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Business Segment Information
6 Months Ended
Jun. 30, 2018
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
 
Plastic
Containers
 
Corporate
 
Total
 
(Dollars in thousands)
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
Net sales
$
524,863

 
$
378,762

 
$
155,478

 
$

 
$
1,059,103

Depreciation and amortization(1)
20,423

 
18,758

 
8,854

 
43

 
48,078

Rationalization charges
258

 

 
234

 

 
492

Segment income
48,248

 
47,702

 
13,160

 
(4,993
)
 
104,117

 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2017
 

 
 

 
 

 
 

 
 

Net sales
$
529,715

 
$
349,087

 
$
143,012

 
$

 
$
1,021,814

Depreciation and amortization(1)
19,124

 
17,000

 
8,572

 
23

 
44,719

Rationalization charges
2,239

 
349

 
450

 

 
3,038

Segment income(2)
49,432

 
33,827

 
6,666

 
(14,692
)
 
75,233

 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
Net sales
$
1,010,818

 
$
749,108

 
$
311,459

 
$

 
$
2,071,385

Depreciation and amortization(1)
40,676

 
37,408

 
17,804

 
64

 
95,952

Rationalization charges
740

 
39

 
416

 

 
1,195

Segment income
85,341

 
95,927

 
24,242

 
(9,209
)
 
196,301

 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2017
 

 
 

 
 

 
 

 
 

Net sales
$
995,951

 
$
546,769

 
$
284,500

 
$

 
$
1,827,220

Depreciation and amortization(1)
37,923

 
26,181

 
17,008

 
46

 
81,158

Rationalization charges
2,962

 
401

 
560

 

 
3,923

Segment income(2)
93,303

 
57,625

 
13,500

 
(32,434
)
 
131,994


_____________

(1) 
Depreciation and amortization excludes amortization of debt issuance costs of $0.9 million and $1.0 million for the three months ended June 30, 2018 and 2017, respectively, and $2.0 million and $2.2 million for the six months ended June 30, 2018 and 2017, respectively.
(2) 
Segment income 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. Segment income 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 is reconciled to income before income taxes as follows:

 
Three Months Ended
 
Six Months Ended
 
June 30,
2018
 
June 30,
2017
 
June 30,
2018
 
June 30,
2017
 
(Dollars in thousands)
Total segment income
$
104,117

 
$
75,233

 
$
196,301

 
$
131,994

Interest and other debt expense
32,415

 
33,582

 
62,894

 
56,677

Income before income taxes
$
71,702

 
$
41,651

 
$
133,407

 
$
75,317


Sales and segment income 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 segment income during that quarter.