|
|
|
|
|
|
|
# of | Purchase Price, | Operating | Tangible | Intangible | ||||||||||||||||||||||||
Acquisitions | net of Cash | Revenue | Profit | Assets, net | Assets | Goodwill | ||||||||||||||||||||||
Total 2010 Acquisitions
|
12 | $ | 176,156 | $ | 268,443 | $ | 19,042 | $ | 104,863 | $ | 49,510 | $ | 120,394 |
Note: |
Purchase price, net of cash acquired, does not factor payments for earn-out provisions on prior acquisitions. Revenue and
operating profit represent activity only in the year of acquisition. Goodwill in 2010 excludes an immaterial acquisition in our Land
Management segment.
|
|
|
April 30, | October 31, | |||||||
2011 | 2010 | |||||||
Finished Goods
|
$ | 104,278 | $ | 92,469 | ||||
Raw materials and work-in-process
|
351,827 | 304,103 | ||||||
|
||||||||
|
$ | 456,105 | $ | 396,572 | ||||
|
|
|
Rigid Industrial | ||||||||||||||||||||
Packaging & | Flexible Products & | |||||||||||||||||||
Services | Services | Paper Packaging | Land Management | Total | ||||||||||||||||
Balance at October 31, 2010
|
$ | 570,661 | $ | 78,261 | $ | 60,653 | $ | 150 | $ | 709,725 | ||||||||||
Goodwill acquired
|
11,383 | — | — | — | 11,383 | |||||||||||||||
Goodwill adjustments
|
102 | (8,616 | ) | — | — | (8,514 | ) | |||||||||||||
Currency translation
|
14,294 | 4,512 | — | — | 18,806 | |||||||||||||||
|
||||||||||||||||||||
Balance at April 30, 2011
|
$ | 596,440 | $ | 74,157 | $ | 60,653 | $ | 150 | $ | 731,400 | ||||||||||
|
Gross Intangible | Accumulated | Net Intangible | ||||||||||
Assets | Amortization | Assets | ||||||||||
October 31, 2010:
|
||||||||||||
Trademark and patents
|
$ | 42,878 | $ | 17,184 | $ | 25,694 | ||||||
Non-compete agreements
|
20,456 | 7,774 | 12,682 | |||||||||
Customer relationships
|
153,131 | 27,091 | 126,040 | |||||||||
Other
|
15,235 | 6,412 | 8,823 | |||||||||
|
||||||||||||
Total
|
$ | 231,700 | $ | 58,461 | $ | 173,239 | ||||||
|
||||||||||||
April 30, 2011:
|
||||||||||||
Trademark and patents
|
$ | 43,823 | $ | 17,290 | $ | 26,533 | ||||||
Non-compete agreements
|
21,545 | 9,441 | 12,104 | |||||||||
Customer relationships
|
158,073 | 32,364 | 125,709 | |||||||||
Other
|
15,292 | 7,549 | 7,743 | |||||||||
|
||||||||||||
Total
|
$ | 238,733 | $ | 66,644 | $ | 172,089 | ||||||
|
|
Non-cash | ||||||||||||||||
Cash Charges | Charges | |||||||||||||||
Employee | ||||||||||||||||
Separation | Asset | |||||||||||||||
Costs | Other Costs | Impairments | Total | |||||||||||||
|
||||||||||||||||
Balance at October 31, 2010
|
$ | 12,668 | $ | 7,570 | $ | — | $ | 20,238 | ||||||||
Costs incurred and charged to expense
|
4,231 | 2,960 | 820 | 8,011 | ||||||||||||
Costs paid or otherwise settled
|
(6,837 | ) | (2,711 | ) | (75 | ) | (9,623 | ) | ||||||||
|
||||||||||||||||
|
||||||||||||||||
Balance at April 30, 2011
|
$ | 10,062 | $ | 7,819 | $ | 745 | $ | 18,626 | ||||||||
|
Amounts Expected | Three months ended | Six months ended | Amounts Remaining | |||||||||||||
to be Incurred | April 30, 2011 | April 30, 2011 | to be Incurred | |||||||||||||
Rigid Industrial
Packaging & Services
|
||||||||||||||||
Employee separation costs
|
$ | 3,564 | $ | 961 | $ | 2,041 | $ | 1,523 | ||||||||
Asset impairments
|
333 | 333 | 333 | — | ||||||||||||
Other restructuring costs
|
8,270 | 1,010 | 2,175 | 6,095 | ||||||||||||
|
||||||||||||||||
|
12,167 | 2,304 | 4,549 | 7,618 | ||||||||||||
Flexible Products & Services
|
||||||||||||||||
Employee separation costs
|
2,328 | 2,100 | 2,181 | 147 | ||||||||||||
Other restructuring costs
|
1,082 | 1,075 | 1,050 | 32 | ||||||||||||
|
||||||||||||||||
|
3,410 | 3,175 | 3,231 | 179 | ||||||||||||
Paper Packaging
|
||||||||||||||||
Employee separation costs
|
— | — | 16 | — | ||||||||||||
Asset impairments
|
— | — | 486 | — | ||||||||||||
Other restructuring costs
|
— | (453 | ) | (265 | ) | — | ||||||||||
|
||||||||||||||||
|
— | (453 | ) | 237 | — | |||||||||||
Land Management
|
||||||||||||||||
Employee separation costs
|
— | (6 | ) | (6 | ) | — | ||||||||||
|
||||||||||||||||
|
$ | 15,577 | $ | 5,020 | $ | 8,011 | $ | 7,797 | ||||||||
|
|
April 30, 2011 | Asset Co. | Trading Co. | Flexible Products JV | |||||||||
Total assets
|
$ | 197,056 | $ | 162,136 | $ | 359,192 | ||||||
Total liabilities
|
94,208 | 63,029 | 157,237 | |||||||||
|
||||||||||||
Net assets
|
$ | 102,848 | $ | 99,107 | $ | 201,955 | ||||||
|
October 31, 2010 | Asset Co. | Trading Co. | Flexible Products JV | |||||||||
Total assets
|
$ | 187,727 | $ | 166,956 | $ | 354,683 | ||||||
Total liabilities
|
79,243 | 65,033 | 144,276 | |||||||||
|
||||||||||||
Net assets
|
$ | 108,484 | $ | 101,923 | $ | 210,407 | ||||||
|
|
April 30, 2011 | October 31, 2010 | |||||||
Credit Agreement
|
$ | 429,152 | $ | 273,700 | ||||
Senior Notes due 2017
|
303,124 | 303,396 | ||||||
Senior Notes due 2019
|
242,613 | 242,306 | ||||||
Trade accounts receivable credit facility
|
116,100 | 135,000 | ||||||
Other long-term debt
|
9,726 | 11,187 | ||||||
|
||||||||
|
1,100,715 | 965,589 | ||||||
Less current portion
|
(12,500 | ) | (12,523 | ) | ||||
|
||||||||
Long-term debt
|
$ | 1,088,215 | $ | 953,066 | ||||
|
|
• |
Level 1 — Observable inputs such as unadjusted quoted prices in active markets for
identical assets and liabilities.
|
• |
Level 2 — Observable inputs other than quoted prices in active markets for identical
assets and liabilities.
|
• |
Level 3 — Unobservable inputs that are supported by little or no market activity and
that are significant to the fair value of the assets and liabilities.
|
Fair Value Measurement | Balance sheet | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Location | ||||||||||||||
Interest rate derivatives
|
$ | — | $ | (1,166 | ) | $ | — | $ | (1,166 | ) | Other long-term liabilities | |||||||
Foreign exchange hedges
|
— | (1,292 | ) | — | (1,292 | ) | Other current liabilities | |||||||||||
Energy hedges
|
— | 4 | — | 4 | Other current liabilities | |||||||||||||
|
||||||||||||||||||
Total*
|
$ | — | $ | (2,454 | ) | $ | — | $ | (2,454 | ) | ||||||||
|
* |
The carrying amounts of cash and cash equivalents, trade accounts receivable, accounts
payable, current liabilities and short-term borrowings at April 30, 2011 approximate their fair
values because of the short-term nature of these items and are not included in this table.
|
|
|
|
Three months ended | Six months ended | |||||||||||||||
April 30 | April 30 | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Service cost
|
$ | 2,239 | $ | 2,293 | $ | 4,478 | $ | 4,586 | ||||||||
Interest cost
|
4,159 | 3,998 | 8,318 | 7,996 | ||||||||||||
Expected return on plan assets
|
(4,928 | ) | (4,524 | ) | (9,856 | ) | (9,048 | ) | ||||||||
Amortization of prior service cost, initial net asset and net actuarial gain
|
2,160 | 1,700 | 4,320 | 3,400 | ||||||||||||
|
||||||||||||||||
Net periodic pension costs
|
$ | 3,630 | $ | 3,467 | $ | 7,260 | $ | 6,934 | ||||||||
|
Three months ended | Six months ended | |||||||||||||||
April 30 | April 30 | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Service cost
|
$ | 2 | $ | 1 | $ | 4 | $ | 2 | ||||||||
Interest cost
|
219 | 283 | 438 | 566 | ||||||||||||
Amortization of prior service cost and recognized actuarial gain
|
(334 | ) | (251 | ) | (668 | ) | (502 | ) | ||||||||
|
||||||||||||||||
Net periodic cost for postretirement benefits
|
$ | (113 | ) | $ | 33 | $ | (226 | ) | $ | 66 | ||||||
|
|
|
|
Three months ended | Six months ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net sales
|
||||||||||||||||
Rigid Industrial Packaging & Services
|
$ | 743,946 | $ | 636,544 | $ | 1,397,837 | $ | 1,201,308 | ||||||||
Flexible Products & Services
|
134,816 | 50,455 | 262,824 | 61,741 | ||||||||||||
Paper Packaging
|
166,540 | 147,527 | 323,304 | 275,790 | ||||||||||||
Land Management
|
5,464 | 2,054 | 10,593 | 7,423 | ||||||||||||
|
||||||||||||||||
Total net sales
|
$ | 1,050,766 | $ | 836,580 | $ | 1,994,558 | $ | 1,546,262 | ||||||||
|
||||||||||||||||
Operating profit:
|
||||||||||||||||
Rigid Industrial Packaging & Services
|
$ | 66,141 | $ | 64,264 | $ | 112,203 | $ | 112,905 | ||||||||
Flexible Products & Services
|
1,974 | 368 | 3,426 | (4,310 | ) | |||||||||||
Paper Packaging
|
20,856 | 7,635 | 38,996 | 11,334 | ||||||||||||
Land Management
|
2,311 | 492 | 5,377 | 3,491 | ||||||||||||
|
||||||||||||||||
Total operating profit
|
91,282 | 72,759 | 160,002 | 123,420 | ||||||||||||
|
||||||||||||||||
Restructuring charges:
|
||||||||||||||||
Rigid Industrial Packaging & Services
|
2,304 | 4,718 | 4,549 | 10,674 | ||||||||||||
Flexible Products & Services
|
3,175 | — | 3,231 | — | ||||||||||||
Paper Packaging
|
(453 | ) | 72 | 237 | 113 | |||||||||||
Land Management
|
(6 | ) | — | (6 | ) | — | ||||||||||
|
||||||||||||||||
Total restructuring charges
|
5,020 | 4,790 | 8,011 | 10,787 | ||||||||||||
|
||||||||||||||||
Restructuring-related inventory charges:
|
||||||||||||||||
Rigid Industrial Packaging & Services
|
— | 37 | — | 37 | ||||||||||||
|
||||||||||||||||
Total restructuring-related inventory charges
|
— | 37 | — | 37 | ||||||||||||
|
||||||||||||||||
Acquisition-related costs:
|
||||||||||||||||
Rigid Industrial Packaging & Services
|
2,699 | 941 | 4,208 | 3,803 | ||||||||||||
Flexible Products & Services
|
5,322 | 3,646 | 12,357 | 10,840 | ||||||||||||
|
||||||||||||||||
Total acquisition-related costs
|
8,021 | 4,587 | 16,565 | 14,643 | ||||||||||||
|
||||||||||||||||
Operating profit before special items:
|
||||||||||||||||
Rigid Industrial Packaging & Services
|
71,144 | 69,960 | 120,960 | 127,419 | ||||||||||||
Flexible Products & Services
|
10,471 | 4,014 | 19,014 | 6,530 | ||||||||||||
Paper Packaging
|
20,403 | 7,707 | 39,233 | 11,447 | ||||||||||||
Land Management
|
2,305 | 492 | 5,371 | 3,491 | ||||||||||||
|
||||||||||||||||
Total operating profit before special items*
|
$ | 104,323 | $ | 82,173 | $ | 184,578 | $ | 148,887 | ||||||||
|
||||||||||||||||
Depreciation, depletion and amortization expense:
|
||||||||||||||||
Rigid Industrial Packaging & Services
|
$ | 21,806 | $ | 19,938 | $ | 42,197 | $ | 41,191 | ||||||||
Flexible Products & Services
|
4,107 | 795 | 8,320 | 980 | ||||||||||||
Paper Packaging
|
7,875 | 6,676 | 15,577 | 13,810 | ||||||||||||
Land Management
|
806 | 264 | 1,608 | 1,198 | ||||||||||||
|
||||||||||||||||
Total depreciation, depletion and amortization expense
|
$ | 34,594 | $ | 27,673 | $ | 67,702 | $ | 57,179 | ||||||||
|
* |
Total operating profit before special items represents operating profit before the impact of
restructuring charges, restructuring-related inventory charges and acquisition-related costs.
|
Three months ended April 30, | Six months ended April 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net sales:
|
||||||||||||||||
North America
|
$ | 483,932 | $ | 420,907 | $ | 923,780 | $ | 781,827 | ||||||||
Europe, Middle East and Africa
|
406,499 | 288,604 | 751,678 | 512,918 | ||||||||||||
Asia Pacific and Latin America
|
160,335 | 127,069 | 319,100 | 251,517 | ||||||||||||
|
||||||||||||||||
Total net sales
|
$ | 1,050,766 | $ | 836,580 | $ | 1,994,558 | $ | 1,546,262 | ||||||||
|
April 30, 2011 | October 31, 2010 | |||||||
Assets:
|
||||||||
Rigid Industrial Packaging & Services
|
$ | 2,237,824 | $ | 2,058,165 | ||||
Flexible Products & Services
|
377,588 | 353,715 | ||||||
Paper Packaging
|
445,209 | 435,555 | ||||||
Land Management
|
275,678 | 274,352 | ||||||
|
||||||||
Total segments
|
3,336,299 | 3,121,787 | ||||||
|
||||||||
Corporate and other
|
377,220 | 376,658 | ||||||
|
||||||||
Total assets
|
$ | 3,713,519 | $ | 3,498,445 | ||||
|
||||||||
|
||||||||
Assets:
|
||||||||
North America
|
$ | 1,515,945 | $ | 1,895,475 | ||||
Europe, Middle East and Africa
|
1,302,416 | 1,012,131 | ||||||
Asia Pacific and Latin America
|
895,158 | 590,839 | ||||||
|
||||||||
Total assets
|
$ | 3,713,519 | $ | 3,498,445 | ||||
|