Business Segments

6 Months Ended

Jun. 30, 2013

16.

Business Segments

Management reviews operations along our product lines in two reportable segments: metal packaging and plastic packaging. We differentiate the segments based on the nature of the products they manufacture. The primary raw materials and manufacturing processes are unique for each segment. We describe our business segments in further detail in Note 19, “Business Segments,” of Notes to Consolidated Financial Statements included in the Annual Report. As discussed in Note 3, results attributable to the Ropak Acquisition have been included in the plastic packaging segment.

The following tables set forth certain financial information attributable to our business segments for the periods indicated:


	Successor					Predecessor
($ in millions)	Three Months Ended June 30, 2013		Six Months Ended June 30, 2013			Three Months Ended June 30, 2012		Six Months Ended June 30, 2012
Net Sales (1)
Metal packaging	$	189.4	$	372.5		$	201.0	$	389.8
Plastic packaging		203.1		374.0			128.7		249.6

Consolidated net sales	$	392.5	$	746.5		$	329.7	$	639.4


Segment earnings (2)
Metal packaging	$	42.3	$	79.6		$	44.7	$	82.4
Plastic packaging		24.9		39.7			7.2		14.9

Segment earnings	$	67.2	$	119.3		$	51.9	$	97.3

Reconciliation of segment earnings to (loss) income before taxes
Segment earnings	$	67.2	$	119.3		$	51.9	$	97.3
Depreciation and amortization expense		36.0		69.8			21.7		43.4
Corporate undisturbed expenses (3)		7.7		12.4			3.7		6.9
Other undistributed expenses (4)		21.4		42.6			12.9		15.4

Income (loss) before income taxes	$	2.1	$	(5.5	)	$	13.6	$	31.6

Depreciation and amortization
Metal packaging	$	22.9	$	45.6		$	12.1	$	24.2
Plastic packaging		11.8		21.7			8.5		17.1

Segment depreciation and amortization		34.7		67.3			20.6		41.3
Corporate		1.3		2.5			1.1		2.1

Consolidated depreciation and amortization	$	36.0	$	69.8		$	21.7	$	43.4

(1)	In the periods presented, there were no significant intersegment sales.

(2)	Management uses a measure of segment earnings to evaluate segment performance. We calculate segment earnings as net sales less costs of products sold and selling expenses, each as related to the applicable segment. Segment earnings exclude depreciation and amortization.

(3)	Corporate undistributed expenses include share-based compensation expense and certain other general administrative expenses not allocated to the segments for reporting purposes. Corporate undistributed expenses exclude depreciation and amortization.

(4)	Other undistributed expenses not allocated to segments include the following: restructuring expense, interest expense, business acquisition costs, management fee expense, gain on disposition of equipment, and other expense/income.

The following table sets forth total assets attributable to our business segments as of the dates indicated:


($ in millions)	June 30, 2013		December 31, 2012 (Revised)
Total assets
Metal packaging	$	1,265.4	$	1,315.5
Plastic packaging		496.7		192.2

Segment total assets		1,762.1		1,507.7
Corporate		322.7		207.6

Total assets	$	2,084.8	$	1,715.3

The following table sets forth the percentage of net sales by customer geographic location for the periods indicated:


	Successor						Predecessor
	Three Months Ended June 30, 2013			Six Months Ended June 30, 2013			Three Months Ended June 30, 2012			Six Months Ended June 30, 2012
Consolidated net sales
United States		88	%		88	%		93	%		93	%
Canada		11			11			6			6
Other		1			1			1			1

Total		100	%		100	%		100	%		100	%


Metal packaging net sales
United States		91	%		91	%		96	%		93	%
Canada		8			8			3			6
Other		1			1			1			1

Total		100	%		100	%		100	%		100	%


Plastic packaging net sales
United States		85	%		86	%		93	%		93	%
Canada		14			13			7			7
Other		1			1			—			—

Total		100	%		100	%		100	%		100	%

- 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

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+ Details

BWAY INTERMEDIATE COMPANY, INC. 10-Q