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Business Segments | 12 Months Ended
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Dec. 31, 2018
Segment Reporting [Abstract] |
Business Segments | BUSINESS SEGMENTS The Company's business segments are PE Films, Flexible Packaging Films and Aluminum Extrusions. PE Films is comprised of the following operating segments: personal care materials, surface protection films, and LED-based products. Flexible Packaging Films is comprised of the Company’s polyester films business, Terphane Holdings LLC (“Terphane”). Aluminum Extrusions, which includes Bonnell Aluminum and its operating divisions, AACOA and Futura, produces high-quality, soft-alloy and medium-strength aluminum extrusions primarily for the following markets: building and construction, automotive, and specialty, which consists of consumer durables, machinery and equipment, electrical and distribution end-use products. 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 $106.5 million in 2018, $122.4 million in 2017 and $129.1 million in 2016. 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) |  | 2018 |  | 2017 |  | 2016
PE Films | $ | 332,488 |  |  | $ | 352,459 |  |  | $ | 331,146 |
Flexible Packaging Films | 123,830 |  |  | 108,355 |  |  | 108,028 |
Aluminum Extrusions | 573,126 |  |  | 466,833 |  |  | 360,098 |
Total net sales | 1,029,444 |  |  | 927,647 |  |  | 799,272 |
Add back freight | 36,027 |  |  | 33,683 |  |  | 29,069 |
Sales as shown in consolidated statements of income | $ | 1,065,471 |  |  | $ | 961,330 |  |  | $ | 828,341 |
Operating Profit
(In thousands) |  | 2018 |  | 2017 |  | 2016
PE Films: |  |  |  |  |
Ongoing operations | $ | 36,181 |  |  | $ | 41,546 |  |  | $ | 26,312 |
Plant shutdowns, asset impairments, restructurings and other (a) | (5,905 | ) |  | (4,905 | ) |  | (4,602 | )
Goodwill impairment charge | (46,792 | ) |  | — |  |  | — |
Flexible Packaging Films: |  |  |  |  |
Ongoing operations | 9,892 |  |  | (2,626 | ) |  | 1,774 |
Plant shutdowns, asset impairments, restructurings and other (a) | (45 | ) |  | (89,398 | ) |  | (214 | )
Aluminum Extrusions: |  |  |  |  |
Ongoing operations | 48,613 |  |  | 43,454 |  |  | 37,794 |
Plant shutdowns, asset impairments, restructurings and other (a) | (505 | ) |  | 321 |  |  | (741 | )
Total | 41,439 |  |  | (11,608 | ) |  | 60,323 |
Interest income | 369 |  |  | 209 |  |  | 261 |
Interest expense | 5,702 |  |  | 6,170 |  |  | 3,806 |
Gain on investment in kaléo accounted for under the fair value method (a) | 30,600 |  |  | 33,800 |  |  | 1,600 |
Loss on sale of investment property (a) | (38 | ) |  | — |  |  | — |
Unrealized loss on investment property (a) | 186 |  |  | — |  |  | 1,032 |
Stock option-based compensation expense | 1,221 |  |  | 264 |  |  | 56 |
Corporate expenses, net (a) | 28,893 |  |  | 30,879 |  |  | 29,607 |
Income (loss) before income taxes | 36,368 |  |  | (14,912 | ) |  | 27,683 |
Income tax expense (benefit) (a) | 11,526 |  |  | (53,163 | ) |  | 3,217 |
Net income (loss) | $ | 24,842 |  |  | $ | 38,251 |  |  | $ | 24,466 |
Identifiable Assets
(In thousands) |  | 2018 |  | 2017
PE Films | $ | 231,720 |  |  | $ | 289,514 |
Flexible Packaging Films | 58,964 |  |  | 49,915 |
Aluminum Extrusions | 281,372 |  |  | 268,127 |
Subtotal | 572,056 |  |  | 607,556 |
General corporate (b) | 100,920 |  |  | 111,696 |
Cash and cash equivalents (d) | 34,397 |  |  | 36,491 |
Total | $ | 707,373 |  |  | $ | 755,743 |
|  | Depreciation and Amortization |  | Capital Expenditures
(In thousands) |  | 2018 |  | 2017 |  | 2016 |  | 2018 |  | 2017 |  | 2016
PE Films | $ | 15,513 |  |  | $ | 14,609 |  |  | $ | 13,653 |  |  | $ | 21,998 |  |  | $ | 15,029 |  |  | $ | 25,759 |
Flexible Packaging Films | 1,262 |  |  | 10,443 |  |  | 9,505 |  |  | 5,423 |  |  | 3,619 |  |  | 3,391 |
Aluminum Extrusions | 16,866 |  |  | 15,070 |  |  | 9,173 |  |  | 12,966 |  |  | 25,653 |  |  | 15,918 |
Subtotal | 33,641 |  |  | 40,122 |  |  | 32,331 |  |  | 40,387 |  |  | 44,301 |  |  | 45,068 |
General corporate | 163 |  |  | 155 |  |  | 141 |  |  | 427 |  |  | 61 |  |  | 389 |
Total | $ | 33,804 |  |  | $ | 40,277 |  |  | $ | 32,472 |  |  | $ | 40,814 |  |  | $ | 44,362 |  |  | $ | 45,457 |
See footnotes following the tables.
Net Sales by Geographic Area (d)
(In thousands) |  | 2018 |  | 2017 |  | 2016
United States | $ | 691,232 |  |  | $ | 584,066 |  |  | $ | 475,734 |
Exports from the United States to: |  |  |  |  |
Asia | 75,904 |  |  | 84,846 |  |  | 73,220 |
Canada | 51,984 |  |  | 46,505 |  |  | 45,683 |
Europe | 6,203 |  |  | 8,505 |  |  | 7,348 |
Latin America | 12,106 |  |  | 15,199 |  |  | 5,561 |
Operations outside the United States: |  |  |  |  |
Brazil | 101,217 |  |  | 87,155 |  |  | 90,571 |
The Netherlands | 45,667 |  |  | 54,380 |  |  | 54,352 |
Hungary | 33,512 |  |  | 24,727 |  |  | 24,207 |
China | 7,814 |  |  | 12,199 |  |  | 14,390 |
India | 3,805 |  |  | 10,065 |  |  | 8,206 |
Total (c) | $ | 1,029,444 |  |  | $ | 927,647 |  |  | $ | 799,272 |
|  | Identifiable Assets by Geographic Area (d) |  | Property, Plant & Equipment, Net by Geographic Area (d)
(In thousands) |  | 2018 |  | 2017 |  | 2018 |  | 2017
United States (b) | $ | 454,178 |  |  | $ | 475,844 |  |  | $ | 166,550 |  |  | $ | 156,054 |
Operations outside the United States: |  |  |  |  |  |  |
Brazil | 52,796 |  |  | 49,536 |  |  | 16,072 |  |  | 13,396 |
China | 21,610 |  |  | 28,833 |  |  | 19,213 |  |  | 23,273 |
Hungary | 23,615 |  |  | 28,573 |  |  | 15,436 |  |  | 18,230 |
The Netherlands | 15,020 |  |  | 17,423 |  |  | 6,005 |  |  | 6,423 |
India | 4,837 |  |  | 7,347 |  |  | 3,692 |  |  | 4,628 |
General corporate (b) | 100,920 |  |  | 111,696 |  |  | 1,401 |  |  | 1,087 |
Cash and cash equivalents (d) | 34,397 |  |  | 36,491 |  |  | n/a |  |  | n/a |
Total | $ | 707,373 |  |  | $ | 755,743 |  |  | $ | 228,369 |  |  | $ | 223,091 |
Net Sales by Product Group
(In thousands) |  | 2018 |  | 2017 |  | 2016
PE Films: |  |  |  |  |
Personal care materials | $ | 227,090 |  |  | $ | 246,416 |  |  | $ | 238,213 |
Surface protection films | 98,126 |  |  | 99,079 |  |  | 84,013 |
LED lighting products & other films | 7,272 |  |  | 6,964 |  |  | 8,920 |
Subtotal | 332,488 |  |  | 352,459 |  |  | 331,146 |
Flexible Packaging Films | 123,830 |  |  | 108,355 |  |  | 108,028 |
Aluminum Extrusions: |  |  |  |  |
Nonresidential building & construction | 289,572 |  |  | 239,713 |  |  | 212,863 |
Consumer durables | 66,416 |  |  | 54,126 |  |  | 39,293 |
Automotive | 48,037 |  |  | 38,261 |  |  | 34,700 |
Machinery & equipment | 41,899 |  |  | 33,450 |  |  | 20,872 |
Distribution | 40,924 |  |  | 30,202 |  |  | 20,506 |
Residential building & construction | 43,943 |  |  | 40,354 |  |  | 20,252 |
Electrical | 42,335 |  |  | 30,727 |  |  | 11,612 |
Subtotal | 573,126 |  |  | 466,833 |  |  | 360,098 |
Total | $ | 1,029,444 |  |  | $ | 927,647 |  |  | $ | 799,272 |
See footnotes following the tables and a reconciliation of net sales to sales as shown in the Consolidated Statements of Income in the first table of this Note 5.
(a) | See Notes 1, 3, 4 and 17 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 $81.9 million and $91.8 million as of December 31, 2018 and 2017, respectively. See Note 13 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 $36.0 million in 2018, $33.7 million in 2017 and $29.1 million in 2016.
(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 $31.1 million and $32.7 million at December 31, 2018 and 2017, 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. The facility in Shanghai was shut down in the fourth quarter of 2018.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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