Business Segment Information

12 Months Ended

Dec. 31, 2016

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)
2016
Net sales	$	2,271,933		$	797,074	$	543,907	$	—		$	3,612,914
Depreciation and amortization	72,810			38,146		31,993		109			143,058
Rationalization charges	12,056			568		6,437		—			19,061
Segment income from operations(1)	214,696			99,806		5,231		(20,003		)	299,730
Segment assets	1,551,729			808,771		707,578		32,891			3,100,969
Capital expenditures	108,606			43,120		40,152		15			191,893
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(2)	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

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(1) Corporate includes costs attributed to announced acquisitions of $1.4 million.

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

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

	2016		2015		2014
	(Dollars in thousands)
Total segment income from operations	$	299,730	$	319,812	$	360,853
Interest and other debt expense	67,813		66,926		76,301
Income before income taxes	$	231,917	$	252,886	$	284,552

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

	2016		2015
	(Dollars in thousands)
Total segment assets	$	3,100,969	$	3,144,625
Other assets	48,421		48,054
Total assets	$	3,149,390	$	3,192,679

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

	2016		2015		2014
	(Dollars in thousands)
Net sales:
United States	$	2,905,157	$	3,014,068	$	3,026,352
Foreign:
Europe	551,071		576,688		675,447
Canada	110,293		121,709		140,215
Other	46,393		51,506		69,776
Total net sales from foreign operations	707,757		749,903		885,438
Total net sales	$	3,612,914	$	3,763,971	$	3,911,790
Long-lived assets:
United States	$	853,508	$	805,219
Foreign:
Europe	252,246		263,425
Canada	27,687		31,305
Other	23,511		25,484
Total long-lived assets at foreign operations	303,444		320,214
Total long-lived assets	$	1,156,952	$	1,125,433

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, 11.1 percent and 10.9 percent of our consolidated net sales in 2016, 2015 and 2014, 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).