Business Segment Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Business Segment Information

BUSINESS SEGMENT INFORMATION

We are engaged in the packaging industry and report our results in three business segments: metal containers, closures and plastic containers. The metal containers segment manufactures steel and aluminum containers for human and pet food and general line products. The closures segment manufactures an extensive range of metal, composite and plastic closures for food and beverage products. The plastic containers segment manufactures custom designed plastic containers, tubes and closures for personal care, food, health care, pharmaceutical, household and industrial chemical, pet care, agricultural chemical, automotive and marine chemical products. These segments are strategic business operations that are managed separately to maximize the production, technology and marketing of their packaging product. Our metal container business operates primarily in North America and Europe. Our closures business operates in North and South America, Europe and Asia. Our plastic container business operates primarily in North America. The accounting policies of the business segments are the same as those described in Note 1.

Information for each of the past three years for our business segments is as follows:

	Metal Containers		Closures		Plastic Containers		Corporate			Total
	(Dollars in thousands)
2013
Net sales	$	2,341,409	$	720,111	$	646,998	$	—		$	3,708,518
Depreciation and amortization	84,871		35,834		46,807		132			167,644
Rationalization charges	2,490		5,615		3,882		—			11,987
Segment income from operations(1)	236,327		63,046		38,563		(13,756		)	324,180
Segment assets	1,514,823		937,506		753,325		33,886			3,239,540
Capital expenditures	73,764		17,094		11,769		509			103,136
2012
Net sales	$	2,293,749	$	680,031	$	614,538	$	—		$	3,588,318
Depreciation and amortization	87,629		32,427		44,203		756			165,015
Rationalization charges	2,446		2,878		3,336		—			8,660
Segment income from operations(2)	231,456		73,148		30,848		(9,943		)	325,509
Segment assets	1,742,842		639,598		809,937		33,726			3,226,103
Capital expenditures	68,737		19,838		30,405		261			119,241
2011
Net sales	$	2,211,549	$	687,801	$	609,877	$	—		$	3,509,227
Depreciation and amortization	79,655		33,232		44,237		1,677			158,801
Rationalization charges	1,378		1,805		3,996		538			7,717
Segment income from operations(3)	256,336		75,897		12,639		9,249			354,121
Segment assets	1,714,516		632,048		561,312		36,868			2,944,744
Capital expenditures	108,394		24,637		39,904		74			173,009

______________________ 

(1) Metal containers includes plant start-up costs of $0.8 million. Closures includes a charge of $3.0 million for the remeasurement of net assets in Venezuela.    Corporate includes costs attributable to announced acquisitions of $1.5 million.

(2) Metal containers includes plant start-up costs of $6.4 million. Corporate includes costs attributable to announced acquisitions of $1.5 million.

(3) Metal containers includes a charge for the resolution of a past product liability dispute of $3.3 million. Corporate includes income of $25.2 million for proceeds received as a result of the termination of the merger agreement with Graham Packaging, net of costs associated with certain corporate development activities.

Total segment income from operations is reconciled to income before income taxes as follows:

	2013		2012		2011
	(Dollars in thousands)
Total segment income from operations	$	324,180	$	325,509	$	354,121
Interest and other debt expense	69,462		101,722		63,954
Income before income taxes	$	254,718	$	223,787	$	290,167

Total segment assets at December 31 are reconciled to total assets as follows:

	2013		2012
	(Dollars in thousands)
Total segment assets	$	3,239,540	$	3,226,103
Other assets	81,542		67,440
Total assets	$	3,321,082	$	3,293,543

Financial information relating to our operations by geographic area is as follows:

	2013		2012		2011
	(Dollars in thousands)
Net sales:
United States	$	2,925,547	$	2,845,773	$	2,767,293
Foreign:
Europe	601,530		559,818		563,991
Canada	120,536		124,059		128,882
Other	60,905		58,668		49,061
Total net sales from foreign operations	782,971		742,545		741,934
Total net sales	$	3,708,518	$	3,588,318	$	3,509,227
Long-lived assets:
United States	$	681,494	$	679,273
Foreign:
Europe	360,733		341,908
Canada	45,319		46,804
Other	30,897		30,824
Total long-lived assets at foreign operations	436,949		419,536
Total long-lived assets	$	1,118,443	$	1,098,809

Net sales are attributed to the country from which the product was manufactured and shipped.

Sales of our metal containers segment to Nestlé Food Company accounted for 11.5 percent, 11.3 percent and 10.6 percent of our consolidated net sales in 2013, 2012 and 2011, respectively.

Sales and income from operations of our metal container business and part of our closures business are dependent, in part, upon the vegetable and fruit harvests in the United States and, to a lesser extent, in a variety of national growing regions in Europe. The size and quality of these harvests varies from year to year, depending in large part upon the weather conditions in applicable regions. Because of the seasonality of the harvests, we have historically experienced higher unit sales volume in the third quarter of our fiscal year and generated a disproportionate amount of our annual income from operations during that quarter (see Note 17).