Business Segment Information

12 Months Ended

Dec. 31, 2019

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 and plastic closures and dispensing systems for food, beverage, health care, garden, personal care, home and beauty products. The plastic containers segment manufactures custom designed plastic containers for personal care, food, health care, pharmaceutical, household and industrial chemical, pet food and 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)
2019
Net sales	$	2,473,214	$	1,405,611	$	611,102	$	—		$	4,489,927
Depreciation and amortization	86,114		83,133		37,077		159			206,483
Rationalization charges	49,425		6,562		364		—			56,351
Segment income ⁽¹⁾	159,980		173,485		48,915		(22,894		)	359,486
Segment assets	1,853,875		2,263,131		722,848		35,474			4,875,328
Capital expenditures	102,832		95,153		32,928		31			230,944
2018
Net sales	$	2,377,980	$	1,456,799	$	614,096	$	—		$	4,448,875
Depreciation and amortization	81,420		74,217		35,949		151			191,737
Rationalization charges	5,316		180		757		—			6,253
Segment income	198,826		189,906		42,562		(19,194		)	412,100
Segment assets	1,601,944		2,169,985		722,205		33,791			4,527,925
Capital expenditures	84,490		62,183		44,242		58			190,973
2017
Net sales	$	2,278,054	$	1,246,669	$	565,131	$	—		$	4,089,854
Depreciation and amortization	77,698		61,668		34,607		89			174,062
Rationalization charges	3,308		1,042		1,476		—			5,826
Segment income⁽¹⁾	230,199		142,048		27,770		(43,027		)	356,990
Segment assets	1,670,426		2,182,529		704,432		34,081			4,591,468
Capital expenditures	87,115		56,682		30,141		491			174,429

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(1)	Corporate includes costs attributed to announced acquisitions of $1.8 million and $24.7 million in 2019 and 2017, respectively.

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



	2019		2018		2017
	(Dollars in thousands)
Total segment income	$	359,486	$	412,100	$	356,990
Interest and other debt expense	107,350		118,799		117,309
Income before income taxes	$	252,136	$	293,301	$	239,681

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



	2019		2018
	(Dollars in thousands)
Total segment assets	$	4,875,328	$	4,527,925
Other assets	55,731		51,369
Total assets	$	4,931,059	$	4,579,294

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



	2019		2018		2017
	(Dollars in thousands)
Net sales:
United States	$	3,418,848	$	3,333,668	$	3,110,595
Foreign:
Europe	818,032		858,255		747,043
Other	253,047		256,952		232,216
Total net sales from foreign operations	1,071,079		1,115,207		979,259
Total net sales	$	4,489,927	$	4,448,875	$	4,089,854
Long-lived assets:
United States	$	1,028,965	$	989,426
Foreign:
Europe	419,195		410,919
Other	122,171		117,165
Total long-lived assets at foreign operations	541,366		528,084
Total long-lived assets	$	1,570,331	$	1,517,510

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, 10.4 percent and 10.2 percent of our consolidated net sales in 2019, 2018 and 2017, 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 18).