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. |