Business Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

Reportable business segment information for the three and nine months ended September 30 was as follows:

	Metal Containers		Closures		Plastic Containers		Corporate			Total
	(Dollars in thousands)
Three Months Ended September 30, 2014
Net sales	$	827,675	$	241,021	$	159,748	$	—		$	1,228,444
Depreciation and amortization(1)	17,550		9,930		9,146		32			36,658
Rationalization charges	—		1,218		1,310		—			2,528
Segment income from operations(2)(3)	112,229		27,645		13,129		(5,368		)	147,635
Three Months Ended September 30, 2013
Net sales	$	831,094	$	185,249	$	151,578	$	—		$	1,167,921
Depreciation and amortization(1)	20,243		8,310		11,765		33			40,351
Rationalization charges	344		988		—		—			1,332
Segment income from operations(2)(3)	108,322		23,053		8,557		(4,073		)	135,859
Nine Months Ended September 30, 2014
Net sales	$	1,814,764	$	687,050	$	499,812	$	—		$	3,001,626
Depreciation and amortization(1)	52,121		31,482		27,354		95			111,052
Rationalization charges	—		2,706		2,272		—			4,978
Segment income from operations(2)(3)	203,582		70,639		38,946		(11,442		)	301,725
Nine Months Ended September 30, 2013
Net sales	$	1,826,026	$	527,835	$	489,830	$	—		$	2,843,691
Depreciation and amortization(1)	63,770		24,862		35,025		100			123,757
Rationalization charges	1,727		1,233		656		—			3,616
Segment income from operations(2)(3)(4)	193,619		55,367		30,431		(10,529		)	268,888

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⁽¹⁾  Depreciation and amortization excludes amortization of debt issuance costs of $1.0 million and $1.1 million for the three months ended September 30, 2014 and 2013, respectively, and $3.2 million and $3.3 million for the nine months ended September 30, 2014 and 2013, respectively.

⁽²⁾  Income from operations of the closures segment includes income from operations in Venezuela of $0.8 million and $0.1 million for the three months ended September 30, 2014 and 2013, respectively, and losses from operations in Venezuela of $2.6 million and $5.3 million for the nine months ended September 30, 2014 and 2013, respectively, which for the nine months ended September 30, 2013 includes a charge of $3.0 million for the remeasurement of net assets in Venezuela due to the devaluation of the official Bolivar exchange rate.

⁽³⁾  Income from operations for corporate includes acquisition costs attributable to announced acquisitions of $0.3 million and $1.0 million for the three months ended September 30, 2014 and 2013, respectively, and $0.5 million and $1.2 million for the nine months ended September 30, 2014 and 2013, respectively.

⁽⁴⁾  Income from operations of the metal containers segment includes plant start-up costs of $0.8 million for the nine months ended September 30, 2013.

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

	Three Months Ended				Nine Months Ended
	Sept. 30, 2014		Sept. 30, 2013		Sept. 30, 2014		Sept. 30, 2013
	(Dollars in thousands)
Total segment income from operations	$	147,635	$	135,859	$	301,725	$	268,888
Interest and other debt expense	19,276		16,982		58,394		49,844
Income before income taxes	$	128,359	$	118,877	$	243,331	$	219,044

Sales and income from operations of our metal container business and part of our closures business are dependent, in part, upon fruit and vegetable harvests.  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.