(7) SEGMENT AND GEOGRAPHIC INFORMATION

The Company’s operations are conducted within one business segment—the production, manufacture and distribution of flexible plastic packaging products, primarily for the food/beverage, industrial and agricultural markets. The Company operates in the United States and Canada.

 

Operating income includes all costs and expenses directly related to the geographical area.

 

		For the Three Months Ended January 31, 2016
		United States				Canada				Total
		(in thousands)
Sales—external customers		$	240,278			$	13,275			$	253,553
Intercompany sales			7,715				—				7,715
Gross profit			41,355				2,372				43,727
Operating income			16,054				717				16,771

 

		For the Three Months Ended January 31, 2015
		United States				Canada				Total
		(in thousands)
Sales—external customers		$	261,047			$	14,392			$	275,439
Intercompany sales			7,808				—				7,808
Gross profit			30,119				2,445				32,564
Operating income			4,900				673				5,573

Net sales by product line are as follows:

 

		For the Three Months Ended January 31,
		2016				2015
		(in thousands)
Custom films		$	78,810			$	87,458
Stretch (pallet) wrap			74,478				81,526
Food contact			38,934				40,550
Canliners			32,770				33,961
PROformance Films®			12,236				16,811
Printed and converted films			5,349				5,186
Other products and specialty films			10,976				9,947
Total		$	253,553			$	275,439