Business Segment Information

12 Months Ended

Dec. 31, 2014

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, 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)
2014
Net sales	$	2,369,684		$	882,934	$	659,172	$	—		$	3,911,790
Depreciation and amortization	70,117			41,571		36,274		127			148,089
Rationalization charges	(440		)	12,256		2,665		—			14,481
Segment income from operations(1)	248,704			75,592		51,495		(14,938		)	360,853
Segment assets	1,555,046			857,375		775,932		33,682			3,222,035
Capital expenditures	94,396			24,160		21,866		7			140,429
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(2)	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(3)	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

______________________ 

(1) Closures includes a loss from operations in Venezuela of $3.1 million. Corporate includes costs attributable to announced acquisitions of $0.5 million.

(2) Metal containers includes new plant start-up costs of $0.8 million. Closures includes a loss from operations in Venezuela of $2.9 million, which includes a charge of $3.0 million for the remeasurement of net assets due to a currency devaluation. Corporate includes costs attributable to announced acquisitions of $1.5 million.

(3) Metal containers includes new plant start-up costs of $6.4 million. Closures includes income from operations in Venezuela of $5.1 million. Corporate includes costs attributable to announced acquisitions of $1.5 million.

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

	2014		2013		2012
	(Dollars in thousands)
Total segment income from operations	$	360,853	$	324,180	$	325,509
Interest and other debt expense	76,301		69,462		101,722
Income before income taxes	$	284,552	$	254,718	$	223,787

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

	2014		2013
	(Dollars in thousands)
Total segment assets	$	3,222,035	$	3,239,540
Other assets	81,889		81,542
Total assets	$	3,303,924	$	3,321,082

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

	2014		2013		2012
	(Dollars in thousands)
Net sales:
United States	$	3,026,352	$	2,925,547	$	2,845,773
Foreign:
Europe	675,447		601,530		559,818
Canada	140,215		120,536		124,059
Other	69,776		60,905		58,668
Total net sales from foreign operations	885,438		782,971		742,545
Total net sales	$	3,911,790	$	3,708,518	$	3,588,318
Long-lived assets:
United States	$	706,168	$	681,494
Foreign:
Europe	288,510		360,733
Canada	40,481		45,319
Other	28,472		30,897
Total long-lived assets at foreign operations	357,463		436,949
Total long-lived assets	$	1,063,631	$	1,118,443

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 10.9 percent, 11.5 percent and 11.3 percent of our consolidated net sales in 2014, 2013 and 2012, 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).