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Business Segment Information
6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Business Segment Information
Business Segment Information

Reportable business segment information for the three and six months ended June 30 was as follows:

 
Metal
Containers
 
Closures (1)
 
Plastic
Containers
 
Corporate
 
Total
 
(Dollars in thousands)
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
Net sales
$
529,715

 
$
349,087

 
$
143,012

 
$

 
$
1,021,814

Depreciation and amortization(2)
19,124

 
17,000

 
8,572

 
23

 
44,719

Rationalization charges
2,239

 
349

 
450

 

 
3,038

Segment income from operations(3)
49,432

 
33,827

 
6,666

 
(14,692
)
 
75,233

 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2016
 

 
 

 
 

 
 

 
 

Net sales
$
529,604

 
$
206,492

 
$
138,546

 
$

 
$
874,642

Depreciation and amortization(2)
17,997

 
9,702

 
8,058

 
27

 
35,784

Rationalization charges
4,054

 
293

 
691

 

 
5,038

Segment income from operations
45,873

 
25,301

 
1,017

 
(4,540
)
 
67,651

 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
Net sales
$
995,951

 
$
546,769

 
$
284,500

 
$

 
$
1,827,220

Depreciation and amortization(2)
37,923

 
26,181

 
17,008

 
46

 
81,158

Rationalization charges
2,962

 
401

 
560

 

 
3,923

Segment income from operations (3)
93,303

 
57,625

 
13,500

 
(32,434
)
 
131,994

 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2016
 

 
 

 
 

 
 

 
 

Net sales
$
983,059

 
$
402,601

 
$
281,719

 
$

 
$
1,667,379

Depreciation and amortization(2)
35,947

 
19,116

 
15,840

 
55

 
70,958

Rationalization charges
4,054

 
417

 
1,637

 

 
6,108

Segment income from operations
83,489

 
49,820

 
1,068

 
(9,281
)
 
125,096


_____________

(1) 
Our Closures segment includes SDS as of the acquisition date of April 6, 2017.
(2) 
Depreciation and amortization excludes amortization of debt issuance costs of $1.0 million for each of the three months ended June 30, 2017 and 2016 and $2.2 million and $2.1 million for the six months ended June 30, 2017 and 2016, respectively.
(3) 
Income from operations for Metal Containers includes a $3.0 million charge for each of the three and six months ended June 30, 2017 related to the resolution of a past non-commercial legal dispute. Income from operations for Corporate includes costs attributed to announced acquisitions of $9.8 million and $23.0 million for the three and six months ended June 30, 2017, respectively.









Total segment income from operations is reconciled to income before income taxes as follows:
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
June 30,
 
June 30,
 
 
2017
 
2016
 
2017
 
2016
 
 
(Dollars in thousands)

Total segment income from operations
 
$
75,233

 
$
67,651

 
$
131,994

 
$
125,096

Interest and other debt expense
 
33,582

 
16,883

 
56,677

 
33,339

Income before income taxes
 
$
41,651

 
$
50,768

 
$
75,317

 
$
91,757


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.