  |  | 42,721 |  |  | 53,152 |
Income taxes | 4,547 |  |  | 2,827 |  |  | 9,834 |  |  | 5,246 |
Net income | $ | 14,722 |  |  | $ | 44,204 |  |  | $ | 32,887 |  |  | $ | 47,906 |
The following table presents identifiable assets by segment at June 30, 2018 and December 31, 2017:
(In thousands) | June 30, 2018 |  | December 31, 2017
PE Films | $ | 283,536 |  |  | $ | 289,514 |
Flexible Packaging Films | 48,845 |  |  | 49,915 |
Aluminum Extrusions | 274,577 |  |  | 268,127 |
Subtotal | 606,958 |  |  | 607,556 |
General corporate | 85,210 |  |  | 111,696 |
Cash and cash equivalents | 62,321 |  |  | 36,491 |
Total | $ | 754,489 |  |  | $ | 755,743 |
The following tables disaggregate the Company’s revenue by geographic area and product group for the three and six months ended June 30, 2018 and 2017:
Net Sales by Geographic Area (b)
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) | 2018 |  | 2017 |  | 2018 |  | 2017(c)
United States | $ | 171,185 |  |  | $ | 154,710 |  |  | $ | 330,747 |  |  | $ | 284,611 |
Exports from the United States to: |  |  |  |  |  |  |
Asia | 18,884 |  |  | 21,165 |  |  | 42,476 |  |  | 39,887 |
Canada | 14,239 |  |  | 11,510 |  |  | 27,537 |  |  | 24,602 |
Europe | 1,697 |  |  | 2,275 |  |  | 3,519 |  |  | 4,633 |
Latin America | 3,654 |  |  | 3,991 |  |  | 6,706 |  |  | 7,721 |
Operations outside the United States: |  |  |  |  |  |  |
Brazil | 23,659 |  |  | 21,294 |  |  | 46,811 |  |  | 42,653 |
The Netherlands | 11,394 |  |  | 12,927 |  |  | 23,322 |  |  | 25,687 |
Hungary | 8,519 |  |  | 6,138 |  |  | 17,337 |  |  | 11,329 |
China | 1,692 |  |  | 2,710 |  |  | 3,966 |  |  | 6,115 |
India | 396 |  |  | 2,715 |  |  | 2,820 |  |  | 4,916 |
Total (a) | $ | 255,319 |  |  | $ | 239,435 |  |  | $ | 505,241 |  |  | $ | 452,154 |
Net Sales by Product Group
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) | 2018 |  | 2017 |  | 2018 |  | 2017(c)
PE Films: |  |  |  |  |  |  |
Personal care materials | 55,985 |  |  | 62,790 |  |  | 117,629 |  |  | 124,088 |
Surface protection films | 24,918 |  |  | 24,996 |  |  | 54,733 |  |  | 48,437 |
LED lighting products & other films | 1,555 |  |  | 1,853 |  |  | 3,345 |  |  | 3,526 |
Subtotal | 82,458 |  |  | 89,639 |  |  | 175,707 |  |  | 176,051 |
Flexible Packaging Films | 28,304 |  |  | 26,588 |  |  | 56,741 |  |  | 53,297 |
Aluminum Extrusions: |  |  |  |  |  |  |
Nonresidential building & construction | 72,442 |  |  | 61,173 |  |  | 137,629 |  |  | 114,347 |
Consumer durables | 17,161 |  |  | 14,024 |  |  | 32,309 |  |  | 25,766 |
Distribution | 12,031 |  |  | 9,408 |  |  | 22,961 |  |  | 15,842 |
Automotive | 11,157 |  |  | 10,112 |  |  | 20,787 |  |  | 20,265 |
Residential building & construction | 12,343 |  |  | 13,068 |  |  | 21,813 |  |  | 19,528 |
Machinery & equipment | 9,867 |  |  | 8,606 |  |  | 19,144 |  |  | 15,545 |
Electrical | 9,556 |  |  | 6,817 |  |  | 18,150 |  |  | 11,513 |
Subtotal | 144,557 |  |  | 123,208 |  |  | 272,793 |  |  | 222,806 |
Total | 255,319 |  |  | 239,435 |  |  | 505,241 |  |  | 452,154 |
See a reconciliation of net sales to sales as shown in the Condensed Consolidated Statements of Income on the previous page.
(a) | 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 $8.4 million and $17.2 million in the three months and six months ended June 30, 2018 and $7.9 million and $16.2 million in the three months and six months ended June 30, 2017, respectively.
(b) | 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.
(c) | As disclosed in Note 1, prior period amounts have not been adjusted under the modified retrospective method.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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