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.