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Business Segment Information
9 Months Ended
Sep. 30, 2017
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 (1)
 
Plastic
Containers
 
Corporate
 
Total
 
(Dollars in thousands)
Three Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
Net sales
$
772,382

 
$
357,343

 
$
137,205

 
$

 
$
1,266,930

Depreciation and amortization(2)
19,250

 
17,457

 
8,636

 
22

 
45,365

Rationalization charges
326

 
134

 
101

 

 
561

Segment income from operations(3)
92,222

 
45,322

 
6,444

 
(5,422
)
 
138,566

 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2016
 

 
 

 
 

 
 

 
 

Net sales
$
797,370

 
$
211,955

 
$
130,318

 
$

 
$
1,139,643

Depreciation and amortization(2)
18,432

 
9,757

 
8,006

 
27

 
36,222

Rationalization charges
4,280

 
64

 
3,477

 

 
7,821

Segment income from operations
98,007

 
28,401

 
800

 
(4,801
)
 
122,407

 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
Net sales
$
1,768,333

 
$
904,112

 
$
421,705

 
$

 
$
3,094,150

Depreciation and amortization(2)
57,172

 
43,638

 
25,644

 
68

 
126,522

Rationalization charges
3,288

 
535

 
662

 

 
4,485

Segment income from operations (3)
185,525

 
102,947

 
19,944

 
(37,856
)
 
270,560

 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2016
 

 
 

 
 

 
 

 
 

Net sales
$
1,780,429

 
$
614,558

 
$
412,036

 
$

 
$
2,807,023

Depreciation and amortization(2)
54,379

 
28,873

 
23,847

 
82

 
107,181

Rationalization charges
8,333

 
482

 
5,114

 

 
13,929

Segment income from operations
181,496

 
78,220

 
1,868

 
(14,082
)
 
247,502


_____________

(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 September 30, 2017 and 2016 and $3.2 million and $3.1 million for the nine months ended September 30, 2017 and 2016, respectively.
(3) 
Income from operations for Corporate includes costs attributed to announced acquisitions of $0.8 million and $23.8 million for the three and nine months ended September 30, 2017, respectively. Income from operations for Metal Containers includes a $3.0 million charge for the nine months ended September 30, 2017 related to the resolution of a past non-commercial legal dispute.









Total segment income from operations is reconciled to income before income taxes as follows:
 
 
Three Months Ended
 
Nine Months Ended
 
 
Sept. 30,
2017
 
Sept. 30,
2016
 
Sept. 30,
2017
 
Sept. 30,
2016
 
 
(Dollars in thousands)
Total segment income from operations
 
$
138,566

 
$
122,407

 
$
270,560

 
$
247,502

Interest and other debt expense
 
30,583

 
17,318

 
87,259

 
50,657

Income before income taxes
 
$
107,983

 
$
105,089

 
$
183,301

 
$
196,845


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.