Business Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Business Segment Information

BUSINESS SEGMENT INFORMATION

We are engaged in the packaging industry and report our results in three business segments, which are our reportable 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 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)
2015
Net sales	$	2,365,268		$	804,988	$	593,715	$	—		$	3,763,971
Depreciation and amortization	70,685			37,720		33,665		122			142,192
Rationalization charges	41			1,684		12,682		—			14,407
Segment income from operations	236,421			91,823		7,768		(16,200		)	319,812
Segment assets	1,542,120			834,114		735,182		33,209			3,144,625
Capital expenditures	146,972			41,796		48,510		24			237,302
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	1,544,869			857,375		773,753		33,682			3,209,679
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	1,503,270			937,506		750,955		33,886			3,225,617
Capital expenditures	73,764			17,094		11,769		509			103,136

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(1) Closures includes a loss from operations in Venezuela of $3.1 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.

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

	2015		2014		2013
	(Dollars in thousands)
Total segment income from operations	$	319,812	$	360,853	$	324,180
Interest and other debt expense	66,926		76,301		69,462
Income before income taxes	$	252,886	$	284,552	$	254,718

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

	2015		2014
	(Dollars in thousands)
Total segment assets	$	3,144,625	$	3,209,679
Other assets	48,054		64,457
Total assets	$	3,192,679	$	3,274,136

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

	2015		2014		2013
	(Dollars in thousands)
Net sales:
United States	$	3,014,068	$	3,026,352	$	2,925,547
Foreign:
Europe	576,688		675,447		601,530
Canada	121,709		140,215		120,536
Other	51,506		69,776		60,905
Total net sales from foreign operations	749,903		885,438		782,971
Total net sales	$	3,763,971	$	3,911,790	$	3,708,518
Long-lived assets:
United States	$	805,219	$	706,168
Foreign:
Europe	263,425		288,510
Canada	31,305		40,481
Other	25,484		28,472
Total long-lived assets at foreign operations	320,214		357,463
Total long-lived assets	$	1,125,433	$	1,063,631

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 11.1 percent, 10.9 percent and 11.5 percent of our consolidated net sales in 2015, 2014 and 2013, 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).